I'm currently doing a bit of financial planning for our startup - nothing serious just playing with some numbers to see how much money we'd burn if we hired a few more people and how much longer that means we could last for.
A question I'm interested in getting opinions on is how much "runway" a startup should typically look at having at any one time. This isn't really something I've personally paid attention to before but I want to give it at least some thought before I move back onto important stuff.
I think it depends at what stage you are. If you are at the beginning then the answer is in the (conservative) estimate of how long it will take you to start getting some real money in. This can be very tricky to get right so be very conservative.
If you are already at a stage where you have some cash inflow from sales then I would say 6 months reserves is what you need. If you see that you have more than enough cash in the bank to last you 6 months without any sales then I would say expand.
A question I'm interested in getting opinions on is how much "runway" a startup should typically look at having at any one time. This isn't really something I've personally paid attention to before but I want to give it at least some thought before I move back onto important stuff.
Perspectives welcome.