How could your growth call for more cash?
Berkonomics
APRIL 24, 2025
It sure is not intuitive. Here we must do a little math calculation together to make a point. Even if your business collects a full years revenue up front, you are still going to get hit with this. Heres the math and a wake-up call: Assume that your gross margin from sales is 50% for ease in calculation. Assume 30 days to collect receivables from completed work, and 30 days to complete the work.
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