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 checkedFreeBeginner
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.
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.
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.
