Begin with a dated position, then change one assumption. The worksheet below runs locally and uses illustrative monthly amounts.
Use sample figures. No bank connection, upload or saved account is involved.
$50,000 net monthly burn. $550,000 cash after one month.
Simple runway = starting cash ÷ positive net monthly burn. Taxes, debt, growth, timing and irregular expenses are excluded. No financial advice or prediction.
“the rest of the conversation depends on the answer”
Paul Graham asks whether a startup reaches profitability before its existing money runs out, given expense and growth assumptions. That is a broader question than the constant-burn worksheet here.
Paul Graham · Default Alive or Default Dead? · October 2015 ↗Historical essay on startup survival. Not a Finneryx testimonial, endorsement or financial recommendation.$600,000 starting cash, $75,000 monthly receipts and $125,000 monthly outflows: $50,000 net burn.
Preset comparison is separate from your custom worksheet. All figures are fictional and use the same constant-burn formula.
Cash receipts are not automatically accounting revenue; cash outflows are not automatically the expenses for the same reporting period.
| Opening cash | $600,000 |
|---|---|
| Cash receipts | + $75,000 |
| People and operations | − $100,000 |
| Tools and infrastructure | − $25,000 |
| Closing cash | $550,000 |
Money Smart for Small Business, Module 10: Managing Cash Flow explains cash timing, cash-flow statements and planning for a small business. Use this participant guide to question the assumptions behind this simplified worksheet.
Read Managing Cash Flow / PDF ↗Public small-business teaching material. No FDIC or SBA affiliation or approval.Who owns the starting cash figure, and what does it include?
Which hire, collection delay or operating commitment moved?
What evidence would change the decision, and when will you look again?