The ONE number every FOUNDER should know with confidence!
- Mar 30
- 2 min read
RUNWAY.
One word.
One number.
And most early-stage founders can't answer it with confidence.
I've seen it happen many times.
A founder is speaking to an investor.
The conversation is going well.
Then comes the question.
"What's your RUNWAY?"
Pause.
"I THINK we have about… six months? Hmmm.. MAYBE eight?"
Maybe.
Think.
About.
That ONE MOMENT can quietly change how an investor sees everything.
Because runway isn't just a number.
It tells an INVESTOR how well a founder understands their own business.
So what is it exactly?
First determine: Net Monthly Burn Rate = Monthly Cash Expenses - Monthly Cash Revenue
Second calculate: Cash RUNWAY = Current Cash Balance / Net Monthly Burn Rate
Simple in principle.
And "cash" means what is actually in the bank TODAY. Plus any assets you can liquidate in less than c. 30 days.
Not future funding. Not expected deals. Not "what we think is coming."
Just reality.
And how much is ENOUGH?
For some founders18-24 months.
For others in a tighter fundraising market 24-36 months.
It depends entirely on the company and its circumstances.
But 18 months of runway means NOTHING if you can't tell an investor what you'll achieve with it.
With a strong runway, you're in CONTROL. You make decisions from a position of STRENGTH.
With a WEAK runway, you're under PRESSURE. Decisions get MADE for you.
When runway DROPS below six months, investors notice.
And NOT in a good way.
And why does it matter so much?
Because runway shapes MAJOR decisions.
Hiring. Spend. When to fundraise.
When runway starts to shorten, there are three KEY LEVERS:
Increase revenue.
Reduce costs.
Raise capital.
Knowing your runway means knowing which lever to PULL.. and when.
Most founders find out their runway matters… when time is not on their side and they get that SINKING feeling.
The ones who are investor-ready know it every single month.
Without being asked.
That's the DIFFERENCE!
❓ If an investor asked you your exact runway today - could you answer without hesitation in that moment?
At Bird Dog, we help early-stage founders build the financial foundations to know their numbers with confidence - from THE BEGINNING.
👀 If you'd like a complimentary finance health check, connect with me and comment "HEALTH CHECK" below.
💾 Save this if you're in the early stages of building – would love to connect and hear about your journey.
♻️ Share if you know a founder who needs to hear this.
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