2 min read
Definition
Cash runway is how many months a business can keep operating at its current net burn before it runs out of cash. It equals usable cash divided by monthly burn rate — the deadline by which something must change.
In plain terms
£90,000 of cash burning £15,000 a month gives six months of runway. Most talked about among loss-making startups, but every business has one; for a profitable business it is effectively infinite, and for a struggling one it is the number that matters most.
Why it matters
Knowing your runway turns a vague worry into a countdown you can act on — cut burn, pull cash in, or raise finance while options remain. See cash runway explained and how to extend it.
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