Revenue8 min read
Run rate: what it means and how to calculate it
Run rate scales a recent month or quarter up to a year. Revenue and expense formulas, one lumpy quarter worked three ways, and when the figure misleads.
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Money, in plain language
Short guides on runway, burn, pricing and getting paid. Written for founders, not accountants. If you only need a term defined, the glossary has each one in a sentence.
Cash flow10 min read
Cash vs accrual accounting for startup founders
Accrual shows whether the business is profitable and cash shows how long you survive. One SaaS quarter, month by month, plus the IRS and HMRC rules.
Spending5 min read
Fixed vs variable costs: sort a startup budget
Fixed costs stay put when sales change; variable costs move with each sale. Sort a sample startup budget with one test to find its monthly floor and break-even.
Revenue7 min read
Rule of 40: formula, benchmarks, and when it lies
Revenue growth plus profit margin should reach 40%. How to compute it honestly, how few companies manage it, and the stages where the score means nothing.
People6 min read
How to pay yourself as a founder or owner
Set a personal floor, fill the company's cash reserve first, then pay yourself a fixed monthly amount. How it works as a draw, salary or dividend, with numbers.
People8 min read
Fractional CFO cost, and when it is worth it
Fractional CFO cost by hourly, retainer and project pricing, what it takes from a startup's runway, and how to tell if you need one yet.
Tools6 min read
Fathom HQ alternative for startup founders
Fathom (fathomhq.com) reports on your Xero, QuickBooks or MYOB books. What it does and costs, checked on its site, who it suits, and when founders need more.
Cash flow7 min read
Cash flow problems in a growing business
Profitable on paper and short of cash: how to tell a timing problem from a burn problem, find where the money is stuck, and free it before payroll day.
Cash flow6 min read
When will you run out of cash? Find the month
Estimate cash runway, then add hires, annual bills and customer changes to a monthly calendar. See what moves the cash-out month and when you need to act.
Revenue8 min read
What is MRR? Meaning, calculation and MRR vs ARR
MRR is monthly recurring revenue. Learn how to calculate it step by step with a worked month, what to leave out, and when to use MRR vs ARR.
Revenue8 min read
ARR meaning: what it is and how to calculate it
ARR means annual recurring revenue: MRR times 12. See how to calculate it from a real customer list, what to leave out, and how it differs from revenue.
People7 min read
True cost of an employee: salary and cash runway
Price a hire the way your bank account sees it: salary plus employer taxes, pension, tools and one-offs, then the runway it spends and what it must earn back.
Cash flow8 min read
Burn rate formula: gross, net and cash burn
The burn rate formula, gross vs net burn, and what cash burn rate means, worked through three months of bank statements with one example.
Revenue10 min read
Customer concentration: when one is too big
Customer concentration worked through: top-1 and top-3 share, runway with and without your biggest customer, and what to do this quarter.
Revenue7 min read
SaaS metrics by stage: what to track now
Which SaaS metrics matter depends on your stage. What to track before revenue, with your first customers, once sales repeat, and when you spend on growth.
Cash flow9 min read
Default alive or default dead: the calculation
Paul Graham's test, worked through: the four inputs, the month-by-month projection, a spreadsheet you can copy, and one company that comes out both ways.
Fundraising6 min read
Burn multiple: what yours says and what to fix
Burn multiple is net burn divided by net new ARR. How to read it across quarters, take a bad quarter apart to find the cause, and fix the side that moved.
Getting paid6 min read
Getting paid on time: one invoice, day by day
Follow one €24,000 invoice from contract to cash, see where the days leak away, and set up the reminders, late-payment rights and dates that close the gap.
Getting paid5 min read
What does net 30 mean, and should you offer it?
Net 30 means payment is due 30 calendar days after the invoice date. The variants with real dates, and what net 30 or net 60 costs a startup in cash.
Pricing7 min read
Raising prices: how many customers can you lose?
Before you raise prices, work out how many customers you can lose and still come out ahead. The break-even math, the order to raise in, and the email to send.
Fundraising6 min read
How much runway should your funding round buy?
Size a round from the burn of the team the money will build, a plan that runs late, and six months to raise again. A worked seed example with three sizes.
Spending7 min read
Cost cutting strategies: a plan for cash runway
Start from the months of runway you need, work out the burn that gets you there, then cut in an order that protects revenue. A worked example, timing included.
Habits9 min read
Monthly business review and report template
A 30-minute monthly business review for founders, worked through one month, plus a one-page monthly financial report template for your board.