Sign up to save your podcasts
Or
Share How To Scale Without Cash Flow Issues
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
How To Scale Without Cash Flow Issues
Quick question... how long does it take you to break even?
Whatever number you just thought of is probably wrong. Not because you're bad at math, but because you're only looking at one piece of a three-part equation. The number that actually determines whether scaling creates cash or destroys it is longer than you think. And once you see how to calculate it correctly, you start making completely different decisions.
In This Episode:
• Why "breaking even on acquisition" gives you a false picture of how long your cash is tied up, and the three-part calculation that tells you the real number
• How inventory terms alone can swing your Capital Return Velocity (CRV) by two months or more (and the specific move I made at Peak Biome that added two and a half months of working capital overnight)
• Why subscriptions can extend your CRV far beyond what your stick rate suggests, and how to check if yours is doing that
• The overlooked reason that improving contribution margin, Lifetime Value (LTV), or operational efficiency automatically shortens your CRV without touching a single inventory term or credit line
• How to calculate your CRV in about five minutes using three numbers sitting in your dashboard right now
Timestamps
0:00 - Why cash flow kills DTC brands
3:12 - What Capital Return Velocity actually is
7:45 - The three components of CRV
12:30 - Inventory: the fastest lever to pull
19:15 - Acquisition costs and hidden profit centers
26:40 - Overhead per customer and lean operations
32:10 - How improving any lever improves CRV
36:55 - How to calculate your CRV right now
Free Stuff
Want to see how your profit model stacks up? Try my free profit model analyzer and discover your fastest path to doubling your profit and cash flow: https://tools.scaleadvisors.com/pma
Get My Book
Love the podcast? You'll love my #1 best-selling book, The Scalable Profit Model, even more. Snag a copy for free at https://ScaleAdvisors.com/book.
Work With Me
If you're doing $1M+ and want my help growing faster with more profit and less stress, visit https://ScaleAdvisors.com/services
Get Some Good Karma
If you enjoyed this episode, please take a second and subscribe and leave a review. That helps spread the word and gets you some good karma.
View all episodes
By Jeremy ReevesQuick question... how long does it take you to break even?
Whatever number you just thought of is probably wrong. Not because you're bad at math, but because you're only looking at one piece of a three-part equation. The number that actually determines whether scaling creates cash or destroys it is longer than you think. And once you see how to calculate it correctly, you start making completely different decisions.
In This Episode:
• Why "breaking even on acquisition" gives you a false picture of how long your cash is tied up, and the three-part calculation that tells you the real number
• How inventory terms alone can swing your Capital Return Velocity (CRV) by two months or more (and the specific move I made at Peak Biome that added two and a half months of working capital overnight)
• Why subscriptions can extend your CRV far beyond what your stick rate suggests, and how to check if yours is doing that
• The overlooked reason that improving contribution margin, Lifetime Value (LTV), or operational efficiency automatically shortens your CRV without touching a single inventory term or credit line
• How to calculate your CRV in about five minutes using three numbers sitting in your dashboard right now
Timestamps
0:00 - Why cash flow kills DTC brands
3:12 - What Capital Return Velocity actually is
7:45 - The three components of CRV
12:30 - Inventory: the fastest lever to pull
19:15 - Acquisition costs and hidden profit centers
26:40 - Overhead per customer and lean operations
32:10 - How improving any lever improves CRV
36:55 - How to calculate your CRV right now
Free Stuff
Want to see how your profit model stacks up? Try my free profit model analyzer and discover your fastest path to doubling your profit and cash flow: https://tools.scaleadvisors.com/pma
Get My Book
Love the podcast? You'll love my #1 best-selling book, The Scalable Profit Model, even more. Snag a copy for free at https://ScaleAdvisors.com/book.
Work With Me
If you're doing $1M+ and want my help growing faster with more profit and less stress, visit https://ScaleAdvisors.com/services
Get Some Good Karma
If you enjoyed this episode, please take a second and subscribe and leave a review. That helps spread the word and gets you some good karma.