Oleksandr Solovei

You work hard. The team is doing its best, sales are moving, customers are paying. But every month the situation is the same: the report shows a profit, but there is little money in the account. Everything seems to be fine, but there is no peace of mind.

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This is not about failure. It's about managing at random. About a business that is growing but not under control. About numbers that seem to be "there" but don't speak to you.

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Alyona Shpachenko, a business scaling consultant, founder of GxBar Madrid, an entrepreneur with 20 years of experience, and a guest on the podcast "If Only I Had Known Earlier," knows this story from the inside.

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She has seen dozens of entrepreneurs who built strong companies — and still fell into the trap: there is profit, but no money. In this article, she will share her knowledge about where cash disappears, how to think in numbers rather than emotions, and what it means to be a financially sober owner.

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This article is for you if you want to understand how money really works in your business. Not formally, not "on paper," but in essence. You will see why P&L figures differ from account balances, how to distinguish profit from the illusion of profit, and what it means to withdraw money without harming the company.

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Read on and learn to see what most owners only notice when it's too late.

Insight 1. Habit №1 — Know Your Numbers by Heart

You may intuitively understand your business and know every customer and team member by heart, but if you don't know your numbers, you're playing in the dark. When an owner doesn't see the real numbers, they make decisions based on emotions rather than facts. And emotions are the worst analyst.

Business speaks only through numbers, through analytics. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Why It Matters

Until you see the numbers, the business seems "alive," but in reality, it is unstructured.

• You don't understand which months are really profitable and which ones are dragging the business down.
• You don't see that revenue growth can go hand in hand with a decrease in margins.
• You can't explain where the cash is going if sales are growing.

Most entrepreneurs rely on intuition: "This month seems good," "Expenses haven't changed." But the numbers often show the opposite. And it is they that give you peace of mind that money can't buy — when you know exactly what is happening in your company.

What You Need to Know by Heart

The minimum you need to keep in mind every week — not for reporting, but for decision-making:

How to Do It Systematically

Take the following steps:

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1. Define a set of key metrics (3–5 maximum). These are your constant benchmarks, not random numbers.
   
   
2. Establish a "number ritual" — a day and time when you review the indicators (for example, every Friday at 10:00 a.m.).
   
   
3. Do not delegate analytics completely. A financier can do the math, but you have to understand the numbers.
   
   
4. Record trends, not random spikes. One month is not an indicator — look at the dynamics over 3–6 months.
   
   
5. Talk to your team using numbers. Don't say, "We need to sell more," but rather, "We need to increase our margin by 3%."
   
   

Result

When you know your numbers:

• you make decisions faster and more calmly;
• you see problems before they become crises;
• you stop confusing profit with money;
• you control rather than guess.

If an entrepreneur makes decisions based on feelings, it's unconscious management. Numbers make it conscious. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Want stability, even when the market is in turmoil? Start with this habit. Not with programs or formulas — with simply "knowing your numbers by heart." This is the best insurance for your business.

Insight 2. P&L ≠ Money in the Bank

Profit in P&L is not equal to money in the account. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

This is probably the most painful discovery for most entrepreneurs. The report shows a profit, everything looks good. But the account is empty. And then a logical question arises: how is this possible?

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The reason is simple: P&L (profit and loss statement) shows accruals, not money. 

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That is, income and expenses are reflected not when you received or paid the money, but when they arose. This is accounting logic — convenient for analysis, but dangerous if you don't understand the difference.

What Is the Difference Between P&L and Cashflow Reports

That is why it happens that you have a profit of +200,000 UAH in P&L, but only 50,000 UAH in your account. 

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The profit is there because the income has already been accrued, but there is no cash because the clients have not paid yet, or you have gotten ahead of yourself by making large expenditures.

Typical Situations When Profit ≠ Money

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1. Large accounts receivable.
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   You sold, but you haven't received the money yet. In P&L — income, in Cashflow — zero.
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   Solution: monitor payments under contracts, introduce credit limits or an advance payment system.
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2. Prepayments to suppliers.
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   You paid in advance, but the goods/services are not yet included in your expenses.
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   Solution: record prepayments separately to see how much cash is "frozen."
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3. Taxes, salaries, bonuses "for later."
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   They have not been paid yet, so they do not reduce your current cash flow, but they will soon hit your account.
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   Solution: plan these payments in your payment calendar — even if it's not time to pay yet.
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4. Investments and large one-time expenses.
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   Buying equipment, renovating the office, upgrading the warehouse — these things don't affect P&L right away, but they eat up money instantly.
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   Solution: Separate investment expenses from operating expenses.

How to Link Profit to Cash

To understand why there is less in the account than in the P&L, you need to bridge the gap between profit and cash.

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Steps:

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1. Take the net profit from the P&L.
   
   
2. Subtract the increase in accounts receivable (what you are owed).
   
   
3. Add the increase in accounts payable (what you owe).
   
   
4. Take into account changes in inventory — if you bought more goods than you sold, the money went to the warehouse.
   
   
5. Subtract taxes, dividends, investments, prepayments — anything that eats into your cash.
   
   

After that, you will see the real cash result for the month. And often it is very different from the profit.

What to Do Regularly

Result

When you see both sides — profit and cash — you stop confusing "earned" with "received."

• You understand where the money is going.
• You start planning payments instead of reacting to crises.
• You see how decisions about sales, payments, or expenses affect the flow of money.

A business can be profitable and bankrupt at the same time. If you don't control cash, the numbers in the report won't save you. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

This is where true financial maturity begins: not rejoicing in profits in Excel, but managing what really moves — the money in your account.

Insight 3. How to Withdraw Money from Your Business Correctly

Your business is not equal to you. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

This is the moment when even strong entrepreneurs "burn out." You create a business, invest your time, nerves, and energy in it — and logically believe that you have the right to take money from it whenever you want. But this is often what destroys the financial stability of a company.

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If you withdraw everything that's left in the account after a month of work, you're not making a profit, you're burning through your working capital. The very money you'll need tomorrow for salaries, purchases, or taxes. And then — cash flow gaps, loans, panic, and the search for "where to find cash quickly."

The Main Rule

You cannot take more from the business than it has actually earned.

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And even what you have earned cannot be taken immediately. First, you need to check whether you have enough money for operating expenses and a safety cushion.

Algorithm for Safe Withdrawal of Funds

After working for a month, we don't pocket everything that's left in the account. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

How It Works in Practice

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1. Instead of "withdrawing everything," plan for "as much as possible."
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   You know in advance how much of the profit you will be able to withdraw at the end of the month. The rest remains in circulation.
   
   
2. Personal expenses ≠ business.
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   Personal budget — separately. Business — separately. If you need money, plan dividends or owner's salary, not "withdraw because you need to."
   
   
3. Instead of surprises — a financial rhythm.
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   Withdraw once a month after analyzing reports, not randomly. This creates predictability for you and your team.

Practical Example

• Monthly revenue: UAH 1,000,000
  
  
• Net profit according to P&L: UAH 150,000 (15%)
  
  
• Planned working capital (50% of monthly turnover): UAH 500,000
  
  
• Current account balance: $620,000

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Safe amount for withdrawal = 620,000 – 500,000 = 120,000 UAH

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But no more than net profit (150,000 UAH).

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So, you can safely withdraw 120,000 UAH and still have a "cushion" for stability.

Result

When you start working according to this rule:

• your business stops "sinking" after each month;
• cash gaps disappear;
• you are not afraid of expenses or taxes because you know they are covered;
• money ceases to be a source of stress — it becomes a management tool.

Business should live its own life. If you constantly drain it, it simply won't be able to grow. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

This is what financial maturity means for an owner: taking money from the business consciously, not emotionally. Because profit is not a signal to "cash out," it is a signal to "manage."

Insight 4. Excel vs. Software: Where to Calculate and Where to Manage

I loved Excel until I started working at Finmap. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Most entrepreneurs start their financial accounting with Excel. And that's normal: it's simple, familiar, and doesn't require additional expenses. But sooner or later, the spreadsheet turns into chaos — hundreds of rows, broken formulas, dozens of file versions, and the question: "Where is the current data?"

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This moment is inevitable. And that's when you need to understand: Excel is a great tool for analysis, but not for systematic money management.

What Is the Difference Between Excel and Financial Software

The program automatically calculated P&L and cash flow — and it's immediately clear that it doesn't add up. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

When to Leave Excel

Excel is not the enemy. It is necessary when you need to:

• create a financial model or calculate business development options;
• model "what if" scenarios: raise prices, cut costs, launch a new line of business;
• analyze project details in depth when flexibility and manual configuration are required.

In other words, Excel is a laboratory. Here you play with numbers to understand how they behave. But a laboratory is no substitute for reality.

When to Switch to a Program

A financial program becomes a necessity when:

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1. You already have a volume of transactions that you cannot keep up with manually.
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   Errors in Excel are costly — especially when they are not immediately visible.
   
   
2. Your team is involved in finances.
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   Someone pays the bills, someone sends checks, someone generates reports — everyone needs one system.
   
   
3. Daily analytics are needed.
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   The program shows what is happening now, not after the file is updated at the end of the month.
   
   
4. You want to see the financial picture instantly.
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   P&L, cash flow, account balances, debts — all in one place, without formulas.

The Ideal Formula Is "Excel + Program"

I realized that Excel is good when you're planning. And the program is good when you're managing. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Result

When you separate these two roles:

• financial chaos disappears — the data is always up to date;
• you see the whole picture: not just the plan, but also the facts;
• the team works transparently, without "I didn't see that version of the file";
• you reduce the number of mistakes that cost money.

Your goal is not to count manually, but to understand what is happening with the money. Excel is a thinking tool. The program is a control tool. Together, they provide the best combination: strategic vision + operational accuracy.

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Read more about how to choose a program for financial accounting.

Insight 5. Accountant ≠ Financier: Different Roles, Different Goals

Don't expect an accountant to be a financier. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

One of the most common mistakes owners make is to delegate financial management to an accountant. It seems logical: "he works with numbers." But accountants and financiers speak different languages. One talks about reporting and the law, the other about efficiency and development. And if you confuse these roles, your business will be left without strategic money management.

What Is the Difference Between an Accountant and a Financier

An accountant will close the month, but won't tell you why there is no money. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Practical examples

• Accountant: reports that everything is fine — there is profit, taxes are paid.
  
  
• Financier: sees that the profit is "on paper," but cash has been lost due to accounts receivable.
  
  
• Owner: has to decide what to do next — raise prices, cut costs, change payment policies.

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In the first case, you are simply "in good standing with the tax authorities."

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In the second case, you are in order with your business.

Why Is This Important

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1. Accounting is about the past.
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   It shows what has already happened.
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   Reports, acts, accounts, and declarations are "after the event."
   
   
2. Financial accounting is about the present and the future.
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   It shows where the business is going and allows you to manage that movement.
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   It is the financier who analyzes margins, profitability, cash gaps, plan-actual, and the profitability of different areas.
   
   
3. Without the financial function, you cannot see the whole picture.
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   Even the best accountant cannot show what is happening with efficiency.
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   As a result, there is profit, but no money.

How to Distribute Roles Correctly

An accountant keeps records for the state. A financier keeps records for you. And these are completely different tasks. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

What to Do if You Don't Have a Financier Yet

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1. Don't delegate financial management "on intuition."
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   Even without a financier, you need to know the basic reports: P&L, cash flow, accounts receivable.
   
   
2. Keep management accounts in the program.
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   This is your "financial dashboard" where everything is visible in real time.
   
   
3. Consult a financial advisor at least once a quarter.
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   They will help you understand the numbers, find weaknesses, and adjust your plan.
   
   
4. Gradually introduce a financial function into your team.
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   Even part-time employment of a financier often pays off in just a few months.

Result

When the accountant and the financial advisor each do their own thing:

• you have a legitimate and profitable business at the same time;
• you know not only how much to pay, but also why it is worth doing it this way;
• the numbers cease to be chaos — they become your management system.

Accounting keeps you on track. Finance gives you a boost. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

This is what it means to be a mature owner: understanding that proper reporting is not a guarantee of a healthy business.

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The guarantee is when you manage money, not just report on it.

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Read more about the difference between accounting and management accounting.

Insight 6. Common Financial Mistakes — and How to Fix Them

Financial problems rarely appear suddenly. Most often, they are the result of habitual but misguided actions that seem "logical" at the moment.

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Unnecessary expenses, impulsive decisions, mixing personal and business money — all of this gradually undermines stability. Alyona calls this "financial self-deception," which needs to be fixed — that is, changing the owner's very logic of thinking.

The Most Common Financial Traps for Entrepreneurs

I always advocate for analytics because it reveals what intuition conceals. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Why These Mistakes Seem Logical

You act with good intentions: you want to keep your business afloat, save money, invest for growth. But the problem is not in your desires, but in your blind spots. Without numbers, you cannot see what actually works and what only seems right.

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For example:

• You cut costs, and with them, your income falls.
• You increase sales, but the margin is eaten up by promotions.
• You think you're making a profit, but the money is stuck in accounts receivable.

Without analytics, these connections are invisible. That's why Alyona insists: financial sobriety is not just about counting money, but about being able to see cause-and-effect relationships.

How to Reprogram an Owner's Thinking

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1. Introduce the rule "numbers first, decisions later."
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   No "I think." Even small decisions should be based on data.
   
   
2. Separate personal and business finances.
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   This is not a formality, but a way to protect your business from emotional decisions.
   
   
3. Keep management reports on an ongoing basis.
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   Not when there's a fire, but every month. P&L and Cashflow are your foundation.
   
   
4. Conduct a "debriefing" after each month.
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   Compare the plan with the actual results, find the reasons for the deviations, and note what needs to be changed.
   
   
5. Celebrate successes.
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   Each month with positive dynamics is proof that control is working. This is important for motivation.

Result

When you reprogram your financial thinking:

• decisions become calm, without panic;
• cash flow swings disappear — you consistently have enough money;
• you understand where your profits are "flowing" and how to stop it;
• analytics becomes not a "scary table" but your management language.

As soon as you start talking to your business in the language of numbers, it starts responding to you. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Financial sobriety is not about rigidity, but about clarity. Because only when you see reality without illusions can you build a business that really makes money — and brings peace of mind.

Insight 7. Profitability and Marginality — in Simple Terms

Profitability is the percentage you earn from revenue. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

Most entrepreneurs say, "We earn well." But if you ask, "What is your profitability?" the answer often sounds like a guess. And this is where financial illusions begin: income is growing, but there is no more money. The problem is not that the business is "bad," but that you are not measuring efficiency in percentages.

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Profitability and marginality are your main financial compasses. Without them, you cannot see where your business is really making money and where it is simply turning money over.

What's the Difference

When you see profitability in percentages, you begin to really understand how the business works. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

How It Works in Practice

Example:

• Revenue — UAH 1,000,000
  
  
• Cost — 600,000 UAH
  
  
• Fixed costs — UAH 300,000
  
  
• Net profit — 100,000 UAH
  
  

• Marginality: (1,000,000 – 600,000) / 1,000,000 = 40%
  
  
• Profitability: 100,000 / 1,000,000 = 10%
  
  
• Break-even point: 300,000 ÷ (1 – 0.6) = 750,000 UAH
  
  

This means:

• The business only starts to make a profit after 750,000 UAH in revenue.
  
  
• Each hryvnia above this level brings 40 kopecks of margin, but after all expenses, 10 kopecks of net profit remain.

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How to use these indicators in management:

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1. Determine the margin of each product or direction.
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   Not all sales are equally useful. There are those that "generate turnover" but not profit.
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   Focus on high-margin products and optimize the rest.
   
   
2. Calculate profitability regularly.
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   Once a month, analyze what percentage of net profit the business brings in.
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   If it falls, it is not always necessary to "sell more" — often you need to reduce costs or fixed expenses.
   
   
3. Work with a break-even point.
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   Knowing it, you understand how much you need to earn to survive — and everything above that is growth.
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   This relieves panic: you see the real limits of security.
   
   
4. Calculate the profitability of projects.
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   One client may seem large, but in reality, they take more resources than they bring in.
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   Financial analytics will show you who to scale up and who to let go.

