in a business , what is the cash burn rate ?

every business needs capital / money to operate

there are fixed expenses every month

  • rent of the premises
  • utilities ( electricity / water bills )
  • salaries of the employees
  • other operating expenses – raw material , etc

you add up all these expenses , and you will get your cash burn rate

the higher the reserves ( a good multiple of cash burn rate ) , the better position your business is in.

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