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Business problems/Cash

The owner’s question

“Will the money be there when I need it?”

Profit is an opinion formed once a month. Cash is a fact that arrives every week. Profitable businesses run out of money on a Tuesday because a quarterly bill landed next to a payroll run — and the monthly accounts never showed it coming.

What you are looking at

A constructed business: $150,000 a month, growing 2%, customers paying in 45 days, payroll every second week and a $35,000 quarterly bill due in week 6. Comfortably profitable on paper.

Change anything on the left — especially the two sliders nobody thinks of as cash decisions: growth and days to get paid.

How this went

How an engagement runs, in five steps.

The business below is constructed so its figures can be shown openly. The sequence, the files requested and the deliverables are exactly what a real engagement involves.

1
The problem they came with

Growing 2% a month, profitable on paper, and the owner kept being caught out by weeks where the account looked frighteningly empty. The monthly accounts never showed it coming.

2
What they sent

The aged debtors list, the open invoice list with terms, the payroll calendar, a list of committed costs and standing orders, and the current bank balance. Five files, all exports.

3
What they got back

What is on this page: thirteen weeks of cash projected week by week, the exact week that gets tight, the shortfall against their own safety floor, and every available option priced against it.

Everything below this section is that analysis, live. Change any assumption and every figure and conclusion moves with it.

4
What they did about it

In the example: one quarterly payment moved, chasing started at day 30 instead of day 60, and a hire delayed by six weeks. About $50,000 of headroom, without borrowing anything.

5
And the honest part

This page is roughly 5% of that engagement — the slice that can be published, because the business is invented. The rest is at the bottom of this page.

What a real engagement hands you

Not a web page. Working documents built on your own figures, in whatever form is easiest to actually use:

  • A written findings report — what was found, what it costs, what to do, with every calculation shown
  • Charts and tables built for the specific decision, not a standard template
  • The underlying schedules, so anyone on your side can check or take over the work
  • Interactive versions where a decision has assumptions worth testing yourself
  • PDF and Word files you can forward to a bank, a partner or your accountant
  • A ranked action plan with an amount, an owner and a date against each item

All of it on your real data, and yours to keep.

Lowest point
Weeks below your floor
of 13
Shortfall
to stay above the floor
Cash at week 13
Runway
Stuck in unpaid invoices

Cash in the bank, week by week

13 weeks
Cash balance Without the new people Your safety floor
◆ What this means
5% of a cash engagement

This runs on four assumptions and one smooth growth rate. A real business has lumpy invoices, customers who pay differently from each other, and commitments already in the diary.

The other 95% is built around your business

  • Built from your actual invoice list and each customer’s real payment behaviour, not one average
  • Your payroll calendar, tax dates, loan repayments, insurance and rent — on the days they genuinely fall
  • Committed purchase orders and supplier terms you have already agreed
  • Seasonality, and what the same thirteen weeks looked like last year
  • Base, downside and upside versions, so you know what to watch for rather than what to hope for
  • The specific actions available to you, ranked — and who has to make each call
  • Kept current as things change, so it stays a decision aid rather than a one-off exercise

The full Planning & Forecasting service