Surviving the gap.
WHY IT IS DIFFICULT
Costs arrive before revenue, and monthly billing spreads revenue thinly.
WHAT THAT MEANS
A growing business can run out of money.
WHY GROWTH CONSUMES CASH
Each new customer costs to acquire now and repays over months.
WHAT ANNUAL BILLING PROVIDES
A year of revenue immediately.
WHY IT IS THE SINGLE MOST USEFUL LEVER
It converts a cash flow problem into a cash position.
WHAT TO OFFER FOR IT
A discount, which is cheaper than borrowing.
WHAT TO MODEL
Cash by month, including every fixed cost Timing of receipts, not invoices
WHY THAT DISTINCTION
Money received late does not pay salaries on time.
WHAT TO WATCH
Settlement delays from payment providers Customers paying late Costs in foreign currency
WHY THAT LAST ONE MATTERS HERE
Infrastructure and tooling are priced abroad while revenue may be local, and the gap moves against you.
WHAT REDUCES THAT EXPOSURE
Earning in the same currency as your largest costs, where possible.
WHAT TO KEEP
A cash buffer covering several months of fixed costs.
WHAT TO AVOID
Committing to fixed costs on projected revenue Hiring ahead of confirmed demand
WHAT TO REVIEW
The runway, monthly.
