Grow Cashflow

Burn Rate 101: How Much Runway Does Your Startup Really Have?


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We have a companion blog post for this episode 

Burn Rate 101: Startup Runway and Cash Flow Mastery


This episode offers a comprehensive guide for small business owners and startup founders on understanding and managing their financial longevity. It introduces the critical concepts of burn rate, distinguishing between gross burn (total expenses) and net burn (expenses minus revenue), and explains how to calculate a company's runway, which is the amount of time a business can survive before running out of cash. 

We emphasize the importance of a cash flow forecast for proactive financial planning and provides actionable strategies for reducing burn rate and extending runway by both increasing revenue and optimizing expenses. Finally, it highlights the significance of these financial metrics when seeking startup funding, underscoring what investors look for and the best practices for fundraising without appearing desperate.


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Grow CashflowBy Eric Eden