Who This Helps
This is for founder operators who need to communicate insights to stakeholders fast. You have data but need a clear story. The Founder Finance Basics Mission Pack helps you turn numbers into decisions.
Mini Case
Meet Ben. Revenue is up 20% but cash is flat. He needs a runway forecast he can explain and act on. Using the Runway Forecast mission from the Founder Finance Basics Mission Pack, Ben built a one-page forecast in 30 minutes. He showed his board that at current burn, runway is 7 months. With a 12% cost cut, it extends to 10 months. The board approved his plan.
Do This Now (5 Steps)
- Pull your last 3 months of cash statements.
- Calculate monthly net burn: revenue minus expenses.
- Divide cash on hand by net burn to get months of runway.
- Test 3 scenarios: best case, worst case, and a 12% cost reduction.
- Write a one-page summary with your number and one action.
Avoid These Traps
- Don't forget one-time expenses like hiring or equipment.
- Don't assume revenue stays flat. Use a range.
- Don't hide bad news. Stakeholders trust honesty.
- Don't overcomplicate. One page is enough.
- Don't skip the stress test. Run the 12% cut scenario.
- Don't present without a clear ask. Say what you need.
- Don't use vague terms like "we're fine." Use numbers.
- Don't wait until cash is low. Forecast monthly.
Your Win by Friday
By Friday, you'll have a runway forecast card you can share with your board or co-founder. You'll know your exact months of runway and the one lever to pull. That's calm founder decision-making. And maybe a little less stress over coffee.
Fun fact: Ben's board actually smiled when he showed the 12% cut scenario. Numbers do that.