Why Most Startups Die (And How to Prevent It)
The #1 reason startups fail? They run out of money. According to CB Insights, 29% of startups fail because they ran out of cash — more than any other single reason.
But here's the thing: you can predict your runway with shocking accuracy if you use the right tool. That's why I built a free* Startup Runway Calculator in Google Sheets.
The Math Is Simple
Runway = Cash Balance / Net Monthly Burn
Net Monthly Burn = Monthly Expenses - Monthly Revenue
If you have $500,000 in the bank and spend $50,000/month with $10,000/month revenue:
- Net Burn = $40,000/month
- Runway = 12.5 months
Why a Spreadsheet Beats a Calculator
One-off calculators tell you today's number. A spreadsheet tells you:
- What happens if revenue grows 20% month over month?
- What if you cut marketing spend in half?
- How much longer does $500K from investors buy you?
What I Built
A 3-tab Google Sheets template that:
- Dashboard — Enter cash, burn, and revenue → instant runway + survival score
- 12-Month Forecast — See cash position month by month with pre-loaded formulas
- Scenario Planner — Model 4 different outcomes simultaneously
How to Get It
The full template with pre-filled data, 15+ formulas, and scenario planning is available for $29 on Gumroad. It takes 2 minutes to set up and will save you from the single biggest destroyer of startups.
Grab the Startup Runway Calculator here
*Note: No, it's not free — but $29 is cheaper than missing a fundraising deadline by 2 weeks.
What tools do you use to track runway? Share in the comments.
