Chapter 2

How can a profitable shop still run out of cash?

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

The chapter's question

If I made a profit this month but still ran out of cash, where did the money go?

Big idea

Restaurants die from running out of cash, not from running out of profit.

In this chapter

  1. Part 2.1

    The Tightest Day

    On which day of the month is my account at its lowest?

  2. Part 2.2

    Payables and Receivables

    Whom do I owe, and who owes me?

  3. Part 2.3

    Deposits and Prepaid Rent

    How much of my money is tied up in deposits?

  4. Part 2.4

    How Much Buffer

    If revenue stopped for three weeks, how long could I hold out?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Cash In, Cash Out is free to read right here.

Read in Conan School

Chapters of Cash In, Cash Out

  1. 1.Does a small shop really need financial statements?
  2. 2.How can a profitable shop still run out of cash?
  3. 3.Is the money in the till mine, or the shop's?
  4. 4.Busy today, but busy enough to break even?
  5. 5.Why is borrowing when the shop is short so risky?