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Financial Mastery

Investor question 29 of 50 · Costs, burn & runway

“What would you cut if the raise takes longer?”

Short answer: the investor is really asking do you have a plan B? Answer in three steps: (1) name specific costs and their monthly saving; (2) give the trigger date for the decision; (3) show the impact on runway.

What they're really asking

Do you have a plan B? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.

How to answer, step by step

  1. Name specific costs and their monthly saving.
  2. Give the trigger date for the decision.
  3. Show the impact on runway.

An example answer

If the Series A slips, we pause four hires and cut paid marketing in month 12. We'd still reach the Series A metrics, just later.

Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.

The answer that loses trust

Avoid

"We'll figure it out."

Where the proof lives

Before the meeting, find the number behind your answer. In our workbooks it lives in: Sensitivity Tables - Funding stress test. If you can open that tab and point to it, the follow-up question is easy.