Your startup runway is cash in the bank divided by net monthly burn, expressed in months. If you hold $180,000 and spend $30,000 more than you bring in each month, you have six months. The number is simple arithmetic; what founders get wrong is which cash they count,...
A useful startup financial model has four parts: an assumptions tab, a revenue build driven by two or three inputs, a cost block split into people and everything else, and a cash line that tells you how many months you have left. It fits on one screen per tab and...