Common Misconceptions

Result

When you start thinking in percentages rather than just dollars:

• you see which sales are truly profitable and which are just an illusion of growth;
• you understand where to optimize in order to increase profits without increasing turnover;
• you make decisions based on facts, not intuition;
• you can clearly explain to your team: "We don't just work to sell, we work to earn."

Profitability is like the body temperature of a business. If you don't measure it, you don't know if it's healthy or not. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

A Simple Rule from Alyona

You need to grow not in terms of revenue, but in terms of profitability. Because growth without profit is just approaching the limit.

If you control your margin and profitability, you see not only the volume of your business, but also its quality.

And it is quality that determines whether you can safely withdraw money from your account without risking the stability of the company.

Financial Sobriety: When Your Business Finally Starts Talking to You

The money is there. You just need to know how to find it. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

These seven insights are not about formulas. They are about the mindset that distinguishes a stressed-out owner from a confident leader. Everything Alyona Shpachenko talks about boils down to one thing: business does not hide money from you — it just wants you to learn to see it.

What Unites All Insights

• Know your numbers by heart — so you don't confuse intuition with reality.
  
  
• Distinguish between profit and cash — so you don't wonder why there is no money.
  
  
• Withdraw money wisely — so you don't kill your business in a moment of emotion.
  
  
• Use software, not just Excel — so that data works for you, rather than sitting in files.
  
  
• Separate roles — so that the accountant reports to the state and the financier helps you earn money.
  
  
• Notice financial self-deception — so you don't have to put out fires that you start yourself.
  
  
• Think in percentages, not feelings — so you can see where the real profit is and where it's just turnover.

What Will Change When You Start Taking Action

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1. Money will stop disappearing "between the lines."
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   You will understand every hryvnia, where it goes and where it comes from.
   
   
2. Your decisions will become calm.
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   There will be no panic about "where to get money tomorrow" — there will be a plan for "how to work steadily."
   
   
3. Business will start to feel like control, not a struggle.
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   You will see that profitability is not a coincidence, but the result of a system.

This Week, Take a Step Toward Controlling Your Finances

Financial sobriety is not austerity, but freedom. It's when you're not chasing money, but money is working under your control. When every number makes sense, and every decision is based on facts, not "seems like."

I want people to be interested in numbers. And then the numbers will start talking to them. — Alyona Shpachenko, founder of GxBar Madrid, entrepreneur with 20 years of experience

If business is a conversation between you and money, then financial sobriety is the moment when you finally begin to understand each other.

Frequently Asked Questions

1. If the business is profitable, why is there no money in the account?

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Because profit ≠ money. In the P&L report, you see income even if the customer has not yet paid. And money only appears when the payment has actually been credited to the account.

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Between these two moments, there are accounts receivable, prepayments to suppliers, taxes, salaries, and investments.

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Therefore, always look not only at profit, but also at cash flow — a report on the movement of money.

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Tip: check your profit against your actual cash every month. If there is a difference between them, look for where the money is "stuck."

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2. How can you figure out how much money you can safely withdraw from your business?

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The formula is simple:
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1. See how much you actually have in your accounts.
   
   
2. Subtract mandatory future expenses (salaries, taxes, rent).
   
   
3. Leave a safety cushion — at least 50% of monthly turnover.
   
   
4. Only the remainder can be taken as dividends.

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Alyona Shpachenko's rule: "The business must still have money even after you have withdrawn it."

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3. Why can't an accountant be a financier?

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Because they solve different problems:

• An accountant ensures that the state has no questions for you.
  
  
• A financier — to ensure that the business has profits and cash.

An accountant sees the past, a financier sees the future.

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The former says "how it is," the latter says "how to do it better."

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If you mix these roles, you will end up with accounting without management.

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Tip: even if you don't have a financial specialist yet, you can think like one — through numbers, dynamics, and analytics.

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4. When should you switch from Excel to a program?

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If:

• there are more transactions than you can update manually;
• a team is involved in finance (payments, invoices, reports);
• you want to see P&L and cash flow daily, not just once a month.

Excel is great for modeling and forecasting, but not for day-to-day management.

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The program is your financial coordinate system, where you can see everything in real time.

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The optimal solution is to use Excel for analytics and Finmap or a similar platform for daily accounting.

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5. How to increase business profitability without increasing sales?

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Profitability is not about "selling more," but about earning more efficiently.

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Check:

• whether the cost price is eating into your margin;
• which products or customers bring the highest profitability;
• whether fixed costs are too high;
• whether net profit is growing in percentage terms, not just in dollars.

Tip: set a goal of "+5% profitability" rather than "+20% revenue." This has a greater effect and leads to more stable growth.

You can run launches for $10,000, $50,000, even $100,000 — and still end up with no money.

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On paper — success; in real life — a negative balance and constant stress. If sales stopped tomorrow, how many days could you last without panic?

When the war started, I realized that we were bankrupt. We had turnover, but no money for financial management. — Oleksandr Horevych, producer of educational products and online schools, guest of the podcast “I Wish I Knew This Earlier.”

This is not an isolated screw-up — it’s the typical scenario for most info-businesses that don’t manage their finances because “there’s no time for managerial accounting.”

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The problem isn’t that you earn too little. The problem is that you don’t manage the money you’ve already earned.

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This isn’t about a crisis. It’s about self-deception. About how founders build businesses based on emotions, not numbers. And how a “successful launch” can hide a hole worth hundreds of thousands of hryvnias.

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This article is a cold shower for those who still believe that finances can be “outsourced” and that all you need to do is “sell more.”

After reading, you will learn:

• Why “earned” does not equal “having money” — and how to avoid the cash flow trap.
• How to see your money in advance: accounts receivable, payment schedules, real balance, and obligations.
• How to create a financial system where every hryvnia has a date, a purpose, and a responsible person.
• 5 KPIs for the financial viability of a business.
• How to stop “living by feelings” and start managing finances like a founder.

There won’t be any sweet stories about “easy money” here. There will be the truth, which will make many feel uncomfortable. After reading this, you will never be able to look at your finances the same way again.

Insight 1. Finances — the direct responsibility of the founder

You can delegate advertising, content, and even sales. But when you hand over financial decisions to informal executors and remove yourself from the financial loop, you create operational blindness and lose control over liquidity in real time. Turnover may grow, but there’s no money — and you only find out after the fact.

This was the biggest mistake of my life — not getting involved in finances. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What exactly should a founder do

Red flags indicating: “you are not managing your money”

How to Take Control of Finances Today

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1. Summarize the day. Open your account summary: how much money is available right now and on which accounts.
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2. Record all accounts receivable. For each client: amount → date → payment channel. This is your cash-in forecast.
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3. Mark obligations. Taxes, acquiring fees, salaries, platforms, rents/contractors, possible refunds — each as separate lines in your payment calendar.
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4. Check the balance afterward. On key dates of the week, verify you’re not going negative after planned movements.
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5. Enable a weekly ritual. Once a week — a short review: balance → accounts receivable → calendar → P&L. Any significant decision — only after this.
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At the small business stage, you are the chief financial officer. Until balances, accounts receivable, payment calendar, and P&L pass through your hands, any “successful launch” can end with an empty account — and you’ll find out too late.

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Do you want it to work not on you, but for you?

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Start with a free diagnosis with a Finmap expert and get an implementation plan: what to connect, what to automate, and which money rules to set so that every launch converts not into stress, but into transparent profit.

Insight 2. Revenue ≠ Profit: Why $10,000 in the account is not yet free capital

You count the money that came into the account — and feel in the black. But these funds are already allocated for: taxes, fees, team, platforms, advertising, and possible refunds. The mistake is treating turnover as profit and spending advances as if they were free cash.

I made $10,000 in sales. That doesn’t mean I have $10,000 in my pocket. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What this means in practice

Red Flags and Effective Solutions

How to Separate Turnover and Profit Today

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1. Trace the money backwards. For each payment, record which expenses and obligations are tied to it.
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2. Divide revenue into three buckets: “Taxes/Fees,” “Obligations,” and “Profit.” The “Profit” bucket is filled last.
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3. Set up a payment calendar. For each date: what comes in/goes out and what the balance will be afterward.
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4. Weekly P&L ritual. In the report, separate: turnover → expenses → net profit; track trends, not just one-off numbers.
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5. Don’t spend advances. Until obligations are fulfilled and the risk of refunds has passed, this is not money “in hand.”

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Your business doesn’t go bankrupt because of “low turnover” — it sinks when advances are spent as profit. Separate the concepts of revenue and profit, reserve obligations in advance, and make decisions only after reviewing the P&L and payment calendar.

Insight 3. Accounts Receivable as a Driver of Predictable Business Liquidity

You can have a full cash balance today and go negative on Friday — simply because you don’t know exactly when and from whom the money will arrive. Without a calendar of upcoming inflows, you rely on assumptions rather than data.

If we simplify it a lot, it’s the money your clients, students, or pupils still owe you. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What this means in practice

Red Flags and Effective Solutions

How to take accounts receivable under control today

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1. Get the full picture. Verify all installment agreements: amount → date → payment method for each client.
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2. Enter into the payment calendar. Each upcoming payment is a separate entry with the expected date.
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3. Mark money as “reserved.” Advances backed by obligations are untouchable until fulfilled.
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4. Enable reminders. 48/24 hours before the deadline — automatic notification to the client + responsible team member.
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5. Weekly check. Review statuses: “planned / paid / overdue” + adjust expenses according to actual inflows.
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6. Plan B for overdue payments. If money hasn’t arrived: freeze non-essential expenses, focus on quick collections (additional payments/upsells), update the calendar date.

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Accounts receivable is not “somewhere later.” It’s your radar for future cash. When you see who / how much / when, you can plan expenses without cash gaps and stop living from launch to launch.

Insight 4. Cash gaps and refunds: how “successful sales” eat up your business

You can run loud launches and grow your revenue, but without reserves, a payment calendar, and clear refund rules, it’s easy to face a cash gap on refund days or mandatory payments. The main reason for failures in info-business is spending advance payments as “free” money and lacking control over financial obligations.

The biggest problem you can get into is, of course, a cash gap. Spending the money as soon as it comes in. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What this means in practice

Red flags and effective solutions

How to prevent cash gaps today‍

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1. Divide money into three buckets: "obligations", "taxes/fees/salaries", "profit". Only what remains after fulfilling obligations goes into the profit bucket.
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2. Set up a payment calendar. For each date: expected inflows, mandatory payments, projected balance afterwards.
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3. Create a refund reserve. A fixed % of revenue from each launch — separate from operational cash.
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4. Weekly P&L ritual. Check that you’re not funding today’s expenses with tomorrow’s inflows.
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5. Freeze “wants”. Any upgrade/experiment — only after obligations and reserves are covered.
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6. Refund scenario. If refunds increase: stop non-essential expenses → focus on quick top-ups/upsells → review refund policies in future offers.

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A cash gap appears not because you sell too little, but because you spend advances as profit and don’t plan money by dates. Reserve obligations, maintain a calendar and P&L — and “successful sales” will stop destroying your cash flow.

Insight 5. Founder’s financial literacy — transparent data instead of intuition

You can be a launch genius, but without a clear picture of your money, every decision is a gamble: invest $500 or $5,000 in advertising, sign a contractor or wait? When you don’t see balances, accounts receivable, and the payment calendar, you operate on emotions, not business.

I don’t know how much money I will have, if I’ll have it at all. I feel very unsafe. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What this means in practice

Red flags and effective solutions

How to enable financial predictability today

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1. Take inventory of your money. Consolidate all accounts in one view: how much and where the money is “sitting” right now.
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2. Digitize your accounts receivable. For each client: amount → date → status (“planned / paid / overdue”).
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3. Set up a payment calendar. For each day of the week — inflows/outflows and projected balance after.
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4. Start a weekly P&L ritual. Check: revenue → expenses → net profit; note the reasons for deviations.
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5. Measure efficiency, not just activity. For each initiative, calculate ROI for every dollar and overall profitability for the period.
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6. Reserve obligations. Advances tied to work/event are untouchable until fulfilled and “past the refund window.”
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7. Big-spending rule. Any “development” expense happens only after reviewing balances, accounts receivable, and P&L.

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Financial literacy is not bookkeeping; it’s your ability to see money ahead and make decisions based on numbers. When you have balances, accounts receivable, a payment calendar, P&L, ROI, and profitability at your fingertips, you are truly managing your business.

Insight 6. Pre-launch financial model: expenses, break-even, and scenario planning

You can start a product flow “by intuition” and hope that sales will cover everything. But without a calculated model, you either spend advances or go negative on the day of mandatory payments. A business plan isn’t a presentation for investors—it’s your shield against cash gaps.

So, when I launch a product flow, I already understand the business model in advance, even before the launch. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What this means in practice

Red flags and effective solutions

How to build a working model today

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1. Set your sales goal: price × target number of participants.
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2. Break down costs: separately fixed (rent, fixed contractors) and variable (increase with group size).
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3. Calculate break-even: how many sales are needed to cover fixed costs.
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4. Enter obligation dates into the payment calendar and reserve funds for each date.
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5. Create three scenarios: optimistic / base / stress + predefined steps (cut costs, upsells, defer expenses).
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6. Before major expenses, check: are obligations covered and will this payment affect the “balance after” on key dates?

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The model and break-even are calculated before the launch. Separate costs, maintain the obligations calendar, and keep scenarios — this is how you start controlling your cash.

Insight 7. Make your business run without you

You can carry everything yourself, but until the system holds the business, you have no peace: a hospital visit, vacation, or a week offline — and everything falls apart.

When the business is systemic, you can at least be sure that if you drop out, get sick, are gone for a week, or go on vacation, nothing will break. The company won’t close or go bankrupt. When it’s non-systemic, everything usually rests on the founder. — Oleksandr Horevych, entrepreneur, strategist, and online product producer

What this means in practice

Red flags and effective solutions

How to turn on systematization today

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1. Identify your profile. Are you more creative or systematic? If creative — hire an operations/project manager; if systematic — add a creative partner/role for growth.
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2. Create a unified financial dashboard. Balances, receivables by dates/clients, payment calendar with “remaining after”, P&L — accessible to key people.
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3. Define roles and limits. Who approves expenses up to $200/500/1000+; who initiates payments; who controls receivables and reminders.
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4. Launch a weekly “radar route”. 30–45 min: balances → receivables/overdue → payment calendar → P&L → weekly decisions.
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5. Create 3 short SOPs. (a) refunds, (b) purchases/contracts, (c) reserve for obligations — with clear steps and deadlines.
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6. 7-day absence test. Simulate absence: do payments go through? Are receivable reminders sent? Are scheduled payments made? Record what fails — and fix gaps.
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7. Number culture. Before any major decision, the team opens the dashboard and answers: how will this affect balances, receivables, calendar, P&L?

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A systematic business is not about complexity, but predictability. When there are defined roles, limits, rituals, and a shared dashboard with balances, receivables, a payment calendar, and P&L, the company won’t break if you disappear for a week — and this is the best insurance against bankruptcy.

Overall conclusion

This story is not about “bad luck.” It’s about the founder’s choice: either you manage the money, or the money manages you. This is how “successful launches” lead to empty accounts, cash gaps, and a sense of danger when you don’t know if money will come tomorrow.

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The key mistake, honestly admitted by the hero, is “not getting involved in finances.” The conclusion is simple and harsh: as long as the business is small, you are the main financial director.

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To break free from the illusion that “revenue = profit,” return to the basics:

• Separate the concepts: revenue — expenses — obligations — net profit. Advances are not “free money” until obligations are fulfilled and the refund window has passed.
• See future money in advance: receivables for each client with dates are your cash-in forecast, which guides expense planning.
• Live by the payment calendar: for each date, track what comes in/what goes out and what the remaining balance will be. This is how “random” cash gaps are prevented.
• Maintain a weekly P&L ritual: revenue → expenses → net profit. Not numbers for the sake of numbers, but decisions based on efficiency trends.
• Have a pre-launch model: fixed/variable costs, break-even, obligations calendar, and refund reserve — all before the first payment arrives.
• Foster a numbers-driven culture in the team: roles, limits, simple SOPs for advances, refunds, and purchases. Decisions “based on intuition” are replaced by data-driven decisions.

