DROPSHIPPING - THE CASH CYCLE MAP  (Chapter 7)

Map your own cycle with a REAL recent order and your actual processor
payout schedule.

  Day ____  You pay for advertising
  Day ____  A customer orders and pays your processor
  Day ____  You pay the supplier for that order
  Day ____  Supplier ships
  Day ____  Customer receives
  Day ____  Processor pays you, less any reserve
  -----------------------------------------------------------------
  Cash gap on this order: ______ days of full exposure
  (book example: ad + order day 0, supplier day 1, ships day 3,
   received day 14, paid day 7-10 -> a 7-10 day gap)

YOUR CASH CEILING
  Usable cash (bank, minus a month of fixed costs)       $__________
  Cash gap in days                                        __________
  ----------------------------------------------------------------
  Usable cash / gap in days = max daily OUTLAY           $__________
  Last month's supplier payments / 30 = per day          $__________
  ----------------------------------------------------------------
  Max daily AD SPEND = outlay minus supplier per day     $__________

  Cash ceiling vs the constraint ceiling from chapter 1: $______ / $______
  If cash is the lower number, it is your binding constraint today -
  and supplier payment timing is your next conversation.

THE DOUBLING TEST (book: $400/day -> $800/day, 9-day gap, $6,000 bank
  -> headroom $2,400 becomes -$1,200)
                          Now           Doubled
  Daily outlay            $________     $________
  Cash gap (days)         ________      ________
  Cash tied up            $________     $________
  Bank balance            $________     $________
  Headroom                $________     $________

THE DEFENSIVE QUESTION
  If my processor extends payouts by a week in my best month, can I
  still pay for advertising?  Y / N
  If no: reduce the planned growth rate NOW, while it is a choice.

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From Dropshipping - Advanced. The full method is in the book; every
free worksheet: eports.global/resources/dropshipping
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