Understand working capital before accepting a large order
A large order may require cash for materials, staff and delivery long before the customer pays. Assess the timing and risk before treating the order as an uncomplicated growth opportunity.
Map the order's cash cycle
List upfront purchases, staged delivery costs, customer advances and expected receipts. Test a delayed-payment scenario and check whether other commitments remain covered. Discuss commercially appropriate milestones and terms before accepting work, with professional advice where contractual or financing questions arise.
A worked example
A manufacturer receives a bulk order with payment after final delivery. A cash timeline reveals that purchasing all materials at once would strain existing operations, prompting a staged supply discussion.
Illustrative scenario; this is not a claim about an actual Conxn client or guaranteed results.
Your action checklist
- Map all cash dates
- Test a collection delay
- Agree feasible milestones before commitment
Is a profitable order always worth accepting?
No. Cash capacity, concentration, quality and contractual exposure also matter. Evaluate the complete commitment rather than margin alone.
AI-assisted editorial guide for practical business planning. Adapt the framework to your context and seek qualified advice for material financial, legal, employment or contractual decisions.