Chapter 5

Why is borrowing when the shop is short so risky?

Vay tiền lúc quán đang hụt, sao lại nguy hiểm nhất?

The chapter's question

If I borrow, which cash flow will repay it?

Big idea

Borrowing to fix something broken is dangerous; borrowing to multiply something that works is different.

In this chapter

  1. Part 5.1

    What the Loan Is For

    Will this loan create new cash flow or only fill a hole?

  2. Part 5.2

    Monthly Repayment Share

    What share of my current profit goes to the monthly repayment?

  3. Part 5.3

    Kitchen or Front of House

    Where should the next hundred million go?

  4. Part 5.4

    Signs to Stop

    Which number would tell me it is not yet time to expand?

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?