Who This Helps
You’re a founder operator. Revenue is growing, but cash feels tight. You need a clear number you can explain to your team and investors. The Founder Finance Basics Mission Pack is built for exactly this moment.
Mini Case
Meet Ben. His SaaS startup grew revenue 20% last quarter. But cash stayed flat. He couldn’t tell if that was normal or a warning sign. Using the Runway Forecast mission from the Founder Finance Basics Mission Pack, Ben mapped out his monthly burn, current cash, and projected runway in 15 minutes. He discovered he had only 7 months of runway—not the 12 he assumed. That changed his hiring plan immediately.
Do This Now (5 Steps)
- Pull your cash balance from your bank or accounting tool. Use today’s number.
- List your fixed monthly costs like salaries, rent, and software subscriptions. Be honest.
- Add variable costs such as marketing spend and contractor fees. Use last 3 months’ average.
- Calculate monthly burn by subtracting total costs from monthly revenue. If negative, that’s your burn rate.
- Divide cash by burn to get months of runway. Example: $120k cash / $20k burn = 6 months.
Avoid These Traps
- Don’t forget one-time expenses like legal fees or equipment. They sneak up.
- Don’t assume revenue stays flat. Use a conservative estimate.
- Don’t ignore seasonality. If December is slow, adjust your burn.
- Don’t skip updating this monthly. A stale forecast is worse than none.
- Don’t confuse gross profit with cash. Cash is king.
- Don’t panic if runway is short. Now you know and can act.
- Don’t hide the number from your co-founder. Share it.
- Don’t use optimistic growth rates. Be realistic.
Your Win by Friday
By Friday, you’ll have a one-page runway forecast you can explain in 30 seconds. You’ll know exactly how many months of cash you have. That clarity lets you decide on hiring, spending, or fundraising with confidence. Ben used his forecast to delay a new hire and extend runway by 2 months. You can too. Finance doesn’t have to be scary—it’s just a flashlight in the dark. Shine it on your cash and move fast.