This cash runway model, helping to forecast your company's expenses, has been presented clearly in a ready-to-use style. A lot of the formulas have been automated which allows the user to spread their cash flow with minimal data entry.
The model comprises of three major sections requiring some form of data entry. These sections are:
- Funding: This part of the model is the cash inflow. Here the user can input their start-up's cash investments. There is a yellow section, where these inputs can be made, and there is a grey section which requires selection from a drop-down menu. The model will then place the money into the corresponding months.
- Revenue: Similar to funding, revenue is also part of the cash flow. The user is able to input the cash income from customers.
- Department Expenses: This offers 8 separate sections for entering operational expenses for each department in your company, whether you are an SaaS organization or not. This allows for more transparency when investors ask for detail regarding your cash inflow expenditure.
The sum of these sections will result in an ending cash balance.
Also included in this download is a cash burn chart depicting all three sections and their forecasts.
If you have any questions regarding this model, don't hesitate to start a discussion below.