What is a "burn" rate?

1. The rate at which a start-up company burns through its customers

2. The rate at which this test is burning through your patience

3. The rate at which revenues increase over time

4. The rate at which a start-up company burns through its capital

How far out into the future should pro-forma financial statements go and for what reason?

1. The length of time for pro-forma financial statements is really up to the individual entrepreneur.

2. Three years if they are grounded in defensible logic.

3. One year because no one can predict the future beyond that.

4. Five years because investors want to see that you are serious and good at predicting future revenues and expenses.