Specialized calculator · Agency / Consulting
Runway Calculator for Agencies & Consultancies
Agencies have a unique runway profile: highly variable with utilization and client quality. Calculate yours with sector benchmarks.
Calculate your runway
The preloaded values are a typical example for Agency / Consulting. Replace them with your own.
Net burn rate
Runway
Good cushion. Execute and plan your next milestone.
Typical example for Agency / Consulting
A 10-15 person agency with $250k in the bank, $90k in monthly expenses, and $75k in stable revenue has a runway of 16-17 months. Lose a key client and that runway can drop to 6-8 months fast.
Healthy runway
12-18 months (heavily dependent on client concentration)
Burn typically concentrated in
60-70% on delivery-team salaries
Typical cost breakdown for Agency / Consulting
Salaries (designers, devs, account managers)
The biggest recurring expense
Freelancers and contractors
Flexibility, but also risk
Software and tools
Figma, Adobe, project management, hosting
Office and operations
Rent, utilities, in-person meetings
Sales and business development
Conferences, networking, proposals
Key metrics you should monitor
- Team utilization >70%
- Margin per project >35%
- Top 3 client concentration <40%
- DSO (days to collect) <45 days
- Pipeline 2-3x monthly billings
Common mistakes when calculating runway for Agency / Consulting
- Not separating one-off project revenue from recurring revenue
- Underestimating the impact of losing a large client
- Failing to plan for gaps between closed projects
- Hiring off the pipeline instead of signed contracts
Frequently asked questions
How does client concentration affect runway?
In agencies, three metrics move together: runway, pipeline, and concentration. If your top 3 clients are more than 40% of billings, your real runway is half the calculated figure — because losing any one of them sinks you.
Should I hire more when my pipeline is strong?
Never hire off pipeline alone. Hire when you have signed contracts that justify it, and always keep a cushion of current-team utilization above 70%. Hiring too early is the #1 cause of agencies going under.
Runway always up to date, without touching Excel
Hayes Strategic calculates your runway, P&L, and cash flow automatically from your transactions. Built for Agency / Consulting.
Explore the calculator for other industries: