Who This Helps
This is for founders who know their cash is tight but can't explain the 'so what' to their team or board. The Founder Finance Basics Mission Pack helps you move from a stressful spreadsheet to a clear, actionable story.
Mini Case
Ben's SaaS company had 6 months of runway left. His team wanted to hire two more engineers. By building a simple runway forecast, he saw that hiring would cut his runway to just 4 months. He presented this as a clear choice: "We can hire now if we secure funding within 90 days, or we can delay hiring to preserve our 6-month option." This turned a vague worry into a specific, timed decision for his investors.
Do This Now (5 Steps)
- Grab your last three months of bank statements and your current monthly burn rate.
- Project your cash out for the next 6 months. Include known big expenses.
- Be realistic about incoming cash. Use your worst-case revenue scenario, not the best.
- Find your zero-cash date. That's your true runway number.
- Write down the one key decision that date forces you to make (e.g., "Must start fundraising by October 1").
Avoid These Traps
- Don't mix personal and business finances in this calculation. It clouds the picture.
- Avoid using 'hoped-for' revenue from a big deal that isn't signed yet.
- Don't forget to include quarterly tax payments or annual software renewals.
- Resist the urge to just look at the total bank balance. Time is your real metric.
- Don't present the number without your recommended action. A date alone is just a deadline.
- Avoid doing this just once. Revisit your runway forecast every single month.
- Don't hide the forecast from your co-founders. Shared reality reduces panic.
- Never let your runway get so short that you have only one option left.
Your Win by Friday
You'll walk into your next team meeting with one clear number—your actionable runway—and the single decision it unlocks. No more circular debates about spending. Just a shared countdown clock that focuses everyone. Finance doesn't have to be a mystery; sometimes it's just simple math and the courage to share it.