Specialized calculator · Professional Services
Runway Calculator for Professional Services
Firms, studios, and consultancies have a different financial profile from product startups. Calculate your runway with benchmarks for your sector.
Calculate your runway
The preloaded values are a typical example for Professional Services. Replace them with your own.
Net burn rate
Runway
Good cushion. Execute and plan your next milestone.
Typical example for Professional Services
A 12-person firm with $300k in the bank, $110k in monthly expenses, and $95k in revenue has a runway of 20 months. With stable, contractual revenue, the runway is more predictable than at startups.
Healthy runway
15-24 months at stable firms
Burn typically concentrated in
70-80% on senior salaries
Typical cost breakdown for Professional Services
Senior salaries (partners, associates)
Talent is the core asset
Administrative staff
Assistants, finance, reception
Office and operations
Rent in a central location, utilities
Technology and software
Sector-specific specialized software
Training and certifications
Investment in professional development
Key metrics you should monitor
- Utilization rate >75%
- Rising average hourly rate
- Client retention >80% annually
- Net margin >20%
- DSO <60 days
Common mistakes when calculating runway for Professional Services
- Not adjusting rates for inflation
- Over-hiring juniors you can't bill out
- Over-reliance on 1-2 large clients
- Underestimating the real cost of acquiring a new client
Frequently asked questions
How does the utilization rate affect runway?
A 10% drop in utilization can cut your margin from 25% to 15%, which shortens your runway significantly. Keep utilization above 70% as a rule of thumb.
What's a good runway for an established firm?
A firm with stable revenue should have at least 12-18 months of runway. If it also has clients on renewable annual contracts, the cushion can be smaller because revenue is more predictable.
Runway always up to date, without touching Excel
Hayes Strategic calculates your runway, P&L, and cash flow automatically from your transactions. Built for Professional Services.
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