Five metrics that should always be in view: revenue, expenses, net profit, ROI per dollar, and profitability. They show whether the business is truly alive or just “making noise” with sales.

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The final message is pragmatic: a founder’s peace of mind is bought with transparency. When you have balances, receivables, a payment calendar, and P&L all in one field of view, you stop chasing “hopes for the next launch” and start managing money as a system.

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Then any pause — sickness, vacation, force majeure — won’t break the company. Success stops being a one-time spike and becomes predictable profitability.

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Here’s a simple action for today: consolidate all accounts, digitize receivables, set up a payment calendar, and start a weekly P&L review. Everything else follows. When you look ahead at money and make decisions based on numbers, your infobusiness stops being a roulette and turns into a controlled mechanism that generates not just revenue, but profit.

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Frequently Asked Questions

1. I have good revenue. Why is there still not enough money?
You are confusing revenue with profit. What has “come in” is already allocated for taxes, commissions, salaries, platforms, advertising costs, and possible refunds. Until these obligations are fulfilled, it is not free money. Solution: check the P&L, not just incoming cash; reserve funds for obligations until they are completed.
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2. How do I practically manage receivables to see money ahead?
Record for each client: amount → date → payment method. In the payment calendar, create “future incoming payments” and set reminders 48/24 hours before the deadline. Statuses: “planned / paid / overdue.” Any expenses should be approved only after verifying that the required amount will arrive on the required date.
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3. What to do so that refunds or taxes do not create cash gaps ?

• Divide money into three categories: obligations, taxes/commissions/salaries, profit (last).
• Keep a refund reserve (a fixed portion from each launch).
• Maintain a payment calendar with a “remaining balance after” for key dates.
• Any “wants” should be funded only after obligations and the reserve are covered.
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4. Which 5 metrics should be monitored weekly and what do they mean?

5. Who should manage finances at the start, and how to bring order?
At the early stage of your business — you should.It means direct control over balances, receivables, the payment calendar, and P&L.You can delegate routine tasks, but all money-related decisions and approvals for major payments must go through you.Hold a weekly ritual: balance → receivables/overdues → payment calendar (“balance after”) → P&L → only then major expenses/investments.

How many times have you thought: “A month of crazy sales means everything is great”? And then — a zero in the final line. Sofia Rozhko, founder of The Body School and a Ukrainian beauty coworking space in Valencia, went through the same thing: painful investment decisions, expensive “gurus,” double renovation, and regulatory surprises.

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Each financial blow led her back to one thing — systematic and daily accounting. That’s what turned “the feeling of success” into controlled product economics, helped her avoid diluting her niche with complementary ideas, and taught her to invest only after closing the month, not “on emotions”.

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This case is about how to count to earn — and how to make decisions when your cash flow is at stake.

I truly became an entrepreneur when I started to systematically manage my money and accurately calculate my profit.
— Sofia Rozhko, serial entrepreneur, guest of the podcast “Wish I’d Known This Earlier”

What You’ll Learn from This Case

• Where the entrepreneur’s maturity point begins.
• How not to blur your niche by adding complementary products.
• Why “an expensive specialist” ≠ a strategy, and what remains your responsibility as a founder.
• How to avoid double website costs: technical specs, sales logic, roles.
• How to act when local regulations “break” your offline business.
• Why marketing is measured quarterly–yearly, not monthly.
• Why cash flow ≠ profit and how quarterly thinking brings peace of mind.

Lesson 1. Count and Control: Daily Accounting Ensures Profit

Entrepreneurship doesn’t start with a “spark” or turnover — it starts when you see real numbers every day: how much came in, how much went out, what’s left as profit, and where your limits are. After that, decisions become sober, and risks — manageable.

I truly switched on as an entrepreneur when I moved from intuition to systematic accounting and precise profit calculation. — Sofia Rozhko, serial entrepreneur

How You Reach “Maturity” with Money

1. Reality hits: expectations don’t match numbers — frustration appears
   
2. Decision time: you start tracking income/expenses clearly to see real profit, avoid cash gaps, and build a reserve.
   
3. Control achieved: you plan investments only after closing the month, understanding payback and your “risk ceiling.”

When you understand turnover and your own financial limits, decisions become much easier. — Sofia Rozhko, serial entrepreneur

What Accounting Changes

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Daily 10-Minute Ritual

Ten minutes a day is enough for the system to work.  — Sofia Rozhko, serial entrepreneur

• Daily: record all transactions by category (even “small things” — that’s where gaps appear most often).
  
• Weekly: review expense categories — ads, consumables, small recurring costs.
  
• Monthly: close the month, calculate profit, set investment limits for the next period.

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Minimum Set of Metrics

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Common Mistakes — and How to Avoid Them

• Mixing personal and business funds → separate accounts and access.
• Evaluating turnover instead of profit → focus on margin and net result.
• Spending/investing before month closing → close first, then invest
  

Accounting and saving are a way to live calmly: you see the picture and control your steps. — Sofia Rozhko, serial entrepreneur

Once you move from “feelings” to daily calculations and start making decisions based on data, you stop playing business — you start managing it.

Lesson 2. Don’t Dilute the Niche: Add a Complementary Product Only When It Solves a Specific Problem

Adding a “complementary” product doesn’t always mean strengthening the business. If the new addition dilutes your niche, makes clients take extra steps (logistics/time), and drags you into a broad funnel of competitors, you risk ending up with lots of operational hassle and zero in the final line.

When I added a physical gym to my niche product, I basically started competing with any gym near the client’s home. The focus blurred — and profit didn’t increase. — Sofia Rozhko, serial entrepreneur

Why This Happens

1. Market expansion → diluted positioning. The niche product becomes “just another” among giants.
   
2. Lower convenience → lower conversion. If clients must travel far, visit rates drop.
   
3. CapEx and OpEx eat up margins: rent, equipment, team — and a “great” month turns into zero.
   

The training spot must be close to home; one extra step often ‘kills’ attendance. —Sofia Rozhko, serial entrepreneur

How to Decide on a Complementary Product

1. Start with the problem, not the form.‍

First, define the problem you want to solve. For our community, occasional large training events at interesting locations were more effective than a permanent gym. — Sofia Rozhko, serial entrepreneur

Read more about financial accounting for sports clubs.

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2. Check the 4T of the new idea.

3. Assess the competitive funnel.
As soon as your product requires a fixed location, you enter the “near home” market. If you can’t win on convenience — don’t enter that format.

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4. Choose the easiest format for the goal.
Focus on the “community” goal → monthly events: strong emotional impact, low CapEx, lots of content and upsells.

Simpler Alternative

I always aimed for a narrow niche: the sharper the focus, the easier it is to promote the product. — Sofia Rozhko, serial entrepreneur

Mini-Playbook: How to Test a Complementary Product Painlessly

1. Formulate one task — e.g., “Increase engagement and upsells through an offline event once per month.”
   
2. Make a one-time event, not permanent infrastructure.
   
3. Set KPI for one iteration: registrations, show rate, upsell/repeat purchases after the event, NPS.
   
4. Define kill criteria: if 2 cycles in a row < X% show rate or upsell below threshold → shut it down.
   
5. Package the content: video/UGC to boost your digital funnel without extra budget.
   
6. Don’t touch the core: name, positioning, and message stay unchanged — the new format highlights, not replaces.

“Red Flags”: When Not to Launch an Add-On

• You can’t clearly state what single problem it solves.
  
• The format requires travel/planning/waiting — and the value doesn’t compensate.
  
• You’re entering a field where convenience and price dominate — and you lack an advantage.
• It requires CapEx that eats margin even in a “good” month.

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Decision Table: What to Do Instead of the “Expensive” Idea

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Lesson Conclusion

Before adding anything — name the problem. If the form blurs your niche or makes the client take extra steps, it will almost certainly eat your margin. — Sofia Rozhko, serial entrepreneur

In short: first — the task and the focus, then the easiest form, and only after small tests with clear KPIs — scale. If a decision does not strengthen your niche and the client’s convenience, you do not need it.

Lesson 3. You Can Delegate Routine, But Not Vision: You Are the Chief Marketer of Your Business

An expensive specialist or agency will never replace you in the main thing — the vision of the product, the niche, and the growth strategy. Delegate execution, but the “what, for whom, and why” will always remain your area of responsibility. Otherwise, you pay for the illusion of control, not for the result.

I started investing in a systematic approach only after admitting that the best marketer for my business is me. Strategy is my responsibility, not someone else’s. — Sofia Rozhko, serial entrepreneur

Why an “Expensive Specialist” Won’t Save You Without Your Vision (The Failure Mechanism)

1. Responsibility vacuum: you expect them to “show the way,” while the contractor expects direction from you — no one takes responsibility for the meaning.
   
2. Substitution of strategy with tactics: they launch “hands-on” work (creatives, ads), but without clear positioning, it’s just moving air.
   
3. Default disappointment: you expect a “breakthrough” without your involvement → expenses grow, but results don’t.

I invested, hoping someone would tell me how to run my business. But it turned out to be my responsibility — the vision and the decisions. — Sofia Rozhko, serial entrepreneur

What Always Remains Yours (Non-Delegable)

 A team works best when everyone knows their area, and the founder sets the direction and holds the frame. — Sofia Rozhko, serial entrepreneur

What to Delegate (and How to Do It Safely)

Founder’s Mini-Playbook: How to Work with Contractors / Team

1. Before anything: write on one page your ICP, problem, offer, promise of results, and USP.
   
2. One-page brief: campaign goal, segment, channels, budget/limitations, KPIs, kill-criteria, deadlines, and responsible people.
   
3. Sprint 2–4 weeks: don’t stretch it. A clear list of hypotheses → launch → record metrics.
   
4. Weekly review (30 min): 1) What did we launch? 2) What did we learn? 3) What do we cut? 4) What do we scale?
   
5. After the sprint: make the decision to “double down / rework / turn off” based on data, not mood.
   
6. Decision log: record why you made a decision — it disciplines you and saves money in future cycles.
   

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Roles Without Confusion (Who Is Responsible for What)

“Red Flags” Showing You Delegated Authority Where You Shouldn’t

• “We’ll do everything without your participation” — means there’s no vision or brief.
  
• No agreed-upon KPIs or kill-criteria — means no one will turn off the unprofitable.
  
• The contractor suggests rewriting the product/positioning instead of “how to sell what exists”
• You don’t see raw data or access — which means you make decisions “by feeling”.
• Promises of “guaranteed sales” — dishonest rhetoric in a risk-based market.
  

Founder Maturity Test (5-Minute Check)

• Can I explain in 60 seconds who we sell to and what value we deliver?
  
• Do I have a short tech brief for any contractor?
  
• Do I know the KPIs and measurement horizon for each channel?
  
• Do I sign off kill-criteria before starting the sprint?
  
• Do we have a weekly 30-minute metrics review?
  

 When the team understands zones of responsibility, and I set the direction — even difficult periods pass calmly and sustainably for the business. — Sofia Rozhko, serial entrepreneur

Lesson Conclusion

Expensive specialists can enhance, but never replace the founder as the bearer of vision. Delegate the hands — not the responsibility for meaning.  — Sofia Rozhko, serial entrepreneur

In short: you define the vision and the framework — the team executes. That’s how marketing stops being “magic” and becomes a manageable, profit-generating system.

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Lesson 4. A Website Should Sell, Not Just “Look Pretty”: Technical Specs, Conversion Logic, and Roles — So You Don’t Pay Twice

If there’s no clear technical task, sales logic, and role division, you’ll end up with a “beautiful picture” that doesn’t sell, endless edits, and a double budget for rework.

We handed the website to two teams — technical and ‘branding’ — but without a unified conversion logic. It turned out beautiful, but the product wasn’t revealed, and we had to redo everything.  — Sofia Rozhko, serial entrepreneur

Why Failure Happens

1. No single vision owner (product owner from your side) → “gray zone” between design and development.
   
2. The tech brief = “make a website” → no sitemap, conversions, states, integrations, SEO/analytics.
   
3. Branding detached from sales → site looks nice but doesn’t answer “what/for whom/why now.”
   
4. “Taste-based” approval → without KPIs or acceptance criteria, any edit seems “logical,” and deadlines stretch forever.

When you start without agreed rules and a clear list of deliverables, you’re basically signing up for extra costs. — Sofia Rozhko, serial entrepreneur

What Must Exist BEFORE Starting (Otherwise Don’t Start)

Now I always ask for the full list of what’s included in the job — otherwise, revisions turn into a second development. — Sofia Rozhko, serial entrepreneur

Technical Task Skeleton That Saves the Budget

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Roles and Responsibilities

Sprint Process with “Gates”

1. Discovery (1–2 weeks): goals, KPIs, ICP, sitemap, content skeletons.
   Gate A: all signed → proceed.
   
2. UX/Wireframes (1–2 weeks): flow, prototypes, CTA/form map.
   Gate B: approved on user tasks → proceed.
   
3. UI/Design System (1–2 weeks): layouts + adaptive, states.
   Gate C: “pixels” tied to KPIs → proceed.
   
4. Dev + QA (2–4 weeks): build, integrations, performance, analytics.
   Gate D (UAT): checklists, Lighthouse ≥ X, events tracked correctly.
   
5. Go-live + 30-day monitoring: A/B small tweaks, stabilization.
   

Checklist of a Page That Sells

• Hero: clear offer, target audience, 1–2 strong proofs, visible CTA above the fold.
  
• Problem → Solution → Proof: cases, reviews, logos, certifications.
  
• CTA on every screen: one primary action, one secondary.
  
• Forms: short, with error/success states, autofill, validation.
  
• Mobile-first logic: large tap targets, easy navigation, speed.
  
• Analytics: events on clicks/scrolls/submissions, real-time tracking.
  

“Red Flags” — Stop Signals Before You Start

• Brief sounds like “make us a website/landing” — no goals or KPIs.
  
• “We’ll design first, write later” (no content skeleton).
  
• No analytics/event plan or acceptance checklist.
  
• 5+ people “approve the design” — means there’s no single PO.
  
• Blurred responsibility — unclear who owns what in RACI.
  

Mini-Playbook: How Not to Pay Twice

1. Prepare a 1-page brief: goal, KPI, ICP, offer, CTA.
   
2. Approve sitemap and flow with CTAs/forms and all states.
   
3. Create content skeletons before design (headlines, theses, proofs).
   
4. Define RACI and acceptance criteria before starting.
   
5. Measure speed and analytics as part of acceptance (not “later”).
   
6. Keep a decision log: what/why was approved to avoid infinite revisions.
7. Start with an MVP landing page, collect data, then scale with templates and sections.
   

Lesson Conclusion

 A website is a sales tool. If you start without a tech spec, conversion logic, and defined roles, you pay twice — with money and time. — Sofia Rozhko, serial entrepreneur

In short: start with the goal and flow, then design and development. One decision owner, strict acceptance criteria, measurable KPIs. That’s when the website is not just “beautiful” — it makes money.

Lesson 5. Offline in a New Country: Ethics, Reinvestment, and Space Planning Against Losses

When an offline location “breaks” against local regulations, you face three temptations: to “somehow keep working,” to shut down everything, or to rebuild the model ethically and stronger. Sofia’s decision: don’t go into the “gray zone,” agree with a co-investor on reinvestment, and choose a better space where the planning itself increases potential revenue.

I chose a path that lets me sleep peacefully: not to work where it goes against the rules, but to find another place — even if that means doing the renovation twice. — Sofia Rozhko, serial entrepreneur

What an Offline Crisis Looks Like

1. Non-compliance of the space with regulations → either “somehow work” or stop and rebuild.
   
2. Unplanned costs (second renovation, search) → raises the issue of reinvestment.
   
3. Client experience suffers (noise / open zones) → value and price drop.
   

My rule is to sleep peacefully. If the format forces me to break internal ethical norms — it’s not my path. — Sofia Rozhko, serial entrepreneur

Decision Matrix

“I calculated: closing would cost more than reinvestment. My co-investor agreed — better to add funds and come out stronger.” — Sofia Rozhko, serial entrepreneur

Why New Planning = Better Economics

The problem with the old space was “incomplete” rooms (noise, no privacy). The new location allowed separating areas with doors and creating full-value rooms for higher-priced procedures.

