Jason M. Lemkin breaks down three financial plans for founders: C10 is a stretch goal, C60 is your main operating budget, and C90 keeps you alive if things go wrong. Each plan corresponds to your confidence level that the business will work.
I think I noticed a pattern. You know, I wrote this years ago and then have updated it of like, the three plans you need to make as a founder. I call them. No one's really ever copied this nomenclature, but I call them C10, C60, and C9. And C is the confidence factor, and C10 is the big plan that there's a 10%, like a 2% chance you're going to hit it. 10%, there's a chance. The 60 is probably where your core plan should be. We have a 60% chance thinking we can do it. That's how you build your core model. In my experience, the 10 becomes your stretch plan, the 60 becomes your base, and the 90 is the quiet plan you use to not run out of money. That's how you manage your burn rate.
