Cashflow: Difference between revisions
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'''Cashflow''' is key to a [[self-funding]] system | '''Cashflow''' is key to the [[revenue model]], especially of a [[self-funding]] system that will require revenue to balance every expenditure, and will not rely on [[donation]] or heroic volunteers to bail it out of problems: | ||
To qualify as self-funding, a system must take in [[financial capital]] (not quite the same thing as [[money]]) before it must pay it out. A [[nonprofit]] relies on donations and a [[line of credit]] based on the assumption that donations are coming, to meet its cashflow requirements usually. | To qualify as self-funding, a system must take in [[financial capital]] (not quite the same thing as [[money]]) before it must pay it out. A [[nonprofit]] relies on donations and a [[line of credit]] based on the assumption that donations are coming, to meet its cashflow requirements usually. | ||