When I saw that the new layout added one more full room in the highest-priced segment, the economics clicked instantly. — Sofia Rozhko, serial entrepreneur

Anti-Crisis Algorithm (Step-by-Step)

1. Ethics > “Somehow work” — immediately discard any option that breaks regulations.
   
2. Quick partner call: honestly outline the “close / reinvest” scenarios, amounts, and motives.
   
3. Unit economics on a napkin: calculate number of full workplaces × rate × utilization — before / after.
   
4. Aggressive search: view several properties daily; pre-define criteria for “handshake and sign.”
   
5. Trusted local manager: delegate authority to sign immediately if checklist is met.
   
6. Renovation done right the first time: include insulation, zoning, and process requirements upfront.
   

We viewed 3–4 spaces every day for several weeks. When my manager saw the right one, I allowed her to sign the contract on the spot — I trusted her. — Sofia Rozhko, serial entrepreneur

Space Selection Checklist (for Beauty / Office-Room Format)

General requirements derived from the case:

• Zoning / isolation: separate doors for each room, no noise transfer between floors/zones.
  
• Procedure privacy: no “staircase” half-zones — only full rooms.
  
• Capacity for economics: sufficient number of full rooms in “premium” categories.
  
• Legal compliance: meets technical and licensing requirements for your activity.
  
• Operational logistics: water / electricity / ventilation, restrooms, convenience for staff and clients.
  
• Lease terms: flexible entry/exit, clear deposit, realistic renovation deadlines.
  

Mini-Playbook for Reinvestment

1. Define your “point of no return” — how much you’d lose if you stopped today.
   
2. Calculate “after relocation” — number of full workplaces × ARPM (average revenue per month).
   
3. Negotiate with your co-investor: amount, stages, repayment/dividend terms.
   
4. Make a cash plan: separate budget for the second renovation + 10–15% buffer.
   
5. Create an urgent timeline: search (days), signing (hours), renovation (weeks).
   
6. Communicate with team/clients: clear deadlines, “why this is better,” relocation plan.
   

I wasn’t down to my last money — I lived off another business, so I could invest more. But I still made the decision based on numbers and principles. — Sofia Rozhko, serial entrepreneur

“Red Flags”: When to Stop and Rethink

• The space fails to meet regulations — “somehow” options are rejected.
  
• “Incomplete” workplaces that hurt UX and pricing — such a location can’t sustain the economics.
  
• No “safety cushion” or co-investor — build a financial plan first, then act.
  
• Contract offers no flexibility (rigid terms / penalties) — risk level is too high.
  

Quick Location Evaluation Formula 

Revenue/month ≈ (Number of full rooms × average price × average occupancy) − (rent + salaries + operations + monthly repairs/amortization).

If the new layout adds even 1–2 full rooms in a high-ticket segment — that’s often the difference between “zero” and “profit.”

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Lesson Conclusion

Never compromise on ethics and compliance — it always costs more. It’s better to reinvest and move to a space where planning and rules work for you. — Sofia Rozhko, serial entrepreneur

In short: ethics as a filter, numbers as the argument, planning as a profit lever. That’s how an offline business not only survives — it becomes stronger.

Lesson 6. Marketing Is Measured Over the Long Term: LTV, “Long Tails,” and the Quarter–Year Horizon

A monthly snapshot often lies. A channel that “didn’t bring” sales in 30 days can return them later due to a long customer path — and look strong on a quarterly or yearly horizon. Therefore, decisions to “turn off / scale” must be made by LTV and cohorts, not by yesterday’s ROAS.

We switched to counting every single number. Over a short stretch some channels looked weak, but over a year they were the ones that ‘pulled’ sales through the funnel. — Sofia Rozhko, serial entrepreneur

Why a Month Misleads

1. Long decision cycles. People don’t see you once: touch → subscription → event → purchase. Part of purchases gets attributed to other channels if you look only at last click.
   
2. Upsells and cross-sells. A product that starts “modestly” can pay back through upsell/cross-sell in subsequent months.
   
3. Community and content effect. Investments into the “top of the funnel” work with a delay; their revenue is visible on cohorts, not in a single report.
   

What looked ineffective in the monthly report ended up delivering sales. Conclusions should be drawn over a wider interval. — Sofia Rozhko, serial entrepreneur

‍How to Look Correctly: Three Measurement Horizons

Payback can be longer — look for your ‘20%’ at large scale, not in a short slice. — Sofia Rozhko, serial entrepreneur

Minimum Set of Metrics (No Fanaticism, But Daily)

Mini-Playbook of Channel Analytics

1. Open an “annual ledger.” Evaluate any channel in three windows: week / month / quarter–year.
   
2. Build cohorts. Fix the month of first touch and watch how that cohort buys at 30/60/90/180 days.
   
3. Track upsell/cross-sell. Tie additional purchases back to the initial channel.
   
4. Set payback boundaries. What payback term is acceptable for you? Decide within those bounds.
   
5. Don’t mix “hands” and strategy. A channel doesn’t live by creatives alone; if the message and offer are off-target — change the vision, not just the creative.
   

We started counting every number — and that showed it was too early to cut a channel by the month. Some stories pay back later. — Sofia Rozhko, serial entrepreneur

Table: Channels × Evaluation Horizon

“Red Flags”: When Your Numbers Deceive You

• You evaluate a channel by last click and cut the top of the funnel.
  
• No cohorts — you see only “today’s” sales.
  
• You confuse turnover with profit: scaling eats margin.
  
• Kill-criteria are undefined — unprofitable campaigns live for months.
  
• No clear test budget — you either “pour everything in” or fear trying.
  

Clear Decision Rules

• Scale if over a quarter the cohort hits LTV/CAC ≥ your threshold and payback is within bounds.
  
• Freeze/rework if the month is “red,” but there are signs of assists and upsell — recalc offer/creative and give the channel one more cycle.
  
• Turn off if two cohorts in a row fail to reach the LTV/CAC threshold and there are no assists.
  

Don’t cut a channel prematurely: for us it was the ‘long’ stories that made the result when we looked at a year, not a month.  — Sofia Rozhko, serial entrepreneur

Daily Discipline (So All This Works)

• 10 minutes daily — log the numbers and check campaign “health.”
  
• Weekly — a short review: what we launched / what we learned / what we switch off / what we scale.
  
• Monthly — close the month and recalc limits.
  
• Quarterly — cohorts and LTV, decisions on the channel mix.
  

Lesson Conclusion

You have to count everything — and for long enough. Only then is it clear what truly works and what eats the margin. — Sofia Rozhko, serial entrepreneur

In short: look beyond a month. Measure LTV and cohorts, keep test discipline, and make decisions by numbers, not mood. That’s how marketing starts to earn, not just “look impressive.”

‍Lesson 7. Cash Flow ≠ Profit: Think in Quarters, Invest Only After Closing the Month

A “hot” month with explosive sales can end at zero or in the red because ads, labor hours, and operating costs ate the margin. A “quiet” month, on the contrary, can yield a clear plus thanks to upsells and lower expenses. Therefore, make investment decisions only after you’ve closed the month, and evaluate effectiveness on a quarterly horizon.

I clearly realized: the number of sales in a month does not equal profit. From that moment I invest only after month-end closing and look at results by quarters. — Sofia Rozhko, serial entrepreneur

Why Cash Flow Gets Confused with Profit

1. High turnover ≠ high margin. As sales grow, variable costs (ads, team hours, logistics) grow too — the net result “thins out.”
   
2. Upsells lag in time. “Quiet” months make up margin via upsells, subscriptions, repeat purchases.
   
3. Emotional investments. On the wave of “everything’s flying,” it’s easy to spend in advance — and fall into a cash gap.
   

We had months that felt like ‘bomb-sales,’ but the final line was zero. The next month, without overdrive, turned out more profitable — thanks to upsells and lower costs. — Sofia Rozhko, serial entrepreneur

Working Frame: Month = Control, Quarter = Evaluation

I switched to thinking in quarters — decisions become calmer and more accurate. — Sofia Rozhko, serial entrepreneur

Signal → Cause → Action

I invest money only into the next month — after I’ve closed the current one and seen the real numbers. — Sofia Rozhko, serial entrepreneur

Your “Monthly Closing” Ritual (60–90 min)

1. P&L by products: revenue, cost of goods, margin, contribution to profit.
   
2. Cash flow: what came in/went out, taxes/salaries/rent, risk of gaps.
   
3. Decisions for month +1: test/investment limit, what we pause, what we scale.
   
4. Action log: why you made the decision (so you don’t “bounce” back and forth).
   

When you see turnover, limits, and real profit — decisions are much easier, and your mind is calm. — Sofia Rozhko, serial entrepreneur

“Red Flags” — When You’re Playing with Fire

• You make investment decisions before month-end closing.
  
• You judge success by turnover, not by margin/profit.
  
• You don’t track upsells and their contribution to the quarterly result.
  
• You mix personal and business money — there’s no real picture.
  

Finance is not a verdict about you as a person. Every business has failures and investment periods. What matters is to know what’s happening and choose your steps consciously.  — Sofia Rozhko, serial entrepreneur

Mini-Playbook: How Not to Burn Profit in a Successful Month

1. Fix the rule: no new spending until the month is closed.
   
2. At the peak, direct part of cash into reserve/cushion.
   
3. Any investment must have a limit and payback conditions.
   
4. Check that “fast” revenue hasn’t broken quality and service (or it will roll back the next months).
   

Lesson Conclusion

When I close monthly and evaluate quarterly — I run the business without panic: I decide by numbers, invest on time, and don’t confuse turnover with profit. — Sofia Rozhko, serial entrepreneur

In short: close the month → set a limit → invest; evaluate results by the quarter. That’s how you keep cash flow and profit under control.

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Control the Numbers — and You Will Control the Business

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If you boil all the lessons down to one principle — count and act from data, not from feelings. That’s what gives peace of mind, faster decisions, and a healthy margin.

Frequently Asked Questions

1) Where should you start financial accounting if you haven’t counted anything before, and how do you keep a 10-minute daily discipline?

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Start with simple and regular.

• Separate money: separate accounts/cards for personal and business.
  
• Set categories: income/expenses by directions, salaries, rent, ads, consumables, etc.
  
• Daily ritual (10 minutes): log all transactions for the day — even the “small stuff.” That’s where it leaks.
  
• Once a week: review what “ballooned” (ads, consumables) and tweak immediately.
  
• At month’s end: close the month, calculate profit, fix the investment limit for month+1, top up the reserve.
  
• Iron rule: no new spending until the month is closed.

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2) How to understand that a complementary product is diluting your niche, and what to replace it with without large CapEx?

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 Check the idea by 4T:

• Task: what single customer problem are you solving with this add-on?
  
• Target: is it the same segment where you are strong, or “everyone”?
  
• Trip: does the client have to travel/plan/spend time? Any extra step — minus conversion.
  
• Trade-offs: are you sacrificing focus, margin, positioning?

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If at least two points are “red” — don’t go into infrastructure. Replace with lighter formats:

• One-off community events instead of a permanent location.
  
• Partner venues instead of your own space.
  
• Small tests with KPIs (registrations, show rate, upsell) before any scaling.

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3) How to work with expensive specialists/agencies without “draining” the budget: what you must keep, and what to delegate?

‍

Your responsibility:

• Vision/positioning, priorities, budget boundaries, KPIs and kill-criteria.
  
• Final decisions based on sprint results.

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What to delegate to contractors:

• Media buying, production/creative, analytics/dashboards, operational content.

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How to work in a process:

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1. 1-page brief: who it’s for, offer, goals, budget, KPIs, kill-criteria, deadlines.
   
2. Sprint 2–4 weeks with a clear list of hypotheses.
   
3. Weekly review (30 min): what we launched → what we learned → what we turn off → what we scale.
   
4. Decision log: briefly record why you made a decision — this saves money in the next cycles.

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Red flags: “we’ll do it without your participation,” no KPIs/kill-criteria, no access to raw numbers.

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4) How to launch a website that sells: which tech spec and roles do you need so you don’t pay twice?

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 Don’t start without these basic blocks:

• Goal and KPIs: inquiries/demos, target CRs, time to first lead.
  
• ICP + offer: who the page is for, what value and proofs you provide.
  
• Sitemap + UX conversion flow: CTAs, forms, “success/error” states.
  
• Content skeletons before design: headlines, theses, social proof.
  
• RACI: who is responsible/approves/executes.
  
• Acceptance criteria: list of requirements and metrics (speed, analytics, events), UAT checklist.

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Roles:

• Product owner (you/CMO): vision, KPIs, “go/no-go”.
  
• UX/UI: flow, mockups, design system.
  
• Dev/QA: implementation, integrations, speed, testing.
  
• Content/SEO/Analytics: messages, semantics, events, dashboard.

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Start with an MVP landing page, collect data, then build out.

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5) When to switch off or scale a marketing channel: how to count LTV, cohorts, and payback — and not confuse cash flow with profit?

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Look at three horizons:

• Week: technical health (CTR/CPM/first leads).
  
• Month: CAC/CPA, stage-by-stage conversions.
  
• Quarter–year: LTV by cohort, payback, upsell/cross-sell and assists.

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Decision rules:

• Scale if over the quarter LTV/CAC ≥ your threshold and payback is within bounds.
  
• Freeze/rework if the month is “red,” but you see assists/upsell — give the channel one more cycle with a revised offer/creative.
  
• Turn off if two cohorts in a row don’t reach the threshold and there are no assists.

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And remember: cash flow ≠ profit. Make investment decisions only after closing the month, and evaluate channel effectiveness by the quarter — otherwise, you risk shutting down channels that show results in the long run.

Imagine: in six months, your business grows from $17,500 to $65,000 in projected revenue — everything looks great. You have a team, experience, and a model that works. 

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But in a year and a half, you lose everything: investments, prepayments, trust — and the amount of losses reaches more than $1.3 million. More than a million dollars disappears before your eyes, even though it seemed that everything was under control.

It wasn't just a business — it was a blow to my pride and the realization that even the best skills won't save you if you don't see the real picture of the business. — Valeriy Chalyi, entrepreneur, guest on the podcast "If Only I Had Known Earlier"

This story is not about failure, but about a lesson that can save your business and your money. It's about how the scale of a business without the owner's big-picture thinking is a step into the abyss. How the lack of transparent financial control and wrong decisions lead to significant losses.

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Valeriy lifts the veil on real entrepreneurship: mistakes that are not usually talked about, important conclusions, practical tools, and tips that will help you:

• Save money, even if your business is growing rapidly.
• See the real state of your finances, not illusions.
• Make decisions that won't kill your project.
• Develop as an entrepreneur, because you are the main driver of the business.

Red Flags: Do You Recognize Yourself?

• You only look at your bank account, not your financial statements.
• You make plans based on accounts receivable ("they'll pay soon").
• You don't have a reserve for at least two months of fixed expenses.
• You confuse markup and margin.
• Business no longer excites you; you see it only as a source of income.

If you've checked at least two of these points, this article is definitely for you.

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Read on if you are ready to see your business without rose-colored glasses and start real growth.

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Insight 1. Three Reports Without Which a Business Is Doomed to Chaos

Many entrepreneurs are used to looking only at their bank account. If there is money, then everything is fine. But this is an illusion. Only three financial reports give an honest picture of what is really happening.

These three reports are the foundation: cash flow, balance sheet, and P&L. If you don't see where the money is going, how much is actually left, and what the profit is, you are not managing your business. — Valeriy Chalyi, entrepreneur

Even if a business looks profitable, a cash flow gap can occur at any moment. Without transparent reports, an entrepreneur cannot see:

• whether there is money to pay salaries and taxes;
• how much is actually left after loans and debts;
• which products or areas are eating into the margin.

The result is wrong decisions, lost opportunities, and the risk of bankruptcy even at the peak of growth.

How the Three Reports Work in Practice

Imagine a company that sold $50,000 worth of goods in a month. At first glance, this seems like a great result. But what do the reports show?

How to Avoid Financial Chaos

1. Keep track of your cash flow every day. This will tell you whether you will have enough money tomorrow.
   
   
2. Review your balance sheet every month. You will see how resilient your company is to debts and liabilities.
   
   
3. Analyze your P&L weekly or monthly. This will give you an honest answer: is the business making money, or is it just circulating money without profit?
   
