Examples are the fastest way to catch hidden assumptions. The goal is not the exact number—it’s understanding how cash runway moves.
Start with a conservative base case, then test a downside shock and a managed response.
Three scenario templates that show how cash runway behaves when assumptions change.
Examples are the fastest way to catch hidden assumptions. The goal is not the exact number—it’s understanding how cash runway moves.
Start with a conservative base case, then test a downside shock and a managed response.
Use realistic values for starting cash, burn, and collections/revenue. Record outputs like runway months and cash-out estimate.
If the base case fails your decision threshold, you do not have a safe plan yet.
Worsen one variable meaningfully while keeping others constant.
If one shock breaks the plan, build a buffer or mitigation strategy.
Assume the downside happens—and you respond using levers you can execute.
The managed case is your plan B. Write it down before the shock happens in real life.