๐๐๐ฟ๐ป ๐ฟ๐ฎ๐๐ฒ ๐ถ๐ป ๐ฎ ๐๐๐ฎ๐ฟ๐๐๐ฝ : The amount of cash a company is losing per month. Itโs essentially the negative cash flow of the business. Let's understand this with some maths : Suppose a startup has 1,000,000 Rs in the bank and spends 100,000 Rs each month on operational costs. If the startup generates 20,000 Rs in revenue per month: โณ ๐ก๐ฒ๐ ๐๐๐ฟ๐ป ๐ฅ๐ฎ๐๐ฒ: ๐ญ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฅ๐ - ๐ฎ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฅ๐ = ๐ด๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฅ๐ ๐ฝ๐ฒ๐ฟ ๐บ๐ผ๐ป๐๐ต. โณ ๐ฅ๐๐ป๐๐ฎ๐: ๐ช๐ถ๐๐ต ๐ฎ ๐ป๐ฒ๐ ๐ฏ๐๐ฟ๐ป ๐ฟ๐ฎ๐๐ฒ ๐ผ๐ณ ๐ฅ๐ ๐ด๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฎ๐ป๐ฑ ๐ฅ๐๐ญ,๐ฌ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ถ๐ป ๐๐ต๐ฒ ๐ฏ๐ฎ๐ป๐ธ: Runway = Cashย Balance/Netย Burnย Rate =1,000,000/80,000โ12.5months So, the startup has around 12.5 months before it runs out of cash. Follow me for informative insights on startups, freelancing, personal branding :)
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