Financial mismanagement can have several negative impacts on a startup: 1. Cash Flow Problems: Inadequate cash flow can prevent the business from covering day-to-day expenses. 2. Inability to Secure Funding: Poor financial records and mismanagement can make it difficult to attract venture capital or other forms of investment. 3. Operational Disruptions: Financial difficulties can lead to delays in production, inability to pay employees, and other operational challenges. 4. Business Failure: In severe cases, financial mismanagement can lead to the closure of the business.