Understanding Burn Rate
When you first start a company, there’s a good chance you’ll have to pour money in before money starts coming out.
It might sound scary, but it’s a really important part of starting a business. Investing money into growth is what allows
you to build teams, products, and ultimately, a company that will last. So how do you understand how much you’re investing?
By calculating your burn rate. This number will help you zero in on the date you’ll run out of cash — and the date you’ll start making a profit.