Who This Helps
This is for founders who know their numbers but struggle to get everyone else on the same page. If you've ever felt your analysis gets stuck in a spreadsheet instead of driving action, this is your move. It's pulled straight from the Founder Finance Basics Mission Pack.
Mini Case
Ben's SaaS company had 6 months of cash left. His team was debating a big marketing push, but he needed a single source of truth. He built a simple runway forecast showing that at current burn, they'd hit zero in 184 days. But by modeling a 15% reduction in non-essential software spend, he added 27 days. That one number—211 days of runway—became the anchor for his next board update. No more confusion, just a clear timeline for decision-making.
Do This Now (5 Steps)
- Open your latest P&L and bank statement. Find your total cash and last month's net burn.
- Divide cash by burn. That's your baseline runway in months. Write it down.
- Pick one big upcoming decision, like a new hire or a marketing campaign. Model its monthly cost.
- Add that cost to your burn and recalculate the runway. See how many days it eats up.
- Now, find one expense you could reduce by 10% this month. Recalculate again. See the difference? That's your first scenario.
Avoid These Traps
- Don't mix personal and business accounts in your cash number. It creates a fuzzy, dangerous picture.
- Avoid using only an "average" burn. Your last 3 months are more real than a yearly average.
- Never present a single runway number. Always show at least two scenarios: one if nothing changes, and one with your proposed action.
- Don't get lost in 100-line item detail for a first forecast. Start with 5-7 major categories.
- Skipping the "what if we cut something" exercise. It's the best way to find flexibility.
- Forgetting to update the forecast after major decisions. It's a living document.
- Using unclear timeframes. Always use "days of runway" or "months of runway," not just a cash total.
- Hiding the forecast from your team. Share the simplified version to align everyone.
Your Win by Friday
By Friday, you'll have a one-page runway forecast card. You'll know your core number, how one key decision changes it, and one lever you can pull for safety. You'll walk into your next stakeholder chat with calm confidence, ready to turn that analysis into approved execution. Finance doesn't have to be scary—it's just your game plan written in numbers. Go get it.