Simple systems to stay solvent, profitable, and fund growth.
1. Separate Money, Always
Business bank account + expense card. Zero co-mingling.
2. The 4-Bucket System
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COGS: costs to deliver (target margin ≥ 60% for services, ≥ 40% for products).
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OPEX: rent, tools, payroll (keep < 30–40% of revenue).
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Tax: set aside monthly (15–30% depending on jurisdiction).
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Profit/Buffer: 5–10% swept weekly.
3. Numbers to Check Every Friday
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Runway: cash ÷ average monthly burn.
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Receivables aging: follow up at 15/30/45 days.
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Unit economics: LTV/CAC > 3; payback < 12 months (SaaS) or < 3 orders (e-com).
4. Pricing and Discounts
Price for value. Use conditional discounts (pre-pay, volume, referral) rather than ad-hoc cuts.
5. Funding Options
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Bootstrap with customer pre-payments.
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Revenue-based financing for inventory/ads.
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Equity only when chasing a large, defensible market.
Key takeaway: Profit is a habit, not an event. Protect cash flow and the business survives to improve.