   
4. Combine the three reports. Only together do they show the truth: the money in the account, the structure of assets, and the real profit.

Finance is monitoring your business. Without reports, you are running in the dark. With them, you can see where the real money is and where the illusion is. — Valeriy Chalyi, entrepreneur

Insight 2. Cash Is King: Count Only the Money in Your Account

In the financial world, there is a simple but uncompromising truth: cash is king. The money that is actually in your account is the only thing you can count on today. Everything else — accounts receivable, customer promises, signed contracts — is just numbers on paper.

Use only the money you have in your account and count only on that money. All your accounts receivable, all the "he promised to pay me" — will not cover your bills right now. Cash is king. — Valeriy Chalyi, entrepreneur

What Is the Problem?

• The illusion of money. An entrepreneur looks at accounts receivable and considers them an asset. But this is not yet money.
• The "almost paid" trap. The business spends money, counting on payment that may not come on time.
• Double planning. The same money is already "earmarked" for taxes, salaries, and purchases — but in fact, it is not there.

Why Is This Dangerous?

When you make decisions based on expectations rather than facts:

• the risk of a cash gap increases;
• the company may be left without money for critical payments (salaries, rent, taxes);
• the business quickly becomes dependent on loans.

How to Avoid This

1. Keep track of actual balances. Record how much money is in the cash register and in accounts every day.
   
   
2. Separate reserves. Taxes, salaries, and mandatory payments are no longer "your" money.
   
   
3. Be skeptical. Until the customer has paid, assume that you don't have the money.
   
   
4. Make decisions based only on facts. Look at the balance sheet and cash flow, not Excel spreadsheets with forecasts.
   
   
5. Do a weekly liquidity analysis. How much money is actually available today, tomorrow, in a week?

"Money on Paper" vs "Money in Business"

You can't put your business on hold and wait for others to pay you. Money in business is like blood in the body: if there isn't enough of it right now, the body dies. — Valeriy Chalyi, entrepreneur

5 Rules For Managing Money in Your Account

1. Check your balance every morning.
   
   
2. Divide your money into categories: yours, others' (taxes, obligations), and reserves.
   
   
3. Don't spend future money — plan only with actual money.
   
   
4. Enter all expenses and receipts into the management accounting system.
   
   
5. Look at cash flow more often than turnover and P&L.

Insight 3. Reserves and Liquidity: Business Resilience

Most businesses close not because they have no customers or profits. They close when they run out of money here and now. 

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The only protection against this is reserves and liquidity. This is the financial cushion that makes a company resilient: it withstands shocks and even becomes stronger after crises.

A company must have insurance capital — the most liquid thing possible. That is, money that you can take and put into the business as quickly as possible. A must-have — at least two or three break-even points should always be in the account. — Valeriy Chalyi, entrepreneur

What Is the Problem?

• Entrepreneurs spend everything "to zero," believing that money will always come in on time.
• No reserves are formed while the business is growing — and at the worst moment, there is no cushion.
• Without liquid reserves, even a temporary cash flow gap can kill a company.

Why Is This Dangerous?

• One unforeseen month (customer delay, tax surprise, equipment breakdown) can put the business on the verge of bankruptcy.
• The owner is forced to take out loans at 24–60% per annum, which "eat away" at the margin.
• Control is lost: the business begins to be driven by debt rather than strategy.

How to Avoid This

1. Build up insurance capital. The minimum is 2-3 months of fixed costs (rent, salaries, taxes).
   
   
2. Maintain liquidity. Some of the money should be available "here and now," not in the form of goods or accounts receivable.
   
   
3. Separate reserves. Insurance (for force majeure) ≠ reserve (for development).
   
   
4. Use the "other people's money" rule. You can raise capital at interest, but only if you have a clear plan for repayment.
   
   
5. Be disciplined. Do not touch your reserves. They exist for crisis situations.

What Anti-Fragility Looks Like in Finance

I know of at least three businesses that went bankrupt not because they were unprofitable. They simply did not manage to find money at the right moment. A reserve is not a luxury, but a condition for survival. — Valeriy Chalyi, entrepreneur

5 Practical Steps for Creating a Financial Cushion

1. Calculate your monthly burn rate (minimum living expenses).
   
   
2. Multiply it by 2–3 and put that amount into a separate account.
   
   
3. Automate reserve deductions — as soon as money comes in, set aside a portion immediately.
   
   
4. Keep your reserve in currency or highly liquid instruments.
   
   
5. Enter your reserve into a financial system (such as Finmap) to see the real picture, not the "illusion of money."
   
   

Reserves and liquidity are your insurance policy against bankruptcy. 

Insight 4. Distinguish Between Markup and Margin and Calculate the Price of Money

Many entrepreneurs confuse markup and margin. As a result, the business appears to be profitable, but in reality, money is disappearing. And when expensive credit is added to the mix, the business may be operating at zero or even at a loss.

The markup must be 300-400% for the business to survive. And the margin is what remains after all expenses. For example, if you sell a product for $30 with a cost price of $10, it seems that the margin is 200%. But after advertising, salaries, and operating expenses, only 16.6% may remain. And if the loan is expensive, the profit is completely eaten up. — Valeriy Chalyi, entrepreneur

What Is the Problem?

• Markups are often perceived as profit, and money that does not actually exist is spent.
• Loans at 24–60% per annum can eat away at even a good business.
• The owner does not see the real profitability because they do not keep management P&L.

Why Is This Dangerous?

• The business may grow in terms of turnover, but decline in terms of profit.
• If the margin is calculated incorrectly, entrepreneurs can easily find themselves in a cash flow crisis.
• Credit obligations turn growth into a trap: the company becomes a hostage to debt.

How to Avoid This

1. Separate the markup and the margin. The markup shows how much you have added on top, while the margin shows what is actually left after all expenses.
   
   
2. Keep a P&L report. Without it, it is impossible to understand true profitability.
   
   
3. Calculate the cost of money. Before taking out a loan, see how much of your margin it will eat into.
   
   
4. Assess the transaction cycle. If you are returning the money in a month, a high percentage is still bearable. If it is a year, it is fatal.
   
   
5. Be honest with yourself. Consider only what remains "net" after everything as profit.

Markup vs Margin + Impact of Credit

Financial literacy is not about Excel. It's about survival. If you confuse markup and margin, or don't count the cost of money, your business may be killed not by the market and competitors, but by your own mistakes in calculations. — Valeriy Chalyi, entrepreneur

5 Practical Steps

1. For each product, calculate the cost price, markup, and margin.
   
   
2. Include all costs in the price: advertising, logistics, salaries, taxes.
   
   
3. Before taking out a new loan, check whether the margin is enough to cover the interest.
   
   
4. Use P&L in Finmap or another system to see the truth in the numbers.
   
   
5. Teach your team to distinguish between markup and margin — this is basic financial literacy.
   
   

Properly understanding the difference between markup, margin, and the price of money is like having a map and compass on a hike. Without them, you can walk for a long time, but you are likely to end up in a dead end.

Insight 5. Market Fit: Why It Is The Entrepreneur, Not the Product, That Determines the Fate of the Business

In business, it is customary to look for Product Market Fit — when the product and the market coincide. But Valeriy Chalyi's experience shows that this is not enough. A business can grow by hundreds of percent and then collapse in a year and a half, even with a strong team and a proven model.

I realized that there is such a thing as entrepreneur market fit — the relationship between you as an entrepreneur and the market you are entering. In Ukraine, I could launch anything because I had the contacts, understanding, and culture. In Portugal, however, that same knowledge did not work. — Valeriy Chalyi, entrepreneur

What Is the Danger?

Focusing solely on the product creates an illusion of control. You can:

• Find a niche with demand.
• Launch a strong product.
• Assemble a team and set up processes.

...and still lose hundreds of thousands of dollars. Why? Because the entrepreneur himself did not "fit" into the market, since he does not understand local rules, does not have the necessary partnerships, and does not see cultural barriers.

This is exactly what caused Valeriy to lose $1.3 million:

• From $17,500 in projected revenue → to $65,000 in 6 months.
• And after a year and a half — complete loss of business and money.

How Can This Be Avoided?

You need to think beyond "will people buy my product?" You need to honestly assess yourself in the context of the market.

Product Market Fit vs Entrepreneur Market Fit

Practical Steps for Entrepreneurs

1. Audit the market and yourself. Before you start, ask yourself: do I have the resources, network, and knowledge for this environment?
   
   
2. Adaptation. Invest in local connections, study the culture, work with local partners.
   
   
3. Combine the two fits. The product is in demand, and you, as the owner, have trust and authority in this market.
   
   
4. Check your finances regularly. Management accounting will show whether your Market Fit really works or whether the business is only profitable "on paper."

The scale of a business always equals the scale of the owner's thinking. If you don't fit the market, it will simply "eat you alive." — Valeriy Chalyi, entrepreneur

Insight 6. A Business Survives Only When You Love What You Do

For most entrepreneurs, business starts with energy — the idea drives them, a team appears, and each new deal energizes them. But over time, this can turn into a "routine money farm." The entrepreneur begins to see the company only as a "money button." And that's the beginning of the end.

As soon as you start treating your business like a "money button," everyone feels it. The team feels it, and the business itself starts to fall apart. — Valeriy Chalyi, entrepreneur

What Is the Problem?

• The owner's burnout. The business loses its meaning, and energy is spent only on putting out fires.
• Team demotivation. People feel that the owner is working "without enthusiasm."
• Loss of strategic vision. Decisions are made solely to make money here and now.

Why Is This Dangerous?

A business without ideas and meaning cannot withstand a crisis. When problems arise (cash flow gaps, falling sales, competitors), the owner does not have the strength to fight. The result is rapid stagnation and loss of the company.

How Can This Be Prevented?

1. Formulate the "why." Write down why your business exists (besides money). This is a benchmark for you and your team.
   
   
2. Set "game goals." Business is a game with levels. Set steps for 3-6 months: a new market, a new product line, increased margins.
   
   
3. Be present in the process. Don't just take profits, but also develop the product, team, and service.
   
   
4. Measure the energy of the business. Hold regular meetings with the team, listen to customers, and look at the quality of decisions.

"Passion for Business" vs "Money Button"

The entrepreneur sets the energy. If he loves his business, the company grows. If he sees only money in it, the business dies. — Valeriy Chalyi, entrepreneur

Insight 7. Rapid Growth Can Destroy a Business

Rapid growth is every entrepreneur's dream. But in reality, it can be the biggest threat. When the numbers are flying high, it seems like everything is under control. However, rapid growth often hides weaknesses that explode a year later.

We took an account that brought in $17,500 and made $65,000 in six months. And then it seemed that we could do anything. A year and a half later, we lost both our business and our money — over $1.3 million. — Valeriy Chalyi, entrepreneur

What Is the Problem?

• The euphoria of growth. The owner feels an "omnipotence effect" and starts taking risks without analysis.
• Financial trap. More sales mean more inventory, expenses, and liabilities. If there is no reserve, growth will devour the business.
• Loss of focus. The entrepreneur launches new directions instead of stabilizing the main one.
• The team cannot keep up. Scaling overloads people and the management system.

Why Is This Dangerous?

Uncontrolled growth is not success, but a fast track to bankruptcy. When a company grows too fast:

• accounts payable and cash flow pressure increase;
• the owner starts counting "paper profits" instead of real money;
• any crisis (returns, supply disruptions, falling sales) becomes fatal.

How to Prevent Collapse During Growth

1. Count, don't feel. Instead of "we are growing," measure real cash flow, liquidity, and liabilities.
   
   
2. Build up reserves. At least 2-3 months of fixed costs should remain untouched.
   
   
3. Stay focused. Don't open new areas until you have worked out and consolidated the previous one.
   
   
4. Control your margin. High turnover with low margins = the illusion of growth.
   
   
5. Regularly check your financial health. Cash flow, balance, and P&L should show the same picture.

"Healthy Growth" vs "Dangerous Growth"

We believed we were immortal. And that belief destroyed us. — Valeriy Chalyi, entrepreneur

5 Steps to Counteract Dangerous Growth

1. Every week, look at cash flow, not turnover.
   
   
2. Divide the money in your account: what is yours and what are your obligations.
   
   
3. Set aside at least 10-15% of your income as a reserve.
   
   
4. Before investing in a new direction, check it on P&L.
   
   
5. Regularly ask yourself, "What if sales drop by half tomorrow?"

Financial Transparency Is an Entrepreneur's Main Superpower

Valeriy Chalyi's story is not about losing $1.3 million. It's about how even an experienced entrepreneur can make mistakes if they don't see the real financial picture. And most importantly, these mistakes can be corrected if the right conclusions are drawn.

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What does this case show?

• Business is not just about money. When the owner loses his love for the business and sees it only as a "money machine," the team and the business begin to fall apart.
  
  
• Rapid growth is more dangerous than stagnation. Without a financial control system, even explosive growth can lead to disaster.
  
  
• Cash is king. Only money in the account can be considered real. Everything else is an illusion.
  
  
• Reserves make a business resilient. A cushion of 2-3 months' expenses can save a company in a crisis.
  
  
• Financial literacy is a must. Understanding the difference between markup and margin, knowing how to calculate the cost of money and evaluate loans determines whether a business will survive or not.

Management accounting is not bureaucracy. It is a navigator that allows an entrepreneur to see the way forward rather than moving blindly. It allows you to see how much money you really have, how much you need to reserve, where cash is "leaking," which projects are profitable, and which ones only create the illusion of profitability.

Finance is insight. It is the ability to run a business with your eyes open. Without it, you are simply driving in the dark and hoping you don't crash. — Valeriy Chalyi, entrepreneur

If an entrepreneur makes finance the center of their attention, they gain three key advantages:

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1. Resilience — the business does not collapse at the first crisis or cash flow gap.
   
   
2. Speed — decisions are made based on numbers, not intuition.
   
   
3. Control — you understand where every hryvnia goes and how it affects your profits.
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Therefore, the main lesson is simple: you cannot leave control over your money to chance. You can rebuild your business, but you cannot get back lost time, nerves, and reputation.

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Financial accounting is about the future of your business, your freedom as an entrepreneur, and your confidence in tomorrow.

Frequently Asked Questions

1. If my business is growing, why is there less money in my account?

Because growth requires investment: in warehousing, production, marketing, and your team. Sales are increasing, but funds are "stuck" in inventory or accounts receivable. If you don't take this into account in advance, it's easy to end up with a cash flow gap.

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2. How much reserve capital should an entrepreneur have?

The minimum is a reserve equal to 2-3 months of the business's fixed costs. If your break-even point is $30,000, your reserve should be at least $60,000-90,000. This makes the business resilient and allows it to survive a crisis.

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3. Why is it important to distinguish between markup and margin?

Because margin shows real profit. Markup is simply an increase in price above cost. For example, a product costs $10 and sells for $30. Markup = 200%. But after expenses, only $5 may remain — that is, the margin is only 16.6%. Without proper calculation, it is easy to break even or operate at a loss.

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4. What reports are essential for a business?

Three basic reports:

• Cash flow — shows where the money is going.
• Balance sheet — shows what the business has at a given moment.
• P&L (profit and loss) — shows how profitable the company is.

Together, they provide a 360° picture and allow you to make decisions based on facts.

What do you rely on when it’s time to make a financial decision?
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For the accountant, it’s tax regulations. For the workshop manager — technical cards, the production schedule, the manufacturing plan. But what about you, the owner? An Excel file with no update date? A message from a supplier in your messenger? A negative bank balance?

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In manufacturing, money moves daily: prepayments to suppliers, employee advances, countless small expenses, payments to contractors, raw material purchases, rent, loans… And without a system, all of this turns into financial chaos.

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Let’s break down the key financial problems manufacturing companies face — and show how Finmap helps bring order to the numbers, reduce chaos, and make confident decisions.

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How to Bring Manufacturing Finances Into a Single System

In manufacturing, financial data accumulates across dozens of sources: bank accounts, CRMs with orders, Excel sheets with production line plans, inventory management, accounting. Often this is topped off by the personal cards of owners or managers.

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As a result, the picture is fragmented: to understand the real state of affairs, you have to manually reconcile inventory balances, supplier orders, client payments, and production costs.

