How Long Is Your Business Runway?

Every business owner needs to know one number:
How many months your business can survive if nothing changes.

This is called runway.
It takes about 10 minutes and a calculator to estimate.

Step 1

Open your last 3 months of bank statements.
Add up all incoming money per month. Calculate the average.

Step 2

Add up all outgoing money per month. Calculate the average.

Step 3

Burn rate = outflow – inflow
If $10K goes out and $9K comes in, your burn rate is $1K/month.

Step 4

Runway = current balance ÷ burn rate
If you have $5.8K and burn $1K/month → runway = 5 months.