StartupCostCheck Glossary
What is 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.
Why it matters
A budget is an estimate, while burn rate shows what is actually happening once the business starts. A faster fall than planned can reveal weak sales, missed expenses or purchases made too early. Tracking the trend gives you time to cut spending before the balance becomes urgent.
How to use it
- Record the opening and closing cash balance each month.
- Include money received as well as money paid out.
- Compare the observed rate with your planned monthly burn.
- Investigate any gap before repeating the next month's spend.
StartupCostCheck gives you the planned baseline to compare with your real cash movement. Run the free check again when actual costs replace early estimates.
Short definitions of the money words behind a safe business start: runway, burn, risk budget, what to buy now and what to delay.
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