Runway Planning, Cash Management & Cash Reduction

During the current uncertain times when there is little clarity about demand and supply recovery, the need of the hour is to ensure that your company maximizes cash runway. One of the steps for that is cost management. The steps you take can vary, depending on whether you have <12 months runway, between 12-24 months runway and >24 months runway


Through the lockdown most businesses could see revenues going down to almost zero and even post that the recovery curve may be a 'U' shaped one vs a 'V' shaped one.

It may be prudent to stop all marketing expenses till business comes back to 'close-to-normal'. When things start to pick up, increase marketing slowly, keeping CAC low. Ramp it up as things become more stable.


Use the opportunity to reduce leases that might have been non/low performing. Use of Force Majeure may be required if it’s part of your agreement.

<12 months runway

12-24 months runway

G&A (including technology costs)

Working Capital

<12 months runway

12-24 months runway


It is worth considering to stop all new capital investments and focus on the current business. Even if there is capital work-in-progress, pause the work and pick it up again when demand recovers.


It’s all hands on deck. Proactively involve functional leaders to ideate and execute these items. Communicate clearly to the entire organization so there is no confusion or water cooler conversations. These can only lead to more speculation and anxiety within the organization.

Be decisive and take actions in one single stroke – it allows people to feel secure about their future, knowing that going forward it’s BAU (or as close to it as it can be at this time)

<12 months runway

12-24 months runway

>24 months runway

Advice for Founders