Who This Helps
You're a Product Manager with a dozen ideas and a tight timeline. You need to pick the one experiment that moves the needle, not just the loudest voice in the room. The Founder Finance Basics Mission Pack gives you a simple framework to turn product questions into measurable decisions.
Mini Case
Meet Priya. She's a PM at a SaaS startup. Revenue is up 12% this quarter, but cash is flat. Her team wants to test a new pricing tier, but she's not sure if they can afford the experiment. Using the Runway Forecast mission from the course, she runs a quick model: current runway is 7 months, the pricing test costs 3 weeks of engineering time. The forecast shows that delay would push runway to 5 months—too risky. She kills the experiment and focuses on a lower-cost retention test instead.
Do This Now (5 Steps)
- Grab your current cash balance and monthly burn. Open a spreadsheet or napkin. Write down both numbers.
- List your top three product experiments. For each, estimate the cost in time and money. Be honest—include team hours, tool fees, and any lost revenue from delays.
- Run a simple runway forecast. Divide your cash by monthly burn. Then subtract the cost of each experiment. See which one keeps you above a 6-month cushion.
- Pick the experiment with the highest impact-to-cost ratio. Impact is user value or revenue potential. Cost is time and cash. If two are close, choose the one that teaches you something fast.
- Write a one-sentence decision memo. Example: "We will run the retention test because it costs 2 weeks and preserves our 7-month runway." Share it with your team by Friday.
Avoid These Traps
- Falling in love with a big bet. Big experiments feel exciting but can sink your runway. Always check the numbers first.
- Ignoring hidden costs. Engineering time isn't free. Include it in your forecast.
- Waiting for perfect data. You don't need a crystal ball. A rough estimate is better than no estimate.
- Letting the loudest voice decide. Use the runway forecast as your tiebreaker, not opinions.
- Forgetting to update. Run this check every month. Your cash situation changes fast.
Your Win by Friday
By Friday, you'll have a clear decision on your next experiment. You'll know exactly why you picked it and how it affects your runway. No more guessing. No more wasted effort. Just one focused move that keeps your product—and your company—healthy.