How Big is the Hole, and How are we Going to Fill it?

In other words, how big is the financial deficit and what plan can we devise to erase it? The size of “the hole” is similar to the burn rate, but not exactly the same thing. The burn rate can be either a current or projected cash depletion rate. The size of “the hole” is an estimate of how much sales, income or cash is needed to solve a problem or potential crisis. Such a hole was likely created by cash depletion or other unexpected event. It can also apply quite nicely to production, shipping and other areas. If you miss production numbers, how big is the hole and how will you fill it? You may have to shift production to another plant. (See also: burn rate and runway.)

Use: “Although the company is quite profitable, the pending asbestos litigation forced everyone to ask ’How big is the hole, and how are we going to fill it?”