Problems we solve
How much can I safely spend?
Owners ask this before every hire, truck, build-out and distribution. Without a cash floor and a forecast, the answer is always a feeling — usually either too cautious or too late.
A safe number is a policy, not a mood.
The problem
Spending and distribution decisions are made against the current bank balance, which reflects yesterday rather than the next thirteen weeks.
Why it matters
Overspending shows up two months later, when the obligation has already been made. Underspending quietly costs growth and capability.
How to know if you have this
- The bank balance is your decision tool
- There is no defined minimum operating cash level
- Distributions vary with mood rather than policy
- Hires are deferred out of uncertainty rather than analysis
How Advisory Motion solves it
- 01Set a minimum operating cash floor appropriate to your model and volatility
- 02Build a rolling 13-week forecast so the near-term picture is always current
- 03Establish a distribution policy tied to operating cash flow
- 04Model each commitment against the floor before it is made
Illustrative example
Two hires, ten weeks apart
Both at once broke the cash floor in month four. Staged, both were affordable and the buffer stayed intact.
Illustrative composite · not a client identification
Where this connects