Runway (startup runway and burn rate)

How many months a company can operate before cash runs out: cash in the bank divided by net monthly burn, the money going out minus money coming in.

Runway turns every technical decision into a time question. A rewrite that takes four months costs four months of runway, and a feature that does not move revenue or the next funding round shortens it without extending it. That is why founders ask for MVPs, fixed-price stages and build-vs-buy calls instead of open-ended projects. Net burn matters more than gross: revenue that starts earlier lengthens runway as much as a cost cut.

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Related terms

Payback period: How long it takes for savings or extra revenue from an investment to cover what it cost.
MVP (minimum viable product): The smallest version of a product that tests whether people want it enough to use or pay.
Build vs buy: The choice between paying for a ready-made product and building your own software, including what each costs over time.
Fixed price: A contract where scope and price are agreed up front and the vendor carries the risk.

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