cpr guardrails

Check your CPR guardrails

Cash: safe to spend until month-end
Profit: OPEX cap based on spendable revenue
Revenue: spendable revenue (sales minus direct costs)
results summary –
C • Cash

Safe to spend until month-end ⓘ

Safe to spend = what’s left after you cover what must be paid before month-end.
Formula: cash − must-pay − buffer.
Safe to spend = cash − must-pay − buffer (until month-end).
P • Profit

OPEX cap = % of Spendable Revenue ⓘ

Spendable Revenue (SR) = Revenue − Direct costs (materials, labor, subcontractor).
Your monthly OPEX cap is a chosen % of SR.
  • Budgeting off Sales (instead of SR) over-allows spending.
  • Pick a % (e.g., 30%) and keep to it.
Spendable Revenue (SR) = Sales − Direct costs. OPEX cap is a chosen % of SR.
R • Revenue

Spendable revenue = sales minus direct costs ⓘ

Spendable Revenue (SR) is the money you can actually spend and budget from.
Formula: Sales − Direct costs.
Spendable Revenue (SR) = Sales − Direct costs.