Spot a cash gap in a profitable order
Distinguish profit from the timing of cash receipts.
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The Strategist · fictional example
The situation
A fictional business starts with 200 currency units. It pays 500 for an order today and expects 800 from the customer in 30 days. Ignore other costs for this example.
Before you continue
What would you predict? Say it aloud or write a line on paper. Then compare your reasoning with the example.
Starting knowledge: Complete 'Work out what each sale contributes' or understand cost and revenue.
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