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vishakha Jangir

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Set2Score • 6m

𝗕𝘂𝗿𝗻 𝗿𝗮𝘁𝗲 𝗶𝗻 𝗮 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 : The amount of cash a company is losing per month. It’s 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: ↳ 𝗡𝗲𝘁 𝗕𝘂𝗿𝗻 𝗥𝗮𝘁𝗲: 𝟭𝟬𝟬,𝟬𝟬𝟬 𝗥𝘀 - 𝟮𝟬,𝟬𝟬𝟬 𝗥𝘀 = 𝟴𝟬,𝟬𝟬𝟬 𝗥𝘀 𝗽𝗲𝗿 𝗺𝗼𝗻𝘁𝗵. ↳ 𝗥𝘂𝗻𝘄𝗮𝘆: 𝗪𝗶𝘁𝗵 𝗮 𝗻𝗲𝘁 𝗯𝘂𝗿𝗻 𝗿𝗮𝘁𝗲 𝗼𝗳 𝗥𝘀 𝟴𝟬,𝟬𝟬𝟬 𝗮𝗻𝗱 𝗥𝘀𝟭,𝟬𝟬𝟬,𝟬𝟬𝟬 𝗶𝗻 𝘁𝗵𝗲 𝗯𝗮𝗻𝗸: Runway = Cash Balance/Net Burn Rate =1,000,000/80,000≈12.5months 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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