Runway and RoAS
- Calculate your Runway
- Determine your ROAS
- Simulate your growth with Karmen financing
- Calculate your Runway
- Determine your ROAS
- Simulate your growth with Karmen financing
Runway and ROAS are important financial indicators for managing your business. Not only do they enable you to assess your company's financial health, but they also help guide your strategic decisions to optimize profitability. Let's see how these two metrics can help you make informed decisions, and how you can optimize them to maximize your company's growth.
The Runway is one of the most important indicators of your company's liquidity. It represents the time you have left before you run out of cash, taking into account your monthly expenses. It's a true dashboard of your financial security.
In an economic climate where unforeseen events are frequent, knowing how long your business can continue to operate without new financing is crucial. It enables you to anticipate liquidity needs and avoid crisis situations.
ℹ️ For example, if you have €100,000 in cash and monthly expenses of €20,000, your Runway is 5 months. This simple calculation gives you an accurate estimate of how long you have before you need to take action such as raising funds, reducing expenses or increasing income.
By applying this formula, you can easily obtain an estimate of your financial leeway. This enables you to better plan your actions to guarantee business continuity.
Proactive cash management is essential to extend your Runway. Effective cash management enables you to identify levers for reducing expenses or generating more income. For example, optimizing your inventories, reducing fixed costs or negotiating longer payment terms with your suppliers can all contribute to extending your Runway.
At Karmen, we offer financial solutions to help you extend your Runway. With our flexible loans, you can maintain your cash flow while investing in your business priorities, such as marketing or product development.
Return on Ad Spend (ROAS) is another key indicator that measures the effectiveness of your advertising investments. It tells you how much money you're making from your advertising spend. A high ROAS means that your marketing campaigns are profitable, while a low ROAS may indicate that you need to readjust your advertising strategies.
ROAS enables you to assess the profitability of your marketing and advertising campaigns. With this figure in mind, you can adjust your strategies to improve the performance of your campaigns. For example, if you invest €1,000 in advertising and generate €4,000 in sales, you have a ROAS of 4, which means that for every euro spent on advertising, you generate €4 in sales.
This metric helps you determine the effectiveness of your advertising campaigns. A ROAS greater than 1 means you're getting more revenue than you've invested, but the aim is to achieve a ROAS high enough to make your investment worthwhile.
To maximize your ROAS, there are several levers you can pull:
Best practices are essential to ensure optimal performance of your marketing investments. The best SaaS KPIs enable you to regularly monitor performance and adjust your actions accordingly.
Financial planning is a key factor in managing your Runway and ROAS. Rigorous forecasting enables you to anticipate financing needs, better manage your investments and make informed choices to support your company's growth.
One of the first steps in financial planning is to anticipate future cash requirements. This allows you to avoid surprises and make financial decisions with peace of mind. A regular cash flow forecast lets you know whether you'll need to raise funds or cut costs to preserve your Runway.
Managing working capital is essential to maintaining good financial health. Good digital marketing budget management allows you to effectively manage your cash flow and adapt your spending according to the performance of your campaigns.
Karmen offers you several solutions to optimize your Runway and ROAS. We offer flexible short-term loans and financial expertise to help you make the best decisions for your company's growth.
With Karmen Loanwe offer loans ranging from €30K to €5M, with terms from 1 to 24 months. These loans are specially designed for :
Our calculator gives you a detailed analysis of your financial metrics:
At Karmen, we go beyond financing. We can also help you analyze your performance and advise you on how to optimize your results. Our team of experts is here to help you maximize your profits while preserving your cash flow.
Managing the Runway and ROAS is essential to the sustainable growth of your business. These metrics enable you to make informed decisions and optimize your investments to maximize profits. With Karmen, you can benefit from customized support to improve these key indicators and build controlled, sustainable growth.
Contact us today to find out how we can help you optimize your financial performance and propel your business to new heights.
