Money, pricing & unit economics

How do I calculate my cash runway, and how do I know when I need to raise or borrow?

Runway is simply current cash divided by your average monthly net burn over the last 3 months - and you should be recalculating it monthly, not once a year. Start the raise-or-borrow conversation at 6+ months of runway left, not 2, because both equity rounds and working-capital debt in India take longer to close than founders expect. If your burn is inventory-driven rather than opex-driven, debt (working capital loans, invoice financing) is usually cheaper than equity for that specific need.

Go deeper

3 resources, 1 India-specific, 3 link-checked.

📋 Template
✓ Link checked Free Beginner

A single-purpose calculator that answers the one question that matters when things get tight: how many months of cash do I actually have left, computed properly off trailing burn, not a guess.

Startup Runway Calculator Template

From startupproject.org by Startup Project

  • Runway = current cash ÷ trailing average net monthly burn.
  • Recalculate monthly - burn rate shifts fast as ad spend and inventory purchases move.
  • Use it to set a hard trigger point (e.g. 6 months left) for starting a raise or debt conversation.
Open startupproject.org →
📄 Article
✓ Link checked India Free Intermediate

A rare India-specific look at non-dilutive funding for D2C brands - working capital and revenue-based debt matched to inventory and marketing cycles instead of the default 'raise a round' instinct.

How D2C SMEs in India Are Using Debt Financing to Scale Sustainably

From recurclub.com by Recur Club

  • Debt financing suits recurring, predictable needs like inventory better than equity does.
  • Indian D2C brands increasingly blend equity with working-capital debt rather than choosing one.
  • Lender matching considers revenue, runway and cash-flow data, not just collateral.
Open recurclub.com →
▶️ Video
✓ Link checked Free Beginner

The fastest way to absorb the Profit First system if you're not going to read the whole book right now - a practical, step-by-step video from the author himself.

Profit First: Practical Steps for Small Business Financial Success

On youtube.com by Mike Michalowicz

  • Same core percentage-allocation system as the book, condensed into a watchable format.
  • Practical steps you can start applying to your bank accounts this week.
  • Good primer before deciding whether to invest time in the full book.
Watch on YouTube youtube.com →

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