Forget 13 weeks. Let's get real. This is my "Doomsday Cash Runway" Template.

(with a free download at the end 🔽)

tl;dr just grab the template here.

Instructions

Get Cash Sitting in the Bank Right Now

1. Open your bank website

2. How much cash is sitting in there right now?

3. Enter that number in cell C6

Add: 100% Certain AR

If you know for sure (like 100%) you're going to collect on some AR, then enter that in cell C7. Want to be even more conservative? Make it $0.

Less: Known Payables

Subtract out any known payables that are due shortly or spoken for: vendor payments, estimated tax payments, etc. These go in cell C8.

The Net Result?

The sum of the numbers above gives us a conservative snapshot of "net cash left today" (cell C10).

Link Your Expenses

You have a monthly financial model, yes?

Take your total monthly expenses and link them through column E.

Forget Revenue. Expenses only.

(Note: if you've built a Three Statement Model, link your "Change in Cash" instead, but be sure to strip out any Revenue flowing through AR)

Column H Keeps It Real

Time to get real. Column H calculates how many months of runway you have right now, expenses only, assuming you never generate another dollar of revenue or raise capital.

This can sting. I know.

It can also be extremely helpful.

How months of "Doomsday Cash Runway" do you need to sleep at night?

See if you can maintain that number.

From there, everything else is upside.

Want the Template?

You can download it for free here.