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Business Terms
Runway
Definition
The amount of time a company can operate before running out of cash.
Overview
Runway = Cash ÷ Monthly Burn Rate. It shows how long you can survive at current spending levels. Critical for planning and fundraising.
Example
$100,000 cash ÷ $20,000 monthly burn = 5 months runway.
Best Practices
Monitor regularly. Plan to extend runway before it gets short.
Common Mistakes to Avoid
Not tracking runway
Optimistic projections
Acting too late
Frequently Asked Questions
How much runway should I have?
At least 6-12 months. Longer for uncertain times or before fundraising.