Definition
Runway refers to the amount of time a business can continue operating before exhausting its available cash, based on current burn rate.
Related Services
Runway analysis is essential in startup financing, investment planning, and cash flow management to determine financial sustainability.
Problem and Application
Businesses with a short runway risk running out of funds before reaching profitability. Companies must actively manage expenses and seek additional funding if necessary.
Conclusion
Monitoring runway allows businesses to plan financing strategies effectively, ensuring they have enough resources to reach key milestones.
