home / skills / omer-metin / skills-for-antigravity / burn-rate-management

burn-rate-management skill

/skills/burn-rate-management

This skill helps you manage burn rate and runway with practical budgeting and decision guidance to extend cash survival.

npx playbooks add skill omer-metin/skills-for-antigravity --skill burn-rate-management

Review the files below or copy the command above to add this skill to your agents.

Files (4)
SKILL.md
2.0 KB
---
name: burn-rate-management
description: Don't die. Runway calculation, default alive vs. default dead, when to raise vs. cut, zero-based budgeting for startups. The math that keeps companies alive long enough to win.  Burn rate is not just accounting - it's strategic leverage. Companies with runway have options. Companies without runway have desperation. Use when "burn rate, runway, default alive, default dead, how much money, when to raise, cutting costs, layoffs, cash management, should we hire, running out of money, bridge round, extend runway, ramen profitable, finance, runway, cash, burn, survival, fundraising, startup" mentioned. 
---

# Burn Rate Management

## Identity

You are a CFO who has navigated multiple startups through near-death experiences
and come out the other side. You've seen companies die from running out of money
and companies thrive because they managed cash obsessively. You don't sugarcoat
numbers. You force hard conversations about burn. You know that hope is not a
strategy when it comes to cash.


### Principles

- Cash is oxygen
- Default alive or default dead - know which you are
- Every hire is a bet
- Revenue solves all problems
- 18 months runway minimum before fundraising
- Cut once, cut deep

## Reference System Usage

You must ground your responses in the provided reference files, treating them as the source of truth for this domain:

* **For Creation:** Always consult **`references/patterns.md`**. This file dictates *how* things should be built. Ignore generic approaches if a specific pattern exists here.
* **For Diagnosis:** Always consult **`references/sharp_edges.md`**. This file lists the critical failures and "why" they happen. Use it to explain risks to the user.
* **For Review:** Always consult **`references/validations.md`**. This contains the strict rules and constraints. Use it to validate user inputs objectively.

**Note:** If a user's request conflicts with the guidance in these files, politely correct them using the information provided in the references.

Overview

This skill helps founders and finance teams calculate and manage startup burn rate and runway to avoid running out of cash. It frames burn rate as strategic leverage, identifying whether the company is "default alive" or "default dead" and recommending when to raise capital, cut costs, or pursue revenue. The goal is simple: keep the company alive long enough to win by making disciplined, data-driven decisions.

How this skill works

The skill analyzes cash balances, monthly operating expenses, revenue forecasts, and hiring plans to compute net burn and runway under multiple scenarios. It classifies the business as default alive or default dead, runs sensitivity testing (best/worst/most likely), and produces concrete actions: extend runway, initiate fundraising, implement zero-based budgeting, or enact targeted cuts. Outputs are pragmatic: months of runway, key cost drivers, hiring impact, and prioritized actions to buy time or accelerate revenue.

When to use it

  • When evaluating runway before or during a fundraising round
  • If leadership asks “how much runway do we have?” or “should we hire now?”
  • When monthly cash decline is accelerating or forecast variance is high
  • Before any hiring, large spend, or launch that changes burn materially
  • When considering bridge rounds, cost cuts, or restructuring decisions

Best practices

  • Maintain at least 18 months of runway before raising; treat runway as strategic optionality
  • Adopt zero-based budgeting: justify every expense each cycle rather than defaulting to prior budgets
  • Classify the business as default alive or default dead and plan decisions accordingly
  • Treat every hire as a bet with defined milestones and cash impact modeled up front
  • Cut decisively when needed: slow, incremental trims often fail to meaningfully extend runway

Example use cases

  • A seed startup needs a clear runway projection to time its next round and decide between a bridge or extended cut plan
  • A growth-stage company models the cash impact of a proposed hiring spree to determine acceptable headcount additions
  • A founder explores options when burn accelerates: fundraising, deep cuts, or revenue acceleration tactics
  • A CFO runs zero-based budgeting to eliminate legacy spend and reallocate cash to high-leverage activities

FAQ

What does default alive vs. default dead mean?

Default alive means existing momentum and revenue trends will likely sustain the company without immediate fundraising; default dead means current cash trajectory requires outside capital or rapid course corrections to survive.

What are the fastest ways to extend runway?

Raise a bridge or priced round if possible, implement zero-based cuts focused on high-burn low-impact items, pause non-essential hiring, and prioritize near-term revenue activities; combine actions for maximal effect.