How to Understand and Extend Your Company's Financial Runway

Most small business owners are playing a game of financial chicken, and they don't even realize it.

If you're one of these business owners, you're likely grinding through each month , covering expenses and hoping the next payment hits before the cash runs out. But without knowing exactly how long your current revenue and reserves will sustain you, you're essentially flying blind. That's where understanding your runway comes in.

What is "runway" in business?

Runway refers to how long your business can continue operating before it runs out of money, assuming no changes in revenue or expenses. It's one of the most critical financial metrics for small business owners to understand, and yet very few track it regularly.

Think of it like this: If your checking account were a gas tank, your