Finance & Accounting

Core Principle

Cash is oxygen. You don't need perfect books — you need to know exactly when the money runs out and what levers you can pull.

Burn Rate Analysis

Gross vs. Net Burn

GROSS BURN = Total monthly expenses (all cash out the door)
NET BURN = Total expenses - Total revenue (actual cash drain)

Example:
  Monthly expenses: $80K
  Monthly revenue: $30K
  Gross burn: $80K
  Net burn: $50K