Chapter 4

How does a profitable seller still run out of cash?

Có lãi mà vẫn cạn tiền, chuyện đó xảy ra thế nào?

The chapter's question

How many days does my cash leave before orders bring it back, and which week does the account hit bottom?

Big idea

Profit is booked when the order is delivered, but money goes out long before and comes back long after. Small sellers run out of cash before they run out of profit, so money must be watched week by week, not month by month.

In this chapter

  1. Part 4.1

    The days cash travels ahead of goods

    How many days pass between paying for stock and the sales money reaching my account?

  2. Part 4.2

    An eight-week cash calendar

    Over the next eight weeks, which week will my account be at its lowest?

  3. Part 4.3

    What a sale asks you to advance

    How much cash does a big sale require up front, and how long until it comes back?

  4. Part 4.4

    A cash buffer for a bad week

    What minimum must my account always hold so that one bad week doesn't stop the selling?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of The Seller Handbook: One Order, One Warehouse, One Customer is free to read right here.

Read in Conan School

Chapters of The Seller Handbook: One Order, One Warehouse, One Customer

  1. 1.So many orders, so why is there no money?
  2. 2.Is a full warehouse wealth, or a slow leak?
  3. 3.Do I own my customers, or just rent them?
  4. 4.How does a profitable seller still run out of cash?
  5. 5.Why does every month feel like starting from zero?