How do I calculate my true survival runway?

Take your current bank balance and divide it by your average monthly net burn. However, to be safe, subtract 15% from that total to account for unforeseen emergencies. Real survival isn't about the best-case scenario; it's about knowing when the lights actually go out. According to the British Business Bank, maintaining a three-to-six month buffer is standard for resilience.

Should I tell my team how bad the cash situation is?

Yes. Founder-led transparency builds trust. If you have less than four months of runway, your team deserves to know the stakes. High-performers generally stay to help solve the problem if they feel respected. Give them the context, the plan to fix it, and clearly defined targets to hit so they can contribute to the turnaround.

Is it worth taking high-interest debt to bridge the gap?

Only if you have a guaranteed revenue event or a signed term sheet within 30 to 60 days. Debt compounds the pressure of a cash crunch. The British Business Bank notes that over-leveraging during a downturn is a leading cause of insolvency. If the debt doesn't buy you enough time to reach profitability, it is just a slow-motion exit.

What is the first thing I should cut when cash is tight?

Variable marketing spend that isn't showing a clear return on ad spend (ROAS) of at least 2:1. After that, look at non-essential software and discretionary perks. Every pound saved is a pound that doesn't need to be raised or earned under pressure. Be ruthless. It is easier to add perks back later than to hire back staff you let go.

Can I delay HMRC payments to manage my cash flow?

You can, but do not do it silently. HMRC offers a 'Time to Pay' service for businesses struggling with cash flow. Ignoring tax obligations can lead to personal liability for directors. Contact them early to arrange a structured payment plan. This keeps your business compliant while providing the short-term breathing room needed to stabilize your core operations.

Short runway, still choosing

Cash crunch

Cash is tight, decisions are tighter. Choose the next move on purpose.

Make the next move

Pressure-test it in an hour

Use Grower to scope the bet, or book a call with us.

Talk to us

Got questions? Let's get specific.

Book a 30-minute call. We'll map your situation and show the fastest next step.

“Startups don't die when they run out of energy, they die when they run out of cash.”

— Paul Graham, Co-founder

FAQs

Next step

Ready to move?

Try Grower or book a call — whichever feels right.

TL;DR

Runway is your only metric that matters right now. If you don't know the exact date it ends, start there.
Cut deep and cut once. Drip-feeding layoffs or budget trims kills morale and drags out the inevitable.
Prioritize revenue-generating activities over long-term brand building. In a crunch, cash flow is the only oxygen.
Audit every recurring subscription and vendor contract. If it doesn't directly help you scale or survive, kill it today.
Communicate with radical transparency. Founders who hide the truth lose their best people when the news finally breaks.
Extend your runway by renegotiating payables and accelerating receivables. Cash in the bank beats a high valuation on paper.

Cash crunch

Pressure-test it in an hour

Got questions? Let's get specific.

FAQs

Ready to move?

Sources

Clients and partners we work with

Where we show up in the community

Standards we are independently certified against