FAQ & key takeaways
How to read this metric
What it measures
Runway is the amount of time (usually in months) that a company has before it runs out of cash, assuming current income and expenses remain constant.
Why it matters
Runway is the most critical survival metric for any cash-burning startup. It dictates your timeline for everything: product development, hiring, marketing experiments, and fundraising. Knowing your “zero cash date” is essential for making responsible business decisions.
How to extend your runway
- Cut Expenses: Reduce your monthly burn rate by trimming non-essential costs.
- Increase Revenue: Focus on customer acquisition and retention to lower the net burn.
- Raise Capital: Secure more funding from investors before your runway gets too short.
- Pivot: If your current model is burning too much cash without enough growth, a change in strategy may be necessary to find a more sustainable path.