What is Runway?
How long a business can survive on its current cash before running out.
Runway is the number of months your business can keep operating before the money runs out, at your current burn rate. If you have $50,000 and spend $10,000 a month, you have five months of runway.
It's the single most important number for any business burning more than it earns. When runway gets short, you have three moves: make more money, spend less, or raise more — fast.
Founders track runway like a fuel gauge on a long drive with no gas stations. Watching it hit zero by surprise is how good companies die.
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Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.