Who This Helps
You're a product manager who gets asked "What if we spend more on growth?" or "Can we afford that hire?" You need answers, not more questions. The Founder Finance Basics Mission Pack is built for you. It turns fuzzy product questions into clear, measurable decisions.
Mini Case
Meet Ben. He runs a SaaS product. Revenue is up 12% this quarter, but cash is flat. His team wants to hire two engineers. Ben needs a fast, honest answer. He uses the Runway Forecast mission from the Founder Finance Basics Mission Pack. In 20 minutes, he builds a one-page forecast. It shows he has 7 months of runway left. Hiring now would drop that to 4 months. Ben decides to wait one quarter. The team gets a clear "not yet" with a date.
Do This Now (5 Steps)
- Grab your last 3 months of bank statements. You need actual cash in and out, not budget numbers.
- List your fixed costs. Rent, salaries, subscriptions. These don't change month to month.
- Add your variable costs. Marketing spend, contractor fees, one-time tools.
- Calculate your monthly burn. Subtract total expenses from total revenue. If negative, that's your burn rate.
- Divide your cash balance by monthly burn. That's your runway in months. Write it down. Share it in your next standup.
Avoid These Traps
- Don't use annual averages. Your cash flow changes every month. Use actual recent data.
- Don't ignore one-time costs. A big software renewal or legal fee can wreck your forecast.
- Don't assume revenue stays flat. If you're growing fast, your burn might increase too. Be honest.
- Don't hide bad news. A short runway is a decision point, not a failure. Share it early.
Your Win by Friday
By Friday, you'll have a one-page runway forecast you can explain in 30 seconds. Your team will stop guessing and start planning. You'll know exactly when you need to raise money or cut costs. That's a calm, confident product decision.