Chapter 2

Why does selling more leave me shorter on cash?

Bán càng nhiều, sao tiền càng thiếu?

The chapter's question

How many days before customers pay me do I have to pay out?

Big idea

The gap between paying suppliers and customers paying you is the capital you are forced to have.

In this chapter

  1. Part 2.1

    Days to Pay Suppliers

    How many days do I take to pay for goods?

  2. Part 2.2

    Days to Get Paid

    How many days do customers really take to pay me?

  3. Part 2.3

    The Gap in Days

    How many days apart are those two numbers?

  4. Part 2.4

    Capital That Gap Requires

    How much cash must that gap force me to keep on hand?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Where the Money Is is free to read right here.

Read in Conan School

Chapters of Where the Money Is

  1. 1.How does a profitable business still run out of cash?
  2. 2.Why does selling more leave me shorter on cash?
  3. 3.When sales fall, do my costs follow?
  4. 4.Is cost-plus pricing safe, or just self-limiting?
  5. 5.Twenty numbers, or just the one that matters?