Runway

Definition

The Runway KPI refers to the amount of time (usually in months) your business can continue to operate before cash runs out.

Characteristics

-Runway is a calculated KPI based on Cash On Hand and Net   Cash Burn
-Can fluctuate from period to period depending on business   model (e.g. due to one time income and other special   effects)
-Every business needs to understand their runway to make   sure to either raise additional capital, increase revenue or   decrease costs

Example

A company has 1000 € available and loses 100 € per month. The estimated Runway of this company is 10 months.

Negations / Exclusions

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Cash Runway, Startup Runway

Time (Months)

Calculation

Cash on Hand – Net Cash Burn

Cost Total

Cost Labour

Net Cash Burn

Cash on Hand

Head-count

Individual KPIs