Glossary Term
Runway
How many months a company can keep operating before the money runs out, found by dividing cash in the bank by the monthly net burn. It sets the deadline for every product bet, because a plan that needs longer than the runway is not really a plan.
Example: A startup has $240,000 in the bank and spends $40,000 a month more than it earns, so runway is six months. The founder wants a nine-month rebuild. The team instead picks the one workflow that can show paying customers in ten weeks, because anything that cannot prove itself before the money is gone is a risk the company cannot carry.
When a short runway forces a pivot
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