Picture this: you're two weeks into a slow stretch. Fewer calls coming in, a couple of appointments that didn't rebook, and you're checking your bank account more than you'd like to admit. You know revenue is down, but you're not sure exactly how much runway you have left — or when it's actually time to worry vs. time to wait it out.

That uncertainty is exhausting. And it's completely solvable.

What days cash on hand actually means

Days cash on hand is exactly what it sounds like: the number of days your business could keep running — paying its bills, covering its expenses — if zero new revenue came in starting today.

Think of it as your business's oxygen saturation. When it's high, you have breathing room to make decisions calmly. When it drops too low, everything gets harder to manage.

The formula:

Current cash balance ÷ Average daily expenses = Days cash on hand

So if you have $9,000 in your business account and your average monthly expenses are $3,000 (about $100 per day), you have 90 days of runway. That's comfortable. If you have $1,500 and your daily burn is $100, you have 15 days. That's time to act.

What a healthy number looks like

There's no single right answer, but here's a useful starting guide for service-based businesses:

• Under 15 days: too tight — prioritize getting cash in immediately
• 15–30 days: manageable, but vulnerable to one unexpected expense
• 30–60 days: solid cushion for most small businesses
• 60+ days: strong position — you can make growth decisions with confidence

Most new business owners don't know their number at all. They have a general feeling of "things are okay" or "things feel tight" — but feelings aren't a plan. Your days cash on hand gives you something real to work with.

What to do next

• Open your business bank account right now and note your current balance
• Look at last month's total expenses and divide by 30 to get your average daily burn
• Do the math: balance ÷ daily burn = your runway in days
• If you're under 30 days, that's your first priority this week: invoice sooner, follow up on any outstanding payments, or fill gaps in your schedule

This is the kind of number we work through together in Success Metrics coaching — quick to calculate, and immediately useful for making real decisions. Come find us at mysuccessmetrics.com.