Who This Helps
This is for founder operators who need to make fast, calm decisions about cash. If you are tired of guessing whether you have enough runway, the Founder Finance Basics Mission Pack gives you a simple system. One mission, the Runway Forecast, turns your bank balance into a clear number you can explain to your team and investors.
Mini Case
Meet Ben. His revenue is up 20% this quarter, but cash is flat. He is confused. Using the Runway Forecast mission from the Founder Finance Basics Mission Pack, Ben maps out his monthly burn: $50,000 in fixed costs, $30,000 in variable costs, and $20,000 in revenue. His runway? 12 months. That number lets him sleep better and say no to panic hires.
Do This Now (5 Steps)
- List your fixed costs. Rent, salaries, software. These do not change with revenue. Write them down.
- Estimate variable costs. Marketing, contractors, tools. These change month to month. Use last quarter’s average.
- Add your revenue. Be honest. Use actual bank deposits, not optimistic forecasts.
- Calculate monthly burn. Fixed costs plus variable costs minus revenue. That is your cash going out each month.
- Divide cash by burn. Your bank balance divided by monthly burn gives you runway in months. Update this every month.
Avoid These Traps
- Ignoring variable costs. They can spike. Track them weekly, not monthly.
- Using optimistic revenue. Use last month’s actual number, not next quarter’s target.
- Forgetting one-time expenses. A new laptop or legal fee can eat a month of runway. Add a buffer of 10%.
- Not updating regularly. Runway changes when you hire or lose a client. Recalculate every month.
- Hiding bad news. If runway drops below 6 months, tell your team. They can help cut costs.
Your Win by Friday
By Friday, you will have a one-page runway forecast card. You can show it to your co-founder, board, or investors. You will know exactly how many months of cash you have. That clarity lets you make fast decisions: hire, cut, or raise. And you will feel calm, not stressed. That is a win.
Fun fact: Ben now checks his runway every Monday morning with coffee. It takes 5 minutes and saves him from panic attacks.