Who This Helps
This is for founder operators who feel like they’re flying blind on cash. You have revenue coming in, but you’re not sure how long it will last. You want a clear number you can explain to your team and investors without hesitation.
The Founder Finance Basics Mission Pack is built for you. It turns messy spreadsheets into one-page truths.
Mini Case
Meet Ben. His SaaS company grew revenue 20% last quarter, but cash stayed flat. He was confused and stressed.
Ben ran a Runway Forecast from the mission pack. He found that at current burn, he had 7 months of runway. But if he hired one more engineer, that dropped to 4 months. That changed his hiring decision instantly.
He used a simple table: current cash ($120k), monthly burn ($17k), and a few scenarios. No fancy tools. Just a clear number he could act on.
Do This Now (5 Steps)
- Pull your latest bank balance. Use your accounting tool or bank statement. Write down the number.
- List your monthly fixed costs. Rent, salaries, software subscriptions. Don’t guess—check last 3 months.
- Estimate variable costs. Marketing spend, contractor fees. Average them over the same period.
- Calculate your net burn. Subtract total monthly costs from monthly revenue. If negative, that’s your burn rate.
- Divide cash by burn. That’s your runway in months. Now test a scenario: what if you add one hire? What if revenue drops 10%?
Avoid These Traps
- Using gross revenue instead of net. Revenue minus refunds and payment fees is your real number.
- Forgetting one-time expenses. A new laptop or legal fee can spike your burn. Include them.
- Assuming constant revenue. Revenue fluctuates. Use a 3-month average for a safer estimate.
- Ignoring payroll taxes. They add 10-15% on top of salaries. Don’t skip them.
- Not updating monthly. Runway changes fast. Revisit every 30 days.
Your Win by Friday
By Friday, you’ll have a one-page runway forecast you can share with your co-founder or board. You’ll know exactly how many months you have, and you’ll have tested 3 scenarios: base case, best case, and worst case.
That’s the kind of calm decision-making that keeps you in control. And honestly, it feels great to stop guessing.
Now go grab your bank balance. You’ve got this.