StrataVera

burn rate

financial
cash flowfinancial planningsurvival metrics
Burn rate refers to how quickly a company spends its available cash reserves to cover operating expenses. It's typically measured monthly and helps business owners understand how long they can continue operations before running out of money or needing additional funding.
In Brief

Burn rate refers to how quickly a company spends its available cash reserves to cover operating expenses. It's typically measured monthly and helps business owners understand how long they can continue operations before running out of money or needing additional funding.

burn rate Burn rate measures how quickly a business depletes its cash reserves to cover operating expenses. Calculated as the net cash spent per month, it's essential for determining cash runway and business survival. Service businesses monitor burn rate closely because it directly predicts how long they can operate before requiring additional revenue or capital.

Christy Rexroth
Defined byChristy Rexroth
Founder & Strategic Architect
BS Business Management, Indiana University Kelley School of BusinessBusiness Excellence Program (Accelerate), AllerganFundamentals of Digital Marketing, Google Digital AcademyFounder & Strategic Architect, StrataVera Consulting & CoachingDirector of Business Development, AOB Med Spa (Diamond Allergan)

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