Who This Helps
This is for founder operators who see a key finance KPI, like cash runway, trending down and need to know why—fast. It’s pulled straight from the Board Finance & Runway Narrative course. No more endless data rabbit holes.
Mini Case
Your runway dropped from 18 to 14 months. Revenue is up 12%, but cash is draining. Is it a big new hire? A delayed client payment? A surprise tax bill? You need the real culprit, not a list of maybes.
Do This Now (5 Steps)
- Block 90 minutes. Seriously. Put it on your calendar right now. This is your diagnosis session.
- Grab your last 3 months of bank statements and P&L. That’s your evidence pack.
- Write down the single KPI that dropped. For example: “Monthly Net Burn increased by $15k.”
- Trace it to one of three buckets: Revenue (money in), COGS (cost to deliver), or Operating Expenses (everything else).
- Find the top 2 line items in the guilty bucket. Did software spend jump? Did a key client pay late? There’s your root cause.
Avoid These Traps
- Don’t start by looking at everything. You’ll get overwhelmed.
- Don’t blame ‘the market’ first. Look internally for the lever you control.
- Don’t skip the step of writing the KPI down. Clarity is your best friend here.
- Don’t involve 5 people in the first session. Diagnose solo, then socialize.
- Don’t let perfect data stop you. Use the statements you have. Good enough is perfect for a first pass.
- Don’t diagnose without a timer. 90 minutes max.
- Don’t forget to check payment terms. A shift from Net-30 to Net-60 can silently crush cash flow.
- Don’t mix diagnosis with solution brainstorming. Different meetings!
Your Win by Friday
By Friday, you’ll have one clear sentence: “Our runway dropped because our cloud hosting costs spiked 40% after the product launch.” That’s it. No more fog. You can now fix the actual problem, not just the symptoms. You’ve just turned a week of worry into one actionable insight. High five to that.