Cash runway is shrinking
Community signal
Runway is the number of months you can keep operating before cash runs out. Seen late, the only fixes left are expensive.
In real life: By the time the bank balance looks low, the cheap fixes (cut ads, delay restock) are already weeks overdue.
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Data you need
- requiredCash on hand. Bank plus payouts due within 30 days.
- requiredMonthly burn and true profit. To compute net monthly cash change.
Formula
Runway (months)
Cash on hand / (Monthly burn - Monthly true profit)If true profit is negative, runway counts down with no offset.
Key insight
- Earlier warning means cheaper fixes.
- Runway, not revenue, decides what you can risk next.
Action checklist
- 1Compute runway monthly · medium · 30 min
One number that frames every decision. - 2If under 3 months, cut burn now · medium · 1 day
Ads, restock size, fees. - 3If over 6 months, test growth bets · easy · ongoing
You have room to experiment.
Money impact · Free up cash
Buys time by surfacing the squeeze early, when fixes are free instead of debt-funded.
Common mistakes
- Tracking revenue but never runway.
- Reacting only when the account is nearly empty.
How Okiela helps
True Profit feeds runwayplanned
Okiela computes the true profit input that runway depends on.
Trust & sources
- Community signalRunway is standard FP&A; thresholds are guidance
Last reviewed 2026-06-22 · Confidence 3/5