Decision Hub

Cash, Liquidity & Survival Economics

Why profit is a theory, but cash is a fact. In a downturn, your balance sheet matters more than your P&L.

The Profit Illusion

Most founders manage by the P&L. But in a sticky-inflation environment, you can be profitable on paper and still run out of money. This is "growth insolvency."

The Cash Gap

If you pay suppliers in 20 days but get paid by clients in 60 days, growth kills you. The faster you grow, the deeper the hole.

Cash Out (Day 0) Cash In (Day 60)
The "Death Valley" Gap
Survival Tools

Runway Calculator

How long can you survive if revenue stopped tomorrow? This is your "Zero Revenue Days" metric.

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4.1
Months of Runway

The Liquidity Ladder

In a crisis, you must climb "down" the liquidity ladder. You trade long-term value for short-term cash.

L1

Operating Cash

Bank balances, getting clients to pay faster.

Cheapest
L2

Working Capital Debt

Overdrafts, trade finance. Cost is interest.

L3

Asset Sales

Selling equipment or inventory at a discount.

L4

Equity / Distressed Debt

Selling a slice of the company or taking predatory loans.

Most Expensive

Deep Dive Analysis

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Budget Gap Analysis
Strategy

Bridging the Budget Gap

Household versus Corporate Strategies. How successful families manage free cash flow differently than corporations, and what we can learn from both.

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