Runway lengthens if you’re making money

(adapted from this twitter thread)

One thing most people don’t realize about starting a small business, particularly in the context of something with low overhead and low fixed costs, like software or media: not-enough revenue is still money!

Say you have $16k and need $2k/mo to live on. That’s 8 months of runway.

Say that after 3 months, your business makes $1k/mo. Not sustainable yet, but now you have 10 months runway! ((16-2*3)/(2-1)=10)

Not-enough revenue is still real money! 🤑

Huh. “runway” is actually backwards metaphor for this thing, at least in a personal context (may be different with “moon or bust” startups, that aren’t making any money while burning up runway).

Real runway is fixed distance, & certain speed needed for takeoff, but faster you go the sooner you run out of runway! 🛫 All-or-nothing. It’s dangerous to be going very fast but not fast enough, because it means that

By contrast, as you get momentum going with a personal business, that actually buys you more time.

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