A position says what would prove it wrong. Test each on your own books.

1. A growing brand with a long cash cycle will run short of cash even when it’s profitable.Wrong if your bank balance rose in the quarters when revenue grew fastest, without new debt or equity.
   Profit Is an Estimate
2. The cash cycle starts when you pay the supplier’s deposit, not when the goods arrive.Wrong if your cycle measured from the deposit is within a week of your software’s figure.
   The Cash Conversion Cycle
3. Days matter more than rates: a shorter cycle usually frees more cash than a cheaper loan saves.Wrong if 20 days off your cycle is worth less than two points off your borrowing rate.
   The Cash Conversion Cycle
4. Firms with shorter cycles tend to be more profitable, but stretching suppliers isn’t how they got there.Wrong if the brands in your category that pay suppliers slowest are also the most profitable.
   Profit Is an Estimate
5. A preorder is a loan from your customers, and it’s repaid in product, on the date you promised.Wrong if your preorder buyers don’t cancel or complain more when a ship date slips.
   Preorders and Waitlists
6. Existing customers should get first access, and the best early price, on anything you sell in advance.Wrong if a preorder offered first to your list fills slower, or cancels more, than one opened to all.
   Preorders and Waitlists
7. Gift cards, store credit and prepaid plans are float: cheap money only while you count it as owed.Wrong if spending float as your own cash has never left you short in the month it was redeemed.
   Float
8. A repeat customer’s order is the cheapest cash a brand can raise.Wrong if repeat orders leave less cash, after the cost of winning them, than new customers’ orders.
   Retention Pays in Cash
9. A minimum order quantity is a price. Pay it only when the discount beats what the cash and the risk of unsold stock cost you.Wrong if your last three big “save on the unit cost” orders all sold through at full price within the time you planned.
   Smaller Orders, More Often
10. Cash is managed weekly or it isn’t managed.Wrong if your monthly close has caught every cash squeeze in time to act on it.
    The Weekly Cash Meeting