Burn Rate

What is Burn Rate?

Burn rate can be

Net burn, the amount a company loses monthly.

Gross burn, the company’s monthly operating cost.

Why Net Burn Rate is important?

Shows whether your current revenue is substantial enough.

Shows how long you can sail before you run out of money.

To calculate Net Burn Rate

Tips to decrease Burn Rate

Try to merge or retire activities that require more money to be run.

Look for free alternatives for any of the tools you use to work/sell.

Try to bring in more qualified leads to compensate for the burn rate.

Alternatively, considering bootstrapping or raising funds.