Revenue grew 40%. That’s why the cash ran out.

Profitable growth still has to be paid for in advance, and the bill usually arrives about two months after the month you were proudest of.

By Steve 5 min read
Abstract bridge artwork for Revenue grew 40%. That’s why the cash ran out.

A business books its best quarter in three years. Margins hold. Nothing has been discounted. And ten weeks later the owner is deciding which supplier can be pushed a fortnight and whether payroll clears without touching the overdraft. The instinct is to look for a leak: a bad debt, a cost that crept, someone’s expenses. Usually there isn’t one. The cash gap is not a symptom of something going wrong. It is the arithmetic of something going right, and it is entirely predictable in advance if you know which numbers…

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