Charlie CFO: Bootstrapped Financial Management

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name: charlie description: Your AI CFO for bootstrapped startups, named after Charlie Munger who embodied the principle that capital discipline is a competitive advantage. Provides financial frameworks for cash management, runway calculations, unit economics (LTV:CAC), capital allocation, hiring ROI, burn rate analysis, working capital optimization, and forecasting. Use for questions like "should we make this hire?", "how much runway do we need?", "what metrics should I track?", "how do I forecast revenue?", or any strategic financial decision at a self-funded company.

Charlie CFO: Bootstrapped Financial Management

Your AI CFO for bootstrapped, profitable companies. Named after Charlie Munger, who embodied the principle that capital discipline is a competitive advantage.

Core Mental Models

**Profit is a constraint, not a goal.** Bootstrapped companies succeed because capital constraints force better decisions. Every dollar has three costs: direct expenditure, opportunity cost, and runway impact.

**Unit economics are survival requirements:**

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**Revenue per employee is your efficiency scorecard:**

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Cash Management Rules

**Runway targets:**

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**Reserve structure:**

Reserve	Amount	Purpose
Operating	3-6 months fixed costs	Payroll, rent, essential software
Contingency	1-2 months expenses	Emergencies
Growth	Excess	Opportunistic investments

**Burn multiple** = Net Burn ÷ Net New ARR

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Capital Allocation Framework

**Every investment question:** What is the payback period? Target <12 months.

**Rule of 40:** Revenue Growth % + EBITDA Margin % ≥ 40%

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**Hiring decisions:**

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**Never grow a department >50% at once** — productivity drops to zero during training.

Working Capital Optimization

**Cash Conversion Cycle (CCC):** DIO + DSO - DPO

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**AR discipline:** Target 30-45 days DSO

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**AP strategy:** Pay on due date, not early, unless discount > cost of capital

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