Table of Contents
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22 min
23.08.2025
$0 in the bank and $175,000 in debt: 7 insights to avoid bankruptcy
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Oleksandr Solovei
CEO & Co-founder Finmap
When your business operates in three countries, completes 1,500 shipments a month, has a team of 70 people, and is launching an AI-powered EdTech product at the same time, it looks like success — like everything is under control. Until the account hits zero, the company falls into a cash gap, and you have no idea where the money went.
Our revenue was good. We had active sales and new contracts. But one day I opened the account and saw there was no money. Even though the business was running at full speed. — Oleksandr Stupakivskyi, entrepreneur, guest on the “Wish I’d Known This Earlier” podcast
Oleksandr is the co-founder of a logistics company operating in Ukraine, the US, and Europe. His business was growing fast: thousands of shipments a month, a growing team, expansion into new markets.
But alongside that growth came a cash gap, a $175,000 loss from a failed partnership, and the constant stress of not understanding the company’s finances.
In this article, Oleksandr shares the insights and lessons he learned through firsthand experience:
- how a single cash gap can put a large-scale business on pause,
- why the feeling that “everything is fine” means nothing without numbers,
- how financial management with Finmap helped systematize operations and reveal the real state of the business,
- and why partnerships are a high-risk zone for financial turbulence.
This is not a finance textbook. It’s an honest story about mistakes, failures, and real tools that help you keep control of your business when everything seems to be going well.
Keep reading if you’re ready to look at your business without illusions.
Insight 1. Even a large-scale business can run in the red
More revenue ≠ more profit. That realization is painful. It’s exactly why Oleksandr faced a cash gap during a period of rapid growth.
We were growing very quickly. But that’s exactly why we started sinking. We simply couldn’t understand what was really happening with the money. — Oleksandr Stupakivskyi, entrepreneur
What happened:
More shipments meant more spending on advances, fuel, salaries, and administrative expenses. But customer payments often arrived late. That created a financial hole.
A cash gap is one of the most dangerous financial traps for small and medium-sized businesses. It means your current expenses are not being covered by incoming cash. And if you don’t control it, you risk taking on debt, losing partners, and even shutting down the business.
Why should you monitor the risk of a cash gap every day?
Many entrepreneurs manage their finances “through the rearview mirror” — looking at reports, balances, and profit at the end of the month or quarter. But financial control needs to be preventive, not reactive.
- Real-time financial management helps you predict when cash will run short and make urgent decisions.
- Cash flow planning helps you prepare for seasonality or payment delays.
- Financial reserves are your insurance against cash gaps and unexpected expenses.
When we faced our first cash gap, it was a shock. We couldn’t understand how we could have no money with that level of sales. Now we know: without systematic financial management, a business is doomed to chaos.
— Oleksandr Stupakivskyi, entrepreneur
How to avoid a cash gap — key actions
Read more about how to avoid cash gaps and keep your business from going under.
Before Finmap, Oleksandr’s company:
- didn’t have a clear view of the balance between income and expenses,
- didn’t track accounts receivable,
- didn’t forecast cash flow.
After they started managing finances properly:
- they gained a clear view of costs and profit in each business area,
- it became obvious which projects were draining cash and which were profitable,
- financial planning made it possible to anticipate a cash gap and prepare a reserve.
Remember: a cash gap is not just a temporary problem. It’s a sign that your business’s financial strategy needs to change. Ignore it, and you could lose everything you’ve built.
Insight 2. A partnership without a contract is an expensive mistake
A successful business in one country often creates the illusion that everything will work the same way in another. But when it comes to partnerships, intuition is a terrible advisor unless it’s backed by clear agreements on paper.
I had a positive experience with a partner in Ukraine, so I thought it would be the same in the US. But it cost me $175,000 and a lost year. — Oleksandr Stupakivskyi, entrepreneur
When launching the business in the US, Oleksandr chose a partnership model without a clear contract, defined roles, or financial guarantees. The result: misaligned expectations, a damaged relationship, lost time, reputational risks, and major financial losses.
