03/11/2026
A business can be growing and still run out of cash faster than expected. The key is knowing the difference between gross burn—the cash going out—and net burn, the monthly shortfall after income is counted. With a simple runway calculation, a company holding AED 2 million and burning AED 200,000 monthly has about 10 months to reach its next milestone. But what matters most isn’t just how quickly cash is spent—it’s whether the spending plan can last.
📖 Read more: https://bhmjassociates.com/understanding-your-companys-burn-rate-and-cash-use/