---
id: "action-calculate-burn-rate"
type: "action-item"
source_timestamps: ["§ 3. Do I need to set up my own business?"]
tags: ["finance", "risk-management"]
related: ["framework-fractional-business-pillars"]
action: "Calculate your monthly cash burn rate to understand your financial runway during slow periods."
outcome: "Improved financial resilience and reduced anxiety during fluctuations in client work."
speakers: ["Joy Batra", "Dorie Clark"]
sources: ["ecosystem"]
sourceVaultSlug: "hbr-seg-ecosystem"
originDay: 11
articleStem: "hbr-foci-63-fractional-work-questions"
sourceUrl: "https://hbr.org/2026/04/5-questions-leaders-should-ask-before-turning-to-fractional-work"
sourceTitle: "5 Questions Leaders Should Ask Before Turning to Fractional Work"
---
# Calculate Cash Burn Rate

**Action:** As part of the *Finance* pillar of [[framework-fractional-business-pillars]], calculate your **personal and business cash burn rate** — a clear mathematical read on *how long you can survive during slow periods* between client engagements.

**Expected outcome:** Improved financial resilience and reduced anxiety during fluctuations in client work.

A practical hedge that complements the boundary discipline of [[concept-capacity-buffering]]; presumes [[prereq-basic-business-literacy]].