Work guide
SaaS runway: the founder numbers that actually matter
Runway is not a vanity chart. It is months until you must raise, cut, or become default alive. Founders get into trouble when they mix gross cash with restricted funds, forget tax payments, or assume last month’s growth continues forever.
Updated 2026-09-05
Define burn honestly
Net burn = cash out − cash in over a period. Include payroll taxes, contractors, infrastructure, and one-time tools you pretend are temporary. Exclude “maybe” revenue until it clears.
Two runways, two decisions
Cash runway answers ‘how long until zero.’ Default-alive thinking asks whether growth and margins can cover burn without a raise. You need both views: one for survival, one for strategy.
Monthly ritual
- Update cash, burn, and runway every month on the same day
- Write one sentence on what changed and why
- Pre-commit cut actions at 9, 6, and 3 months of runway
Key takeaways
- Honest burn beats optimistic dashboards.
- Track cash runway and path to default alive separately.
- Decide cuts before the crisis, not during it.