Cash Flow

Runway

Definition

Cash on hand divided by net monthly burn — the number of months a business can operate before exhausting cash.

Why it matters

Runway is the single number that tells startup operators how urgent fundraising or cost cuts are. Below 6 months, decisions get progressively more constrained.

Where this comes up

Cash Flow Forecasting 101 for Business Owners
When to Hire a Fractional CFO: The Complete 2026 Decision Guide

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