Cash is not king

Eric Reis writes, "Cash on hand is just one important variable in a startup’s life, but it’s not necessarily the most important. What matters most is the number of iterations the company has left. While some cost-cutting measures reduce that number, others increase it. In lean times, it’s most important to focus on cutting costs in ways that speed you up, not slow you down. Otherwise, cutting costs just leads to going out of business a little slower.

The full formula works like this:

• runway = cash on hand / burn rate
• # iterations = runway / speed of each iteration

Check out the full article here: Cash is not king