Why is a partnership without a contract risky?
Many entrepreneurs neglect legal formalities at the start: “We’re friends,” “we’ll figure it out as we go,” “we don’t want to complicate things with lawyers.” But a business without a clear contract:
- Doesn’t define who is responsible for key areas such as finance, team, and marketing.
- Has no conflict-resolution mechanism.
- Doesn’t document contributions or ownership shares.
- Doesn’t clarify what happens if one partner leaves.
All of this creates a foundation for financial losses, legal disputes, and toxic relationships.
What should be included in a partnership agreement?
How to protect yourself and your business in a partnership
- Document everything from the start. Don’t avoid difficult conversations. An agreement with no written confirmation is just an illusion.
- Bring in lawyers. Even if it’s a garage startup, having a written agreement means peace of mind.
- Agree on exit mechanisms. Because every partnership either works — or ends.
- Keep separate financial records for each partnership business. That way you can see the real numbers and react in time.
After that failed experience, I don’t take a single step without a clear contract. Even if everything starts with a handshake, it ends on paper. — Oleksandr Stupakivskyi, entrepreneur
A partnership is not just a shared dream. It’s a legal, financial, and reputational responsibility. And if you don’t agree on everything from the beginning, you risk losing far more than money.
Insight 3. Money in the account ≠ profit
Many entrepreneurs fall into the same trap: they see money in the account and assume the company is profitable. But available cash does not mean profit. Often, that money belongs to someone else, is reserved for obligations, or simply creates an illusion of financial stability.
I thought we were in the black because there was money in the account. But in reality, half of that money belonged to other people. — Oleksandr Stupakivskyi, entrepreneur
Even an experienced entrepreneur can end up in a situation where the money in the account won’t cover taxes or salaries. You need to clearly plan which amounts are tied to which obligations, so you don’t discover later that the same money has been mentally allocated to several different needs.
Why your account balance is not a sign of financial health
Oleksandr learned this the hard way. Only after implementing Finmap did he see the real picture: actual balances, upcoming expenses, who was late with payments, and most importantly — how much of the money in the account actually belonged to the business.
Here’s what you CAN’T see without professional financial management:
- Accounts receivable — who still owes you money and how much.
- Upcoming mandatory expenses — taxes, rent, salaries.
- Reserves for payments — commitments already made but not yet paid.
- Real cash flow — how much money is truly available right now.
How to tell the difference between a “positive balance” and real profit
What Oleksandr did — and what you can do too:
- Moved from gut feeling to numbers — implemented daily control of actual and planned balances.
- Tracks overdue payments so receivables don’t hang unresolved.
- Started setting aside money for taxes and mandatory expenses as soon as cash comes in.
- Reviews cash flow and project profitability every week — not just the bank balance.
Financial control finally helped me see how much of “my” money was actually mine. And that transparency changed not only the numbers, but also the way we manage the company. — Oleksandr Stupakivskyi, entrepreneur
Cash in the account is not a guarantee of profitability. Profit is what remains after all obligations are covered. And if you still make financial decisions “by feel,” it’s time to move to numbers.
Insight 4. If you don’t see your P&L, you’re not managing the business
Many entrepreneurs focus only on the month-end balance or the number of sales. But that says nothing about the company’s profitability. Without a clear understanding of what generates profit and what “eats up” resources, you can’t make effective management decisions.
Before, we only looked at 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 visibility is the P&L (Profit and Loss), or profit and loss statement. It’s not a formality — it’s your main guide for financial management.
Before financial management was implemented in Oleksandr’s company:
- Costs were not separated by business area or project.
- Expenses for EdTech, logistics, and trading were all lumped together.
- No one knew which area was dragging the business down and which one was generating profit.
- Decisions were made based on intuition, not data.
After implementing Finmap:
- They got a clear P&L report for each area.
- It became obvious that trading was profitable, while EdTech — for now — only generated costs.
- The team was able to reallocate resources and optimize expenses and marketing.
