StartupCostCheck
StartupCostCheck Glossary
Short definitions of the money words behind a safe business start: runway, burn, risk budget, what to buy now and what to delay.
Startup runway
Startup runway is the number of months your available business cash can cover planned startup costs and monthly burn before the money runs out.
Monthly burn
Monthly burn is the expected amount your business spends in a typical month before counting personal living costs or one-time startup purchases.
Personal burn
Personal burn is the minimum monthly amount your household needs while you start the business, kept separate from the company's operating costs.
Burn rate
Burn rate is the observed pace at which your cash balance falls over time after business income and all relevant outgoings are included.
Startup cash needed
Startup cash needed is the total cash required for essential opening purchases, early recurring bills and a buffer until the first realistic sale.
Risk budget
A risk budget is the maximum amount of your savings you choose to expose to the startup without using household emergency money or essentials.
One-time startup costs
One-time startup costs are purchases or fees paid once to open the business, such as core tools, registration, initial stock or basic signage.
Recurring costs
Recurring costs are business expenses that return on a schedule, including rent, software, insurance, subscriptions and routine supplies.
Buy-now list
A buy-now list contains only the items and services required to complete the first paid job safely, legally and to an acceptable standard.
Delay list
A delay list records useful but nonessential startup purchases that can wait until customer demand, cash flow or a clear operating need appears.
Startup red flags
Startup red flags are conditions that make a launch plan unusually fragile, such as no cash buffer, weak cost evidence or spending beyond your limit.
Low-confidence assumptions
Low-confidence assumptions are cost, timing or sales estimates supported by weak evidence, old prices or hope rather than a current source.
Lean start
A lean start launches the smallest credible version of a service business that can win and complete a paid job safely and legally for a real customer.
Break-even point
The break-even point is the sales level at which business income covers business costs for the period, before creating a surplus for the owner.
First sale
A first sale is the first completed paid transaction with a real customer, showing that someone will exchange money for the service you offer.
First-sale runway
First-sale runway is the time your startup cash can support essential business costs until the first realistic customer payment is expected to arrive.
Cash buffer
A cash buffer is business money kept uncommitted for cost overruns, delayed customer payments and necessary expenses missing from the original plan.
Emergency fund
An emergency fund is personal money reserved for essential household shocks and kept outside the cash available for starting or running the business.
Decision card
A StartupCostCheck decision card is a shareable summary of your launch decision, runway, planned cuts, main red flags and one next step.
Side business budget
A side business budget is the spending limit for testing a business alongside existing income while keeping household money and core bills separate.