Cash & runway / 5 min read
Runway is not one number
Runway is often presented as a single answer: cash divided by monthly burn. Useful as a quick reference, but too blunt for the decisions a startup actually needs to make.
Runway changes before the bank balance does.
Hiring timing, collections, annual contracts, pricing changes, vendor commitments, and one-time costs can move the outlook materially. A useful runway view connects those drivers to the timing of cash—not just an average from the recent past.
Good runway planning shows when a decision must be made, not only when cash reaches zero.
Build a small set of scenarios.
A base plan, a growth plan, and a downside case are usually more useful than a dozen theoretical versions. Each should make the operating choices visible: which hires move, which investments continue, and which milestones the company can still reach.
Connect runway to milestones.
The question is not simply how many months remain. It is whether the company has enough time and resources to create the evidence required for the next customer, operating milestone, or strategic decision.