John Gafford

Yes.

They can work.

But when you made that pivot from one to the other to drop shipping, so how much runway did you have left?

Like, how much runway did you give yourself?

That's a great question.

Well, a lot of people fail in business because they don't understand burn rate and they don't understand runway.

Or that's what it is.

So it's based on time.

For those of you that are listeners that don't know those concepts, hopefully you all do.

Burn rate is the amount of money that the business is going to go through in any given period, a month, a quarter, whatever it is, without making a nickel.

If not one nickel comes in, this is just what it's going to cost to keep the lights on.

And then runway is how much cash you have and how many months of that you have.

Correct.

We would call it the personal life moles or months of life in my buck is what I call it.

But yeah, you need to understand that intimately and know because a lot of businesses don't make a dollar for a while.

And how long can you go?

And that's kind of the startup math is how long do I have before I run out of money?

And what is the delta comparison between that and how long I think it's going to take to actually start getting sales?

Correct.

And that is the math that is the make or break on any good startup.