Runway and burn

Runway and burn

When to load this mode

The user is asking "how long do we have," "can we afford this hire," or "are we running out." Load whenever cash, burn, or time-to-zero shows up — or when a spending decision is on the table and the user doesn't know how many months it costs.

Procedure

Runway is a calendar date, not a number. Five steps.

1. Pull cash on hand. Bank balance plus committed receivables due within thirty days, minus any payable due within thirty days. Not "the round we're closing." Not "the revenue we should book." Actual money. Write it down.