Analyze Cash Runway and Model Spend-Cut Options

Runway is simple arithmetic until you start asking 'what if we cut X?' — then it becomes a set of trade-offs you have to reason about, not just calculate. This prompt does both: it computes your current runway and zero-cash date, then models how specific spend cuts change that picture and what each one costs you operationally. The trade-off framing is the point. Any cut extends runway; the question is which cuts buy the most months for the least damage to growth. By asking for the qualitative cost of each option and a recommended sequencing, the prompt helps you build a plan that hits a target runway while protecting the things that actually grow the business. It also names the one cut to avoid, which is often more useful than the cuts to make. All projections are estimates based on the burn you provide, so feed it an honest net burn and real cash position. This is a thinking aid for hard decisions, not a substitute for your board's judgment.

What you can expect back

Runway analysis — Northwind Labs (estimates):

Current: $1.4M / $160K net burn ≈ 8.8 months, zero-cash around mid-Feb 2028 (the July tax outflow and August prepayment roughly offset).

Cut options:
- Pause two open roles (-$30K): burn → $130K, runway ≈ 10.8 months. Trade-off: slower roadmap, but no impact to current team or revenue.
- Drop the $15K tool: burn → $145K, runway ≈ 9.7 months. Trade-off: minimal, since it's underused.
- Cut paid acquisition (-$25K): burn → $135K, runway ≈ 10.4 months. Trade-off: directly slows new pipeline and growth.

Recommended sequencing: drop the tool first (near-zero cost), then pause the open roles. Combined burn ≈ $115K → runway ≈ 12.2 months. To reach 18 months you'd need either deeper cuts or new revenue/financing — these three alone won't get there without touching growth.

Avoid: cutting paid acquisition last, since it's the lever most tied to revenue.

Illustrative example — your results will vary by tool and inputs.

Get sharper results

• 01Use net burn, not gross — runway math is only right if revenue is netted against spend.
• 02List cuts with both their savings and what they protect or harm; the sequencing recommendation depends on that trade-off, not just the dollars.
• 03Include lumpy items like tax payments; they shift the zero-cash date even when monthly burn looks steady.
• 04Be honest if the cuts can't reach your target — it's better to learn that here than to assume a plan that doesn't close the gap.

Adapt it for your case