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Why this is risky for the business:

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1. Loss of control over working capital — at any moment, you may discover that there's less money in the account than expected.
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2. Risk of cash gaps — raw material purchases and overhead costs are paid before payments from clients come in.
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3. Cost calculation errors — due to incomplete data, it's hard to assess the real profitability of orders or production lines.
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4. Financial chaos between departments — procurement, sales, and production all keep separate records, so the owner sees no single source of financial truth.
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5. Lost time for the owner — instead of growing the business, you’re stuck reconciling spreadsheets and checking balances manually.

All Accounts Under Control — From Bank to Warehouse

The first step toward financial transparency is consolidating all company accounts into a single system. In Finmap, you can add:

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1. ‍Bank accounts, sole proprietorships, cash registers, and cards — and see their balances in real time. Use integrations with banks and payment systems to automate data collection, and import statements to streamline work with banks that don’t integrate.
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2. Petty cash and advance payments — to account for money temporarily held by employees. Add subordinates to the system and set flexible access rights to understand how each department or workshop is handling funds.
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3. Virtual warehouse account — which shows the value of goods or raw materials on hand in monetary terms. Track the movement of goods by value and deduct the cost of materials that were actually consumed.

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Thanks to this, you immediately see how much money is available right now, where it’s stored, and how much is “frozen” in inventory. Balances update automatically and regularly, and you can reconcile all figures in seconds — from any device, anywhere in the world.

Connect Systems That Influence Your Money — and Gain Full Transparency

To get a complete financial picture, it’s not enough to just see account balances — you also need to understand what financial processes are happening across the business. In Finmap, this can be done through the open API.

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You can connect the following to Finmap:

• ‍CRM system — so deals automatically sync with your financial records.
• ‍Inventory management system — to track purchases, raw material write-offs, and see their impact on cash flow.
• ‍Accounting, document management, or other services — if you need visibility into additional business processes.

You can set up the integration yourself or use Finmap’s in-house integration specialist, who will adapt the system to your business structure.

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As a result, you get a unified system that brings together everything that affects your finances: sales, expenses, warehouse balances, settlements. At the center — Finmap, as the single source of financial truth.

Control Over Settlements With Clients and Suppliers

In manufacturing, money rarely moves in sync. You've already paid for raw materials, logistics, salaries — and the client will pay in 15–30 days, or even later. All of this creates cash gaps: money seems to be in circulation, but your accounts are empty.

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At the same time, managing settlements is difficult. Some clients delay payment, others ask for deferments. Suppliers demand prepayment and enforce strict deadlines.

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Without systematic tracking, it's easy to miss a debt, confuse payment dates, or lose credibility with partners. ‍

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Here’s what that leads to:

• You don’t know who owes you and how much — instead of a clear debtor list, you search through messages or spreadsheets.
• You might miss a payment deadline and lose a supplier — because obligations fall out of sight without a unified payment calendar.
• Contractors call before you remember the invoice — damaging your reputation and complicating future cooperation.
• You can’t see when to expect incoming payments or how to plan outgoing ones — it’s all based on guesswork instead of numbers.
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To avoid falling into the trap of cash gaps and losing control over settlements, you should focus on three essential steps. Here’s what to implement — and how it’s done in Finmap:

Why Should You Calculate DSO?

DSO answers a simple but critical question: How many days after a sale do you actually receive the money in your account?

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The higher your DSO, the greater the pressure on liquidity and working capital.

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According to Kaplan Group research:

42% of companies have a DSO over 46 days — and among large manufacturing firms, that number is as high as 70%.

When this indicator stretches out, it's not just “paper debt” — it’s real money you can’t use for buying raw materials, paying salaries, or growing the business.

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DSO benchmarks for different types of production:

If you control your DSO — you control your liquidity. If not — you’re operating in debt, even if you show a profit on paper.

What Actually Drives Profit in Manufacturing

In manufacturing companies, it’s often difficult to determine which specific products, orders, or business lines are truly profitable.

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The reason — lack of detailed tracking by financial responsibility centers or projects.

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Frequently, both direct and indirect costs (purchases, wages, logistics, rent) are accumulated in a general production account without being allocated to specific product types or customer orders.

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As a result:‍

• Loss-making products are “hidden” among profitable ones, distorting the financial picture.
• Budget is spent on unprofitable areas that don’t generate margin.
• Management decisions are made based on intuition, not analytics.

This is a systemic issue that erodes profitability — even when the company is growing in production or sales volume.

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According to McKinsey:‍

About 40% of executives reduce their product portfolios to lower complexity and increase overall profitability.

Such decisions cannot be made based on gut feeling — they require solid data.

How Finmap Helps Organize Effective Project-Based Management

That’s exactly what the Projects report in Finmap provides. You see each direction — along with its components (subprojects) — as a separate financial unit: income, expenses, cost of goods sold, operating profit, and profitability.

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A “project” doesn’t have to be just a business line. In your company, it could be:

• ‍A specific type of product — for example, production of kitchen furniture, children’s beds, or metal structures.
• ‍A batch for a specific client — a custom order with its own budget, timeline, and expenses.
• ‍Pilot production of a new product — to assess the economic feasibility of scaling it into mass production.
• ‍A contract or tender — such as supplying products to a government buyer.
• ‍Outsourced production — when your company manufactures goods for other brands.
• ‍A specific workshop or production line — to evaluate the efficiency of different departments.
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The importance of project-based management isn’t just a theory. Research from ScienceDirect confirms how unevenly different products contribute to a company’s profitability:

On average, only about 20% of a manufacturing company’s products generate more than 150% of its total profit. This means the remaining 80% either barely break even — or are actually loss-making.

Can you confidently name which of your products generate the most profit?

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Financially strong manufacturing isn’t about total revenue — it’s about analytics that clarify what should be scaled and what should be cut.

From Chaos in Excel to Structured Management: The Case of Practik

PRACTIK is a Ukrainian producer of innovative food for dogs and cats, positioning its product as a complete meal — not just pet feed. To ensure high-quality standards, the company built two factories from scratch in Ukraine — allowing full control over every stage of production.

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The company manufactures products in two main directions: food for cats and food for dogs. Each direction has its own product lines, which are constantly updated and improved.

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Before implementing Finmap, the company tried to manage its finances in Excel. But as the business grew and revenue sources multiplied, the spreadsheets could no longer keep up — automation became impossible, and gaining a full financial picture was out of reach.

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However, it wasn’t just about automation. The company had deeper reasons to move toward systematic financial management:

• ‍Cash flow couldn’t be tracked manually — income from different directions merged into a single flow without breakdowns.
• ‍No centralized analytics for decision-making — expenses weren’t recorded in one system.
• ‍Uncertainty about balances and investment funds — forecasting available resources was difficult.
• ‍Multiple business lines, but no unified system — real estate rental, investments, and B2C sales all needed a single financial interface.
• ‍Need for delegation — finances were handled solely by a co-owner, which limited growth

Once the company decided to implement structured financial management, they turned to Finmap’s financial manager. He helped build the right structure and configure key processes — tailored to the specific needs of their business.

Control and financial management were then delegated to an internal specialist, Natalia, who is now responsible for the company’s finances and shares her experience working with Finmap:

Once we started seeing all income and expenses in one place, it became much easier to make decisions. Now we understand how much money is available, where overspending occurs, and how prices change month to month.

What Changed After Switching to Finmap

After switching to Finmap, the company gained not just a convenient tool — but a complete financial management system. ‍

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Here’s what changed in practice:

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1. Practik gained full control over its finances. All income and expenses are now in one system, with transparent analytics and clear balances.
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2. Management can now see how much money is available for investment, where overspending happens, and how purchase prices are changing — enabling decisions based on numbers, not guesses.
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3. Financial processes became structured: the team reviews reports monthly, analyzes expenses, and plans the budget based on real-time trends.
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4. Cash gaps are no longer a surprise — only expected and prepared for. Delegating financial management allowed the owners to focus on scaling the business.

With Finmap, we’re putting order not only into our numbers, but into the entire business. It gives us confidence, stability, and the ability to move forward. —  the Practik team summarizes

Finmap — A Tool for Control, Confidence, and Growth

Financial management is the answer to daily questions: Can we make this purchase today? Will we have enough cash for payroll? Which product line should we scale, and which one should we shut down?

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In manufacturing, these decisions are costly. And mistakes don’t happen due to lack of experience — but due to lack of data.

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Finmap helps consolidate all your financial information into one system, see the real-time picture, build forecasts, and avoid critical errors. That’s why it’s chosen by manufacturers who want to grow — not blindly, but systematically.

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Book a free consultation with a Finmap expert — and see how it works for your business.

Frequently Asked Questions

1. Why switch from Excel if it works?
Excel doesn’t provide a current picture — data gets outdated quickly, it’s hard to consolidate reports from different sources, and there’s no automation. It works up to a certain scale, but then starts slowing growth.
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2. How do I know how much money can be invested vs. kept for operational costs?
You need a system that shows available balances and upcoming obligations. This allows you to make informed investment decisions without risking missed payments.
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3. Our raw material prices are constantly changing. How can we track when and why costs are rising?
Regularly recording expenses in a structured format lets you see purchasing trends and respond to changes in time.
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4. How do I identify where money is being lost if sales are stable but profit isn’t growing?
You need records that show expenses by category and business line. This will help identify overspending, hidden costs, or inefficient processes.
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5. Can financial management be delegated if we don’t have a CFO?
Yes — the key is setting up a proper accounting structure. From there, it can be managed by a responsible person: an accountant, office manager, or administrator. The business owner will receive reports in a clear and convenient format.

When your business operates in three countries, completes 1,500 shipments every month, has a team of 70 people, and simultaneously launches an AI-powered EdTech product — it seems like success and everything under control. Until suddenly, the account balance hits zero, there's a cash gap in the company, and you have no idea where the money went.

We had turnover, active sales, new contracts. But one day I opened the account and saw: there was no money. And this while the business was running at full capacity. — Oleksandr Stupakivskyi, entrepreneur, guest on the podcast ‘Wish I’d Known This Earlier’

Oleksandr is the co-founder of a logistics company operating in the markets of Ukraine, the USA, and Europe. His business was growing dynamically: thousands of shipments every month, team expansion, entry into new markets.

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But alongside the growth came a cash gap, $175,000 lost due to an unsuccessful partnership, and constant stress from not understanding the business's finances.

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In this article, Oleksandr shares insights and lessons he learned firsthand:

• how a single cash gap can put a large-scale business on pause,
• why the feeling of “we're doing fine” doesn't work without numbers,
• how financial management with Finmap helped systematize operations and reveal the actual situation,
• and why partnerships are a zone of increased financial turbulence.

This isn't a finance textbook. It's an honest story with mistakes, failures, and real tools that help you avoid losing control of your business when everything seems fine.

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Read on if you're also ready to look at your business without illusions.

Insight 1. Even a Large-Scale Business Can Operate in the Red

Growing revenue ≠ more profit. This realization comes painfully. It was exactly this insight that led Oleksandr to face a cash gap during a period of active growth.

We were growing very fast. But because of that, we started to sink. We simply didn’t have time to understand what was really happening with the money. — Oleksandr Stupakivskyi, entrepreneur

What happened:
More shipments meant more expenses for prepayments, fuel, salaries, and administrative costs. Meanwhile, client payments often came with delays. This created a financial chasm.

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A cash gap is the most dangerous financial trap for small and medium-sized businesses. It means that your current expenses aren’t covered by incoming payments. And if you don’t control this process, you risk going into debt, losing partners, or even shutting down the business.

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Why is it important to track potential cash gaps daily?

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Many entrepreneurs manage finances “after the fact” — looking at reports, balances, and profits at the end of the month or quarter. But financial control must be preventive, not reactive.

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1. Real-time financial management helps predict when the money will run out and make urgent decisions.
2. Cash flow forecasting allows you to prepare for seasonal fluctuations or payment delays.
3. Financial reserves are your safety net against cash gaps and unforeseen expenses.

When we first encountered a cash gap, it was a shock. We couldn’t understand how, with such sales volumes, there was no money. Now we know — without systematic financial management, a business is doomed to chaos. — Oleksandr Stupakivskyi, entrepreneur

How to Prevent a Cash Gap — Key Actions

Read more on how to avoid cash gaps and prevent bankruptcy.

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Before using Finmap, Oleksandr’s company:

• had no clear understanding of the balance between income and expenses,
• didn’t track accounts receivable,
• didn’t build a cash flow forecast.

After implementing financial management:

• there was a clear picture of expenses and profits for each business direction,
• it became obvious which projects were draining money and which were generating it,
• the financial plan made it possible to anticipate a cash gap and prepare a cushion.

Remember: a cash gap is not just a temporary problem but a signal to change your business’s financial strategy. If you ignore it, you risk losing everything you’ve built.

Insight 2. A Partnership Without a Contract — A Costly Mistake

A successful business in one country often creates the illusion that everything will follow the same scenario in another. But when it comes to partnerships, intuition is a poor advisor if it’s not backed by clear agreements on paper.

I had a positive experience with a partner in Ukraine and thought it would be the same in the US. But it cost me $175,000 and a year of lost time. — Oleksandr Stupakivskyi, entrepreneur.

When launching a business in the US, Oleksandr chose a partnership model without a clear contract, defined roles, or financial guarantees. The result — mismatched expectations, damaged relationships, lost time, reputational risks, and major financial losses.

Why is a partnership without a contract risky?

Many entrepreneurs neglect legal formalization at the start: saying things like “we’re friends,” “we’ll figure it out as we go,” or “we don’t want legal hassle.”

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But business without a clear contract leads to:

• No clarity on who is responsible for key areas (finance, team, marketing).
• No conflict resolution mechanism.
• No record of investment contributions or ownership shares.
• No understanding of what happens if one partner exits.

All of this lays the groundwork for financial losses, legal disputes, and toxic relationships.

What should be documented in a partnership agreement?

How to Protect Yourself and Your Business in a Partnership

1. Document everything from the start. Don’t avoid difficult conversations. An agreement without written confirmation is just an illusion.
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2. Involve lawyers. Even if it’s a shoestring startup — a written contract = peace of mind.
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3. Agree on exit mechanisms. Because every partnership either works or ends.
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4. Maintain separate financial management for each partnership-based business. So you can see the real numbers and react in time.

After that failed experience, I never take a single step without a clear contract. Even if everything starts with a handshake — it ends on paper. — Oleksandr Stupakivskyi, entrepreneur

Partnership is not just a shared dream. It’s legal, financial, and reputational responsibility. And if you don’t agree on terms upfront, you risk losing much more than money.

Insight 3. Money in the Account ≠ Profit

Many entrepreneurs fall into the trap: they see money in the account and think the company is profitable. But having funds doesn’t mean it’s your income. Often, it’s someone else’s money, reserves for obligations, or simply an illusion of financial stability.

‍I thought we were in the black because there was something in the account. But in reality, half of that money wasn’t ours. — Oleksandr Stupakivskyi, entrepreneur

Even an experienced entrepreneur can end up in a situation where the money in the account isn’t enough to cover taxes or pay salaries. You need to clearly plan what each amount is for — so you don’t discover that the same funds are expected to cover different needs.

Why the account balance is not an indicator of financial health

Oleksandr went through this firsthand. Only after implementing Finmap did he see the full picture: actual balances, upcoming expenses, who was delaying payments, and — most importantly — how much of the money in the account actually belonged to the business.

Here’s what you DON’T see without financial management:‍

1. The total accounts receivable — who owes you and how much.
2. Future mandatory expenses — taxes, rent, salaries.
3. Reserved payouts — amounts already promised but not yet debited.
4. Real cash flow — how much money is actually free to use right now.

How to Tell the Difference Between an Account "Plus" and Real Profit

What Oleksandr Did — and What You Can Do Too:

1. Moved from “gut feeling” to numbers — implemented daily monitoring of actual and planned balances.
2. Tracks overdue payments — so accounts receivable don’t pile up.
3. Started setting aside reserves for taxes and mandatory expenses as soon as money comes in.
4. Analyzes cash flow and project profitability weekly — instead of just looking at the bank account.

