DON’T DROWN IN DEBT: Your Working Capital & Cash Conversion Playbook

Prompt PAck

Prompt

The Final Prompt (Read/Copy Manually):

  
 ACT as a seasoned Treasury Management Expert and Working Capital Optimization Specialist with a focus on accelerating the Cash Conversion Cycle (CCC). Your mission is to design a strategic, actionable Working Capital Framework tailored to the Founder's current financial profile.

Follow these strict instructions for structure and content:

1.  **Founder Context & Goal (WC Profile):** The Founder needs to free up working capital and reduce financing costs based on the following metrics:
    * AR DAYS: [NUMBER]
    * INVENTORY DAYS: [NUMBER]
    * AP DAYS: [NUMBER]
    * CURRENT CCC: [DAYS]
    * CREDIT LINE USED: $[AMOUNT]
    * GROWTH RATE: [X]%
2.  **Part 1: The CCC Decomposition:** Provide a concise analysis of the Founder's **[DAYS] CCC**, identifying the one metric (AR, Inventory, or AP days) that offers the greatest, fastest potential for reduction.
3.  **Part 2: Optimization Strategies (High-Impact):** For the highest-impact metric identified in Part 1, recommend 3 specific, modern optimization strategies. *Example:* If AR is the target, propose a **Dynamic Discounting** program framework. If AP is the target, propose a **Supply Chain Finance** implementation model.
4.  **Part 3: Financing Alternatives Guide:** Provide a brief analysis of the current $[AMOUNT] credit line usage. If the CCC is reduced by 15 days, estimate the potential reduction in the credit line needed, and propose 2 alternative, non-dilutive financing sources.
5.  **Format:** Deliver the output as a professional "Working Capital Playbook" using clear Markdown headings, tables for optimization comparisons, and a high-level implementation timeline.

Your Actionable Playbook

Why This Works

This prompt ensures the AI acts as a sophisticated financial consultant, providing data-driven and modern solutions.

Expert Role & Focus: The ACT as a Treasury Management Expert role ensures the focus is on complex topics like Supply Chain Finance and Dynamic Discounting, which are standard for corporate treasury but high-value knowledge for an entrepreneur.
The CCC Decomposition Mandate: Requiring the AI to perform the “CCC Decomposition” and identify the single greatest reduction potential (Part 1) forces a strategic, prioritized response, rather than a generic list of tips for all three metrics.
Modern Strategies: Explicitly asking for frameworks like Dynamic Discounting and Supply Chain Finance ensures the advice is current and focuses on sophisticated, high-leverage solutions for working capital management.

Input Variables Explained (Your Working Capital Profile)

Variable	Explanation for the Entrepreneur	Why the AI Needs It
`[NUMBER]` (AR Days)	Average time (in days) it takes to collect payments (Accounts Receivable).	Determines potential for cash acceleration through collections and credit policy.
`[NUMBER]` (Inventory Days)	Average time (in days) inventory sits before being sold.	Determines efficiency of operations and inventory management tactics needed.
`[NUMBER]` (AP Days)	Average time (in days) it takes to pay suppliers (Accounts Payable).	Determines optimization potential for payment terms and financing alternatives.
`[DAYS]` (Cash Conversion Cycle)	The total number of days cash is tied up in the business (AR + Inventory – AP).	The core metric the AI is focused on reducing; sets the target for the optimization plan.
`[AMOUNT]` (Credit Line Used)	The amount currently drawn on your line of credit.	Helps the AI calculate the monetary savings if the CCC is reduced (less reliance on financing).
`[X]`% (Growth Rate)	Your average monthly or annual revenue growth percentage.	High growth often strains working capital; the AI factors this risk into its recommendations.

How to Customize

Entrepreneurs can modify these levers to adapt the Working Capital playbook to different scenarios, risks, or strategic goals:

Change the Role and Focus: Change the role to ACT as a Supply Chain Risk Mitigation Specialist. The playbook will then focus on Inventory Days and recommend strategies like dual-sourcing and regional stock optimization to protect the CCC against supply chain disruptions.

Focus on Specific Risk: If the company is facing an immediate liquidity crunch, add an instruction: Assume a supplier just cut payment terms from Net 60 to Net 30. Structure the optimization plan to find 20 days of cash acceleration within the next 45 days.

Adjust the Financing Mandate: Change the instruction in Part 3 to focus the advice on a specific alternative financing source: Provide a detailed framework for implementing a factoring program for 50% of the current Accounts Receivable, analyzing the cost vs. the cash acceleration benefit.

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