burn rate
Spending velocity metric
Burn rate is how quickly an organization spends money, typically measured monthly.
The term comes from startup culture, where companies operate at a loss while building toward profitability: At our current burn rate, we have eighteen months of runway.
A high burn rate means cash reserves deplete quickly.
The concept applies wherever finite resources are consumed over time.
- costRequired payment amount
- runwayPaved path for planes
- cashflowNet money movement
- liquidityConvertibility to cash
- sunk costsIrrecoverable past expenditures
monthly expenses · fire sale · zero hour · sustainability · venture capital · Series A · investment · finance · ignition · pyrolysis · startup · funding · rocketry · propellant · countdown · rocket fuel · combustion · spending
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- entrepreneurshipentrepreneur, startup, founder, co-founder, cofounder
- buzzwordssynergy, leverage, paradigm, stakeholder, scalable
- office jargonsynergy, circle back, touch base, deep dive, action item
- ratesroyalty, per diem, interest rates, exchange rates, percentage
- project managementproject, project manager, task, tasks, deadline
burn raterevenue generation
Creating streams of income
savings rate · revenue stream · growth rate · receipts · revenue growth
burn rateprofitability
Capacity to generate gain
break-even · solvency · financial independence · wealth building · in the black
burn ratecapital preservation
Safeguarding original investment value
frugality · fiscal restraint · austerity · thrift · belt-tightening
burn, rate, burning, ratio, burnt, burned, rating, burns, burner