S4 E16: Understanding Startup Burn Rate (And Why You’re Probably Wrong)

Most new founders think they understand their burn rate. They don’t. In this episode of The Biz Show, Barry and Lisa break down one of the most misunderstood metrics in business and why getting it wrong can quietly kill your company. Because burn rate isn’t just how much you spend… it’s how long you survive. In this 30-minute business primer, we cover: • The real definition of burn rate (gross vs net) • Why most founders calculate it incorrectly • The difference between profit and actual cash flow • How burn rate determines your runway • How to reduce burn without killing growth • What investors look for when evaluating your burn If you’re running a startup, scaling a business, or planning to raise capital, understanding your burn rate correctly is not optional — it’s critical. Watch on YouTube or listen on your preferred podcast platform. Subscribe to The Biz Show for practical, no-fluff insights on building, scaling, financing, and protecting your business.