Hamilton built America's entire financial system from scratch — because he understood that how long your resources last determines everything else. Know your runway before you need to know it.
Gross burn is your total monthly spending. Net burn subtracts revenue — it's what you're actually losing each month. For fundraising conversations, investors want your net burn figure.
18–24 months of runway before raising is the target. Under 12 months weakens your negotiating position. Under 6 months is a crisis. Plan to close your next round with at least 18 months ahead of you.
Even modest monthly revenue growth dramatically extends runway. The difference between 0% and 10% monthly growth can easily add 6+ months — model your growth honestly before making cuts.
Paul Graham's framework: if you change nothing, will your company survive? If revenue grows fast enough to reach profitability before cash runs out, you're "default alive." If not, every decision should reflect that urgency.
Ben Franklin in StellaPop CommandHub helps founders model financial scenarios, cash flow, and fundraising timelines.