How to Calculate Your Startup's Runway (Before It's an Emergency)
Runway is cash on hand divided by net burn, recalculated monthly — here's the formula, worked with real numbers, and why the six-month mark matters more than zero.
Upstart Wire
Author
Founder-in-Residence, Former CEO
12+ years experience
Marcus Cole spent seven years as CEO of a B2B logistics software company he co-founded out of a shared office in Austin, growing it from three people to sixty before an acquisition in 2023. Before that he ran operations at two earlier startups that didn't make it, which he says taught him more than the one that did. He writes about pricing, hiring, fundraising, and the unglamorous operating mechanics of building a company, drawing directly on board decks, cap tables, and mistakes he's already made so readers don't have to repeat them.
Runway is cash on hand divided by net burn, recalculated monthly — here's the formula, worked with real numbers, and why the six-month mark matters more than zero.
Marcus Cole · · 7 min read
A practical framework for setting founder salary without wrecking runway or morale — plus what changes once you're VC-backed.
Marcus Cole · · 7 min read
Pricing mistakes rarely look dramatic in the moment — they show up as a slow, compounding erosion of margin that’s easy to miss until it’s a real problem.
Marcus Cole · · 6 min read
A practical framework for splitting equity based on actual contribution and risk, plus the vesting mechanics every co-founder agreement needs regardless of the split.
Marcus Cole · · 6 min read
State tax rates get all the attention, but they’re rarely the deciding factor once you actually run the full comparison.
Marcus Cole · · 6 min read
A founder’s guide to the handful of policies that genuinely protect a small business, and the add-ons that mostly protect the agent’s commission.
Marcus Cole · · 6 min read
Neither path is morally superior. Here’s what actually changes about how you run the company depending on which one you pick.
Marcus Cole · · 6 min read
Lenders reject loan applications for a small, predictable set of reasons — most of them fixable months before you actually apply.
Marcus Cole · · 6 min read
The financial and operational signals that actually indicate you can afford — and need — help, versus the ones that just mean you’re tired.
Marcus Cole · · 6 min read
Profit is an accounting opinion. Cash is a fact. Here's why a business can show a healthy net income on paper and still bounce a payroll check the same month.
Marcus Cole · · 6 min read
A worked comparison of self-employment tax, payroll requirements, and paperwork burden to help you figure out when an S-corp election is actually worth the hassle.
Marcus Cole · · 6 min read
How to calculate the exact sales volume that turns your business from a hobby with a bank account into something that actually pays you back.
Marcus Cole · · 6 min read
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