‍Financial management finally helped me see how much of ‘my’ money is actually mine. And that transparency changed not just the numbers, but also the way I manage the company. — Oleksandr Stupakivskyi, entrepreneur

Having money is no guarantee of profitability. Profit is what remains after all obligations are covered. And if you’re still making financial decisions based on “gut feeling” — it’s time to switch to numbers.

Insight 4. If You Don’t See the P&L — You’re Not Running the Business

Many entrepreneurs rely only on the account balance at the end of the month or the number of sales. But that doesn’t show business profitability at all. Without a clear understanding of what generates profit and what “eats up” resources, you can’t make effective management decisions.

We used to look only at the result — what was left in the account. Now we see what we actually earned and what we spent. — Oleksandr Stupakivskyi, entrepreneur

The key report that gives you this picture is the P&L (Profit and Loss), or income statement. It’s not a formality — it’s your main navigator in financial management.

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Before implementing financial management in Oleksandr’s company:

• There was no separation of expenses by direction and project.
• EdTech, logistics, and trading expenses were all counted together.
• No one knew which area was dragging the business down and which one was profitable.
• Decisions were made based on intuition, not data.

After implementing Finmap:

• A clear P&L report for each business line appeared.
• It became clear that trading was profitable, while EdTech was still only generating expenses.
• The team was able to reallocate resources, optimize spending and marketing.
• There was now an opportunity to scale what’s effective — instead of sustaining what’s unprofitable.

What a P&L Report Gives Your Business — In Simple Terms

The P&L showed me something I hadn’t seen before: we were spending resources on a direction that wasn’t generating income. And once that became obvious — the dilemma of where to go next disappeared. — Oleksandr Stupakivskyi, entrepreneur

How to Implement P&L in Your Business:

1. Create a financial system — separate income and expenses by direction.
2. Define key expense categories and break them down into subcategories.
3. Choose a convenient tool (Finmap, Google Sheets, ERP).
4. Analyze your P&L monthly — it’s your main tool as a business leader.

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As long as you don’t see the P&L, you’re not managing — you’re guessing. Once the numbers are clear, clarity, logic, and calm emerge in your financial decisions.

Insight 5. Finance Is Not About Reports. It’s About Strategy

Most entrepreneurs start with passion, a product, and the desire to change the world. Then — they hire people, invest in marketing, launch new directions without a clear answer to the question, “can we afford this?”

Before, we were just working. Now — we’re managing. Finance has become our coordinate system. — Oleksandr Stupakivskyi, entrepreneur

Finance isn’t about bookkeeping and end-of-month calculations. It’s about making management decisions that affect your business’s growth, profitability, and resilience.

What Strategic Questions Does Financial Management Help Answer

What Changed in Oleksandr’s Company After Implementing Systematic Financial Management:

• Weekly financial meetings were introduced — the whole team sees real numbers and takes part in decision-making.
• Development scenarios are created: realistic, optimistic, and pessimistic.
• It's now clear where spending doesn’t bring results — in marketing, EdTech, and certain projects.
• The company stays ahead of crises instead of reacting to them after the fact.

‍Before, decisions were made based on gut feeling — now, based on models. This saves not only money, but nerves as well. — Oleksandr Stupakivskyi, entrepreneur

Financial management isn’t just files for the accountant. It’s your strategic weapon that:

• unlocks new opportunities for scaling,
• reveals weak spots in the business model,
• allows you to build anti-crisis scenarios before something goes wrong.

If you want to grow — first understand where you stand. And that’s only possible through finance.

Insight 6. Don’t Ignore Financial Signals

I saw something wasn’t right. But I didn’t want to dive into the numbers. Now I regret it. — Oleksandr Stupakivskyi, entrepreneur

Every business goes through tough times. But financial problems don’t come out of nowhere. They build up gradually — and always give signals. Most entrepreneurs just ignore them.

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An entrepreneur keeps working at full speed, ignoring the first cracks — until it all collapses. And it’s financial management that allows you to spot the warning signs before it’s too late.

Typical Signals That a Business Is Losing Financial Stability

Finmap became an early warning system for Oleksandr’s team. Instead of gut feeling — daily analytics. Instead of hope — concrete numbers.

What changed after launching financial control:

• Gained understanding of actual cash flow — when the dips and peaks will occur.
• Became clear which clients were causing cash gaps.
• Alerts and reports were implemented: weekly analysis of receivables, expenses, and financial results.
• The team started responding to problems before they became critical.

The numbers started working for us. Now we’re not putting out fires — we’re managing the situation in advance. — Oleksandr Stupakivskyi, entrepreneur

Ignoring financial signals is like ignoring pain in the body. It doesn’t go away — it turns into a crisis.

Insight 7. A Financial Expert Is Not a “Luxury,” but a Strategic Asset That Saves Thousands

Many entrepreneurs postpone hiring a financial expert, thinking: “I’ll figure it out myself” or “It’s too expensive.” But in reality — delay costs much more. It’s the financial expert who helps uncover where the business is losing money every single day.

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After working with a financial expert from Finmap, Oleksandr doesn’t just keep records — he manages the business.

What a Financial Expert Does in a Modern Business — Not Excel, but Strategy

Outsourced CFO + Finmap = the ideal formula for effective financial management

How Oleksandr’s Work Changed After Bringing in a Financial Expert:

• A clear financial model was built for all business areas.
• Regular reports became available to both the owner and the team.
• Every decision is now based on numbers, not intuition.
• The business strategy is no longer chaos — it’s a calculated plan.

The financial expert gave me peace of mind. Now I know what’s happening with the money — and what to do next. — Oleksandr Stupakivskyi, entrepreneur

A financial expert isn’t just “about numbers.” It’s about control, clarity, and profitability. If you want to scale, optimize expenses, or enter a new market — having a financial expert on your team will shorten the path by months and save tens of thousands.

Finance Isn’t Scary. What’s Scary Is Not Understanding It

Oleksandr went through a cash gap, lost $175,000, experienced financial chaos — and came out stronger.

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Now, finance is his main management tool — not a terrifying unknown.

Bonus: Checklist “Where to Start with Financial Management”

1. Count all expenses and income for at least the past 3 months.
2. Look at balances with planned expenses in mind.
3. Create a P&L — Profit and Loss report.
4. Identify the least profitable direction.
5. Start financial management in Finmap.
6. If you don’t have time to do it yourself — bring in a financial expert.

Don’t wait for a cash gap to start managing your finances

Try Finmap for your business — and take control of your money today.

Frequently Asked Questions

1. What is a cash gap and why is it dangerous for business?
A cash gap is a situation where current business expenses exceed incoming cash flow. This results in not having enough money to cover salaries, payments to suppliers, and other operating costs. If not controlled, the business risks accumulating debt, losing partners, or even shutting down.

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2. Why shouldn’t you rely only on the bank account balance?
Money in the account isn’t always the company’s actual profit. Some of the funds may be reserved for taxes, salaries, or debts. That’s why it’s important to maintain financial management and regularly analyze financial reports.

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3. How can a partnership without a written agreement affect the business?
Lack of a clear contract leads to misunderstanding of roles, financial responsibilities, and conflict resolution mechanisms. This can result in financial losses, damaged relationships, and even legal disputes. A written agreement protects the business and helps avoid misunderstandings.

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4. Why is it important to maintain financial management and have a P&L report?
The Profit and Loss (P&L) report gives a clear picture of which areas of the business generate profit and which generate losses. It enables informed decisions about investments, cost optimization, and scaling — rather than relying solely on intuition or the bank balance.

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5. When should you bring a financial expert onto your team?
You should bring in a financial expert at the scaling stage or when launching new products. They help build a transparent financial model, forecast cash flow, control expenses, and improve business efficiency. Timely involvement of a financial expert helps avoid financial losses and chaos.

When your account balance is zero, your pocket holds $2, and you're staring down $120,000 in debt. All while your business still has sales, a team, and clients.

I was standing in the kitchen with $2 in my pocket, thinking: that’s it, there’s no way out. Three years later — I paid back every cent of my debt. If I had tracked the numbers earlier, none of this would’ve happened. — Ekaterina Vyshnevetska, entrepreneur, guest on the podcast “Wish I’d Known This Earlier”

Ekaterina Vyshnevetska — partner at Genius Space Teleport, co-owner of the international educational project Proryv, and an entrepreneur who missed the signs of a cash flow gap.

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The result: minus $120 000, creditors, panic, and a complete business reboot. She rebuilt everything from scratch — slowly and painfully.

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Today, Ekaterina shares the lessons that apply not just to project-based businesses, but to any entrepreneur who wants to avoid losing everything.

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This isn't a finance lecture. It's real stories, real mistakes, real numbers — and the exact steps that helped her:

• stay out of the debt trap,
• keep money under control, even without a financial background,
• organize the budget without messy Excel sheets,
• and finally stop living from one launch to the next.

Keep reading — it's honest, sometimes painful, but incredibly useful.

Lesson 1. You’re Not an ATM for Your Business — and Your Business Isn’t Your Wallet

The Problem: Mixing Personal and Business Finances = a Ticking Time Bomb

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You estimate profits “by feel” and celebrate every incoming payment — only to spend that money on personal expenses the next day. A month later, your accountant shows that you’re short $5 000 for salaries and ads — and you have no idea how that happened.

We were using this month’s revenue to pay off invoices from three months ago — because we kept everything in one pot: personal and business. It was a ticking time bomb. — Ekaterina Vyshnevetska, entrepreneur

Why It’s Dangerous for Your Business

• Distorted picture. You see $7 000 in the account and think it’s profit — but $6 000 is actually client prepayments that still need to be fulfilled.
• Working capital disappears. When you pull out money for personal use, your business is left without cash for inventory, services, or marketing.
• One delay = cash flow gap. Two late payments — and suddenly you can’t pay last month’s bills, because you didn’t have a reserve.

The solution: create a clear financial boundary between you and your business.

Results in just one month:

• A clear view of your company’s actual profit.
• Confident expense and investment planning — without the fear of “will we have enough for payroll?”
• Your personal finances no longer depend on how many clients paid today.
• Transparent financial reports — so investors and partners trust the numbers, not just your words.

Most importantly: if you mix personal and business money, a cash flow gap is only a matter of time.

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Set up a border now, and your business will breathe freely, and you will be free from panic.

Lesson 2. How You Lose 30% of Your Money Every Day Without Noticing

The Problem: Thousands of Small Transactions Quietly Draining Your Cash.

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You focus on big bills — rent, inventory, salaries — while minor expenses of $2 – $4 silently eat away your profits. Coffee, taxis, subscriptions, office supplies — all those “little things” add up to a big loss. By the end of the month, you’re looking at the numbers and wondering:

A thousand small transactions, each for $2 – $4, and suddenly there’s a 30% hole labeled ‘miscellaneous.’ That’s how money disappears — without a trace. — Ekaterina Vyshnevetska, entrepreneur

Why It’s Dangerous for Your Business

• Small expenses drain your focus and your budget. They seem harmless, but they quietly shrink your margin and make your business less profitable.
• Lack of clear control. Without weekly tracking, even tiny subscriptions or impulse buys accumulate — becoming a black hole in your budget.
• Worsened financial planning. When the “miscellaneous” category keeps growing, it’s nearly impossible to forecast expenses or profits.

The solution: a weekly 10-minute check-in to review and control small expenses.

Results in just one month:

• A real understanding of where your money is going — and where you can cut back.
• Higher profits, because you’re no longer losing money to invisible cash leaks.
• More accurate and predictable budgeting.
• Peace of mind for you as the owner — because everything is under control.

Remember: big money is made up of small money. If you don’t control the little things, they’ll become your biggest financial enemy.

Lesson 3. A +20% Buffer: Your Financial Safety Net That Can Save Your Business

Why Adding 20% Isn’t a Luxury — It’s Real Insurance for Your Business

I multiply any expense by 1.2. If there’s anything left — it goes into the reserve. If not — I was ready for it. — Ekaterina Vyshnevetska, entrepreneur

No one asks your permission when exchange rates spike or inflation surges. A marketing campaign might suddenly need more funding to actually perform. A client might request a refund even after payment — and you need to plan for that in advance.Without a buffer, even small surprises can turn into a cash flow crisis that hits your business hard.

How to Create a +20% Buffer Budget in 4 Simple Steps

Results in just one month:

• You’ll stop fearing unexpected costs — and start handling surprises calmly.
• You’ll build a real financial cushion — without stress or panic.
• Your business becomes more stable, and you become more confident in the future.

Even if you don’t spend the reserve — it gives you peace of mind.

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Think of it like life insurance — for your money. Don’t wait for a crisis to catch you off guard. Learn to plan with a buffer — and your business won’t collapse at the first unexpected hit.

Lesson 4. A Financial Cushion Is Your Bulletproof Vest in an Unstable World

Why a Financial Cushion Isn’t Just About Money — It’s About Business Survival

Our courses launch every three months. If one launch fails — without a cushion, the company won’t survive until the next one. — Ekaterina Vyshnevetska, entrepreneur

In project-based businesses, income is inconsistent: one month there’s a launch, the next — silence.

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Without savings, even a small delay or failed campaign can sink the company.

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No financial cushion means you’re forced to cover operating expenses with loans or debt — and that’s a fast track to collapse.

There’s a Simple Formula for Building Your Financial Cushion

The Result:

• You get a bulletproof vest that absorbs unexpected shocks and gives you time to recover.
• You gain confidence knowing that even if something goes wrong, your business won’t go under.
• This cushion is your life raft — it helps you stay afloat until the next successful launch.

This pillow is like a lifeline that helps you survive until the next successful launch. — Ekaterina Vyshnevetska, entrepreneur

Lesson 5. A Cash Flow Gap Is Your Most Painful — but Most Valuable — Teacher

$120,000 in debt and zero in the account. It hurt — but that’s when I learned to truly respect the numbers. — Ekaterina Vyshnevetska, entrepreneur

Three Signs a Crisis Is Already at Your Door:

• You’re paying off old bills with new sales — like using a credit card to cover other debts.
• Client prepayments are spent on current expenses instead of business growth.
• Payroll dates keep getting pushed, and accounts receivable keep growing.

If any of this sounds familiar — it’s time to act.

The “Stop-Debt” Algorithm: How to Keep Your Business Alive in a Crisis

The Result: The crisis becomes a lesson — not the end of your business.

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A clear action plan gives you strength and motivation to move forward while keeping your team and reputation intact.

Debt isn’t a death sentence — if you stop in time and take control of the situation. — Ekaterina Vyshnevetska, entrepreneur

Lesson 6. Future Costs — Not Past Prices — Ignoring This Difference Pulls Your Business into the Red

A product I bought for $1,000 two months ago now costs $1,100.If I leave the old price in the budget — I’m guaranteed to lose money. — Ekaterina Vyshnevetska, entrepreneur

Why You Need to Think in Future Prices, Not Past Ones

Prices are constantly rising — due to inflation, logistics, or raw material costs.

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If you don’t update your cost estimates in your financial models, your budget becomes inaccurate and unprofitable. It’s like driving a car with a fuel gauge that shows yesterday’s fuel level.

How to Avoid This Trap

The Result: You stop losing money due to outdated numbers. Your business stays aligned with the market and remains financially stable.

A financial model is a living document — you need to keep it in shape. — Ekaterina Vyshnevetska, entrepreneur

Lesson 7. A Balance Sheet Isn’t Just About Expenses — It’s a Strategic Transformation of Your Money

Why Understanding Balance Matters

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Buying equipment isn’t just spending — it’s investing in an asset.
An asset can be sold, rented out, or used to scale the business.

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Without understanding your balance sheet, you can’t make smart decisions — whether it’s better to buy or rent, spend or invest.

How to See Your Balance Sheet in a New Light

The result: You turn your budget from a list of expenses into a growth tool.

Lesson 8. Visualization and Delegation — Financial Control at a Single Click

I get lost in spreadsheets. In Finmap, I opened the dashboard — found the error in five minutes and fixed it. — Ekaterina Vyshnevetska, entrepreneur

Why Founders Need Instant Financial Visibility

Even if you have a CFO, you must be able to see the real picture at any time. Without that, you risk staying in the dark and missing critical issues.

How to Combine Delegation with Control

The result: You control your finances without Excel or complicated reports.

