What happens if we collect a year’s payment in advance? Looking at the whole company picture when hiring 2 salespeople per month Cashflow comparison - Cumulative Cashflow monthly payments vs comparision - monthly year in advance payments vs year in $2,500,000 advance $40,000,000 Eliminates the $2,000,000 $35,000,000 cash flow trough, $30,000,000 and means $35m $1,500,000 $25,000,000 more cash in this $20,000,000 scenario $1,000,000 $15,000,000 $10,000,000 $500,000 $5,000,000 $- 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 $(5,000,000) 1 1 1 1 1 2 2 2 2 2 3 3 3 $- h h h h h t t t t t h h h h h h h h h h h h h 1 4 7 0 3 6 9 2 5 8 1 4 n n n n n t t t t t t t t t t t t t 1 1 1 1 2 2 2 3 3 n n n n n n n n n n n n n h h h t t t h h h h h h h h h MoMo MoMoMo n n n t t t t t t t t t MoMo MoMoMoMoMo MoMoMoMoMo Mo $(500,000) Mo Mo Mo n n n n n n n n n Mo Mo Mo Mo Mo Mo Mo Mo Mo Cumulative Net Profit Net profit Net Cash Flows Cumulative Net Cash Flows