How fast can you afford to grow?
Growth consumes cash before it produces it. Every new sale ties up money in receivables and inventory first. This tool shows the growth rate your own cash flow can fund, and how much outside cash a faster target would need.
Your business
Your cash cycle
Your plan
Your cash can fund about 32.4% growth a year. Your 60% target needs $33,973 a year of outside cash on top of what the business throws off. Line it up before you push.
- Cash per $1 growth
- 12.3c trapped
- Retained cash / yr
- $40,000
- Outside cash at 60%
- $33,973
| Change | Growth you can fund |
|---|---|
| As entered | 32.4% |
| Collect 15 days faster | 48.7% |
| Hold 15 days less stock | 40.6% |
| Pay suppliers 15 days later | 40.6% |
| Lift the margin 2 points | 48.7% |
| Take $10,000 less a year | 40.6% |
Each row changes one thing and holds the rest. Collecting faster and paying later are the cheapest levers: they cost nothing but a conversation.
Growth consumes cash before it produces it. This is the rate your own cash covers; beyond it you need financing lined up before you grow, not after. Based on the self-financeable growth framework (Churchill and Mullins, HBR 2001), simplified to annual figures.
A planning estimate, not financing advice. Model the real numbers with your accountant. Map the months in the cash flow forecaster →