Visualization is financial radar — it keeps you one step ahead. — Ekaterina Vyshnevetska, entrepreneur

Instead of a Conclusion: Take the First Step Today

1. Open a separate bank account for your business.
2. Set up bank sync in Finmap — it takes 3 minutes.
3. Set aside the first 3% of your profit into a financial cushion.
4. Review the budget for your next project and add a 20% buffer.
5. Check your minor expenses and reduce the “miscellaneous” category to 5% or less.

Controlling the numbers is an investment in my peace and freedom. $25 a month vs. $250,000 in potential losses — the choice is obvious. — Ekaterina Vyshnevetska, entrepreneur

Ready to turn your business from chaos to control?‍

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Leave a request — our experts will show you exactly what’s happening with your money, for free.

Frequently Asked Questions

1. How do I separate personal and business finances if I’m just starting out?
Start by opening a separate business bank account and setting a fixed “owner’s salary.” This helps prevent mixing personal and business funds from day one.

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2. Why is it so important to track even small expenses?
Seemingly insignificant payments — coffee, subscriptions, taxis — can add up to serious amounts and eat up to 30% of your budget, harming profits. Regular review and categorization of expenses help maintain control and avoid surprise cash flow gaps.

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3. Why add a 20% buffer to the budget? Isn’t that overspending?
The buffer acts as insurance for your business against unforeseen events — currency fluctuations, extra marketing costs, client refunds. It helps avoid crises and keeps your business stable.

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4. How much should I save for a financial cushion, and why is it necessary?
Ideally, set aside 3–10% of your net profit monthly until you’ve built a reserve that covers at least three months of regular expenses. These funds must remain untouched — even for debt repayment.

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5. What if I’m already facing a cash flow gap and debt?
Be transparent with creditors and ask for a 3-month payment delay. Focus on boosting sales and marketing, and pay down debts gradually — track payments in a spreadsheet for control and motivation.

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6. How do I account for rising costs in my budget?
Include a forecasted cost increase (e.g., +5–10%) in your financial model, and compare it monthly with actual expenses — this helps prevent losses.

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7. Why is a balance sheet more than just tracking expenses — it’s about transforming assets?
Buying equipment is an investment in an asset you can rent out or sell. It opens new opportunities for the business instead of just draining funds.

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8. How can a business owner stay financially aware even with a CFO?
Even with a CFO, you should have fast access to key financial metrics via simple tools (like Finmap) to make informed decisions and stay in control.

As part of a new investment round, Finmap has secured a strategic partnership with the UK venture capital fund 1991 Ventures. The company raised funding within a deal totaling over $1 million. The fund specializes in early-stage investments with a focus on supporting businesses from Eastern Europe.

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1991 Ventures helps innovative companies scale internationally, offering not only capital but also strategic support in market expansion and product development.

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An investment from such a reputable partner is a powerful signal of trust from the market — reinforcing Finmap’s position as a leading financial management platform for small and medium-sized businesses. It validates the product, the team, and the strategic vision as meeting the highest global standards.

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Why Did 1991 Ventures Invest in Finmap?

Finmap is a user-friendly online platform for financial management that has already helped over 4,000 companies bring clarity to their finances.

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Entrepreneurs from more than 100 industries choose Finmap not only for its intuitive interface and powerful features but also for its high level of data security. The platform complies with international safety standards used by leading global companies and banks. All data is transmitted and stored on secure servers in Europe using 256-bit encryption — one of the most robust encryption methods in the world.

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Finmap is a leader among financial management tools for small and medium-sized businesses in Ukraine.

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The platform integrates with over 2,800 banks and financial services worldwide, supports more than 35 fiat currencies and over 80 cryptocurrencies. In addition, Finmap’s team of experienced financial experts is ready to assist with financial management, mentorship, and the development of custom financial models for businesses.

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70% of businesses fail due to financial issues. Not because of the idea, not because of the lack of demand — but due to lack of control over their finances.

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That’s exactly the problem Finmap solves.

We invest when we see both strong product potential and a team with the strategic vision and operational discipline to scale effectively. Finmap is a prime example — a technology startup tackling a clear, large-scale business challenge that demonstrates not only product-market fit, but also the traction and maturity needed for global growth. — a representative of 1991 Ventures on why they invested in Finmap

The investors also highlighted:

• Consistent traction across Ukraine, the European Union, and Latin America — clear proof of Finmap’s ability to operate globally.
• ‍A strong team that continuously improves the product.
• A strategic vision — Finmap is more than just a financial management tool. It’s a platform that brings clarity to business finances and supports well-informed decision-making.
  
• A systematic approach to entering new markets and rolling out new features.
  

This is more than just a deal — it’s a strategic partnership that creates new growth opportunities for Finmap and its users.

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We believe that Finmap is already synonymous with effective financial management for entrepreneurs who value growth with confidence and control.

What Does This Mean for Finmap Users?

The investment from 1991 Ventures opens up new opportunities that will directly enhance the experience of our users:

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1. AI-Driven Analytics: More Confidence in the Future

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We're introducing AI-powered analytical tools that will:

• Forecast cash flow based on historical data and seasonality.
  
• Identify potential cash gaps before they become a problem.
  
• Highlight which expenses to optimize and which projects drive the most profit.
  

What this means for users: Faster strategic decisions — powered by real-time business data and automated insights.

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2. Faster Market Expansion with Deep Localization

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We’re expanding our localization efforts to include:

• Support for local currencies, banks, and payment systems (e.g. Brazil, Turkey, Portugal, Asia).
  
• Region-specific pricing plans.
  
• Local payment methods and language options.
  

What this means for users: Finmap adapts to any market — so you can scale without barriers.

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3. Enhanced Mobile Experience

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We’re improving the Finmap mobile app with:

• A redesigned UX for faster onboarding and more intuitive navigation.
  
• Improved app stability in regions with technical limitations (e.g. Latin America).
  
• Timely notifications about key events and updates.
  

What this means for users: Effortless financial control — anytime, anywhere.

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4. More Powerful Analytics and Reporting

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We’re upgrading reports with:

• Advanced filters, category breakdowns, and account grouping.
  
• The ability to set base currencies for multi-currency businesses.
  

What this means for users: A deeper understanding of your business finances, even with complex structures.

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5. Integrations with Banks, Payment Systems, and CRMs

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We’re enabling tighter integration with:

• Banks for faster transaction tracking and reduced manual input.
  
• Crypto wallets.
  
• CRMs — to connect financial and customer data in one place.
  

What this means for users: Less manual work, fewer errors — and more time to grow your business.

In Summary, Finmap Users Will Get:

• Global reach — local banks, languages, and currencies.
  
• Routine automation — financial tracking that runs on autopilot.
  
• Powerful reporting — get clear answers to your financial questions.
  
• Reliable mobile app — control your finances on the go.

AI analytics, automation, localization, flexible reporting, and integrations — this isn’t just a set of features. It’s a complete system for financial management that replaces chaos with clarity and control.

• You’ll see exactly where your business is losing money.
• You’ll predict cash gaps before they happen.
• You’ll know which costs fuel growth — and which ones drain resources.
• You’ll get a full financial picture — all in one place, with no noise.

Finmap is the only financial management tool your business needs.

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Forget the chaos and uncertainty — Finmap gives you complete clarity and control, in any currency, on any market.

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Fast decisions, accurate forecasts, automated routine — so you can focus on growth, not paperwork.

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This isn’t just financial tracking.
It’s your most powerful tool for scaling and profitability.

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We’re working hard to make Finmap the global financial standard for entrepreneurs.

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Support from a strategic partner like 1991 Ventures is proof that our product and team are ready for the next big leap.

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Ready to take control of your finances?  Book a free consultation with our expert and get demo access to see firsthand how Finmap can work for your business.

Google has always supported Ukrainian business, and this year it took another step in this direction. In spring, the company launched the global programme "Google for Startups Ukraine Support Fund", which provides financial assistance to Ukrainian startups.

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In the second round, the fund totalled $10,000,000 in equity funding. In addition to financial support, Finmap and 23 other startups and tech companies receive mentorship and product support from leading experts of a global IT giant.

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Finmap is a easy-to-use cash flow management tool that has helped more than 3,500 companies from more than 100 different industries to get their finances in order.

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Entrepreneurs from 54 countries choose Finmap not only because of its convenient and intuitive functionality, but also because of the high level of data protection that meets the security standards of international companies and banks. The information is transmitted and stored on secure servers in Europe and encrypted using the highest 256-bit encryption standard.

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Finmap is a leader in Ukraine in the niche of financial management for small and medium-sized business owners.

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Finmap has connections to more than 2800 banks and financial services worldwide, support for 35+ currencies and 80+ cryptocurrencies. It also has a team of professional financiers who can help with financial management, mentoring, and the development of individual financial models for businesses.

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Google's Support for Finmap: Recognised on a Global Scale

The competition for the programme was intense with many selection criteria.

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Google chose Finmap because of its product innovation and ability to solve real business problems. This selection confirms the company's potential for growth and international scaling.

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Receiving funding and mentorship is not only a confirmation of the company's right course, but also new opportunities for international development, job creation and the use of technology to solve unique challenges, collaborate and attract customers.

New Opportunities for Finmap with the Support of Google: What Does It Mean for You as an Entrepreneur?

The funds received from Google will be used to improve Finmap tools. The main focus is on the integration of new features to automate financial management and analytics.

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This will not only expand Finmap's capabilities and improve the user experience, but will also provide a real opportunity for existing users to get more accurate and detailed data needed to make important business decisions. For new customers, this will mean easier access to effective tools that simplify financial management and help their companies grow.

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New AI assistant Functions to Optimise Financial Management

Google gave preference to those who actively integrate AI into their products. One of Finmap's key advantages in the selection process was the use of an AI assistant that helps entrepreneurs quickly receive recommendations and advice and easily optimise financial management.

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Google's support and experience will significantly expand the functionality and capabilities of the AI assistant, adding the ability to conduct in-depth analysis, analyse data, and provide valuable recommendations for business development. Users of the service will be able to receive insights on how to improve business processes based on their real data.

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The new features will also reduce routine operations, find cost bottlenecks, and help avoid financial crises. Finmap users can now focus on scaling their business, and Finmap will help them to organise their money.

Business-Changing Financial Solutions: Supporting Local Businesses and Global Ambitions

The mission of Finmap is to help small and medium-sized businesses systematize financial processes and improve resource management. The founders of Finmap initiated a project to support Ukrainian entrepreneurs, assisting them in implementing effective financial management. This contributes to financial stability and business growth, even during challenging times.

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The company's funders and financial experts have repeatedly participated as speakers and mentors in economic and social events: Defence builder, Vector of Reconstruction, Ukrainian Humanitarian Front, Star for life and others.

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Support from Google opens the door to international markets. Finmap has an ambitious goal to become a key tool for financial management of small and medium-sized companies around the world. And you, as a Finmap user, have the opportunity to be at the forefront of this expansion.

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The service helps entrepreneurs better understand their finances and make informed decisions. This not only facilitates the work of individual companies, but also actively contributes to the development of the Ukrainian economy.

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The real-life cases of Finmap users are impressive:

• found $9,000 of avoidable expenses;
• have never fallen into a cash gap thanks to Finmap management;
• increased net profit by 10% per month;
• created a successful financial model for entering the international market;
• reduced the time spent working with finances by 50 times;
• for the first time in three years, we made a profit instead of constant losses and ‘falling into the red’.

These achievements were made possible by the implementation of the Finmap and with the help of a team of professional financiers who provide advice, financial management services, mentoring and the development of individual financial models for businesses.

With Finmap, you get not just tools for financial management, but a reliable partner on the way to development and scaling.

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If you want to:

• take the first step towards sustainable business development and transparent financial management,
• get advice on financial planning and business scaling.

Book a free expert diagnostic consultation and start turning your business goals into reality today!

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Finmap, a cash flow management service for businesses, closed a new round of investments amounting to $1.2 million. Presto Ventures, Sturgeon Capital, SID Venture Partners, startup incubator Startup Wise Guys, as well as the investment companies BRISE Capital and TBI Bank CEO Peter Baron, all took part in the round.

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The investment will be used to expand the team of developers, increase marketing, and extend service into Central and South Europe. Finmap will continue to develop and adapt to meet the needs of users in these markets. Further integration with new banks and CRM systems, as well as adding an invoicing option, are also planned for 2022.

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Finmap is a simple and convenient cash flow management service for modern businesses, with accessible functionality and a user-friendly interface. It synchronizes with user accounts via API, allows business owners to set up a payment schedule, makes it possible to delegate the data entry process, and provides in-depth, easy-to-understand analysis of all financial transactions.

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The service ensures anonymity and security of data storage, as it does not require clients to provide official data about the company (for example, USREOU code). The data is stored on cloud servers using the banking standard of data encryption. In addition, the transmission channel from the browser to the server is encrypted using SSL protocol.

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Subscriptions for small and medium-sized businesses cost from $25 per month.

Cash flow management is an important part of the business for entrepreneurs from all over the world. Understanding the amount of money that is generated and consumed is the only real way that you can see and understand the true state of your company in order to make critical growth and development decisions. Technological approaches in money management will help to effectively control and develop your company. Currently, we are working with companies from 12 countries, with plans to expand into Poland, the Czech Republic, Spain, and Turkey. — Finmap founders Alexander Solovei and Ivan Kaunov

Until they discovered Finmap Presto Ventures, one of the investors, assumed there was a lack of innovative solutions for cash flow management services.

In 2021, Finmap showed rapid growth in business performance, completely relaunched the product and expanded the team. Such results aroused investor interest. In this round, the company was further strengthened by core innovation capital from the Czech Republic and the UK. Finmap has new markets ahead, many growth opportunities, more to offer their clients, employees, and investors, and therefore an even more exciting adventure. We at BRISE are happy to support the team and be by their side on this journey. — Alexander Yatsenko, Managing Partner at BRISE Capital

Sturgeon Capital is pleased to be part of Finmap’s funding round. The product is elegant in its simplicity, powerful in its functionality, and clearly solves a pressing business problem. We believe that with a strong team and experienced investors, Finmap will continue to strengthen its position in existing markets, while also reaching out to new markets to drive growth. We look forward to being part of that. — Robin Butler, Partner at Sturgeon Capital

Startup Wise Guys made their first investment in the project in early 2021, when the Finmap team joined their acceleration program and continued their support after the release.

While the team initially focused on scaling in Ukraine with very promising results, during our acceleration program they invested their time to re-launch the product, taking many first-user ideas into account in preparation for an international launch. This launch in several Eastern European countries looks very promising. And the way Ivan and Alexander coordinated their teams in scaling (and doing it all completely remotely) is impressive and a strong indication of their managerial potential. — Cristobal Alonso, Global CEO at Startup Wise Guys

The Finmap project has a good combination of funders with expertise in IT solutions and business aspects. A strong team has created a quality product that provides effective solutions to common problems of the largest SMB segment of the market. Financial accounting for small and medium-sized entrepreneurs becomes easier, which opens new opportunities for their development, while the educational component of the service allows them to influence the general level of financial literacy. Finmap became one of the first portfolio investments of SID Fund I, as it not only corresponds to our investment focus, but also has a predictable potential for scaling, in particular, outside of Ukraine. — Dmitry Vartanian, Managing General Partner at SID Venture Partners

Finmap integrates with 4000+ European banks and PayPal, Wise, Revolut, ApiXDrive, Fondy services, as well as Western Bid data import.

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Integration with PrivatBank, monobank, PUMB, Alfa-Bank and Raiffeisen Bank Aval statements import is available for Ukrainian users. It is also possible to add accounts in more than 70 cryptocurrencies (BTC, ETH, LTC, ADA, BNB etc).

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In addition to the desktop version and Telegram bot, mobile apps for iOS and Android are already available.

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About the service:

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Finmap was founded in 2019 by serial entrepreneurs Alexander Solovei and Ivan Kaunov. At the beginning of 2021, Dmytro Dubilet, who is also the co-founder of the fastest-growing neobank in Europe monobank, joined the team. In the same year, the company attracted a round of investments from Ukrainian and European venture capitalists.

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Over the past year, the Finmap team grew eight-fold, from 7 to 58 specialists, all working entirely remotely.