Burn Rate and Runway: How to Manage Cash Like a Survivor

Cash is the only thing that kills you instantly

Profitless growth is fine — running out of cash is not. Knowing your burn and runway is non-negotiable.

The numbers

  • Gross burn: total monthly spend
  • Net burn: spend minus revenue
  • Runway: cash on hand ÷ net burn

Levers to extend runway

  • Improve gross margin
  • Tighten CAC and payback
  • Renegotiate vendor terms
  • Cut non-essential spend before it is forced

Start raising — or cutting — when you have 6+ months of runway, not 6 weeks. Desperation is expensive.

Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.

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