- They could scale what worked instead of funding what was losing money.
What a P&L report gives your business — in plain language:
The P&L showed me something I hadn’t seen before: we were spending resources on an area that wasn’t generating revenue. And once that became clear, there was no longer any dilemma about which direction to take. — Oleksandr Stupakivskyi, entrepreneur
How to implement P&L in your business:
- Set up a financial system — separate income and expenses by business area.
- Define the main expense categories and break them down into subcategories.
- Choose a convenient tool: Finmap, Google Sheets, or an ERP.
- Review your P&L every month — it’s your main management tool.
Until you see your P&L, you’re not managing — you’re guessing. Once the numbers are clear, your financial decisions become clearer, more logical, and less stressful.
Insight 5. Finance isn’t about reports. It’s about strategy
Most entrepreneurs start with passion, a product, and a desire to change the world. Then they hire people, invest in marketing, launch new areas… without clearly answering the question: “Can we actually afford this?”
Before, we were just working. Now, we’re managing. Finance has become our navigation system. — Oleksandr Stupakivskyi, entrepreneur
Finance is not about bookkeeping or month-end accounts.
It’s about management decisions — decisions that directly affect growth, profit, and business resilience.
Strategic questions financial management helps answer:
What changed in Oleksandr’s company after systematic financial management:
- Weekly finance meetings were introduced — the whole team sees the real numbers and takes part in decisions.
- Development scenarios are built: realistic, optimistic, and pessimistic.
- It’s clear where spending does not produce results — marketing, EdTech, specific projects.
- The company anticipates crises instead of reacting after the fact.
Before, decisions were made “by feel.” Now they’re based on models. That saves not only money, but nerves too. — Oleksandr Stupakivskyi, entrepreneur
Financial management is not an accountant’s archive. It’s your strategic weapon. It:
- opens up new scaling opportunities,
- reveals weak points in the business model,
- lets you build crisis scenarios before anything goes wrong.
Want to grow? First understand where you are. And that’s only possible through finance.
Insight 6. Don’t ignore financial warning signs
I could feel something was wrong. But I didn’t want to dig into the numbers. Today I regret that. — Oleksandr Stupakivskyi, entrepreneur
Every business goes through difficult periods. But financial problems don’t appear out of nowhere. They build up gradually — and they always send signals. The problem is that most entrepreneurs ignore them.
The business keeps running “on the edge,” without paying attention to the first cracks — until everything collapses. And it’s exactly financial management that helps identify early warnings before it’s too late.
Typical signs that a business is losing financial health
Finmap became Oleksandr’s team’s early-warning system. Instead of feelings — daily analysis. Instead of hope — concrete numbers.
What changed after they started financial control:
- They began to understand real cash flow — when drops and peaks would happen.
- They could see which clients were causing cash gaps.
- Alerts and reports were introduced: weekly analysis of receivables, expenses, and the financial result.
- The team started acting on problems before they became critical.
The numbers started working in our favor. Now we don’t put out fires — we stay in control ahead of time. — Oleksandr Stupakivskyi, entrepreneur
Ignoring financial signals is like ignoring pain in your body. It doesn’t disappear — it grows into a crisis.
Insight 7. A finance specialist is not a “luxury” — they’re a strategic asset that can save you thousands
Many entrepreneurs put off hiring a finance professional because they think, “I can handle it myself” or “It’s too expensive.” But in practice, waiting costs much more. A finance specialist helps you see where your business is losing money every single day.
After working with a Finmap finance specialist, Oleksandr doesn’t just track finances — he manages the business.
What a finance professional does in a modern business — it’s not Excel, it’s strategy
Outsourced CFO + Finmap = the ideal formula for effective management.
How Oleksandr’s work changed after hiring a finance professional:
- A clear financial model was built for all areas of the business.
- Regular reports appeared, visible both to the owner and the team.
- Every decision is now based on numbers, not intuition.
- The business strategy stopped being chaos and became a calculated plan.
The finance specialist gave me peace of mind. Now I know what’s happening