Lesson 35 of 1550
Managing Cash Runway as a Bootstrapped Teen Founder
How to track burn, extend runway, and avoid the 'out of money next Tuesday' moment that kills first-time founders.
Lesson map
What this lesson covers
Learning path
The main moves in order
- 1The runway discipline
- 2runway
- 3burn rate
- 4bootstrapping
Concept cluster
Terms to connect while reading
Cash kills more teen startups than bad products do. If you're bootstrapping with part-time job money or a small angel check, knowing exactly how many months you have left is non-negotiable.
Section 1
The runway discipline
- Track cash-in, cash-out, and bank balance every Friday — spreadsheet or Digits
- Runway = cash on hand ÷ net monthly burn (not gross spending)
- Under 6 months: start cutting or raising. Under 3: emergency mode
- Separate fixed costs (infra, tools) from variable (ads, inference) — cut variable first
- Keep a personal-vs-business firewall: never use the company card for pizza
Most teen founders under-count their burn because they forget about annual subscriptions and parental 'loans.' Write every dollar down, even the awkward ones.
Code example
# Runway cheat sheet
Cash on hand: $8,400
Monthly revenue: $1,200 (MRR)
Monthly costs:
Hosting/infra $180
AI API $340
Tools (Linear...) $90
Part-time help $600
Total $1,210
Net burn: $1,210 - $1,200 = $10/mo
Runway: essentially infinite IF MRR holds
Stress test: MRR drops 30% -> burn = $370/mo -> runway = 22 monthsKey terms in this lesson
Good looks like knowing your runway to the week, never being surprised by a bill, and hitting 'default alive' — where MRR covers burn — before your savings run out.
End-of-lesson quiz
Check what stuck
15 questions · Score saves to your progress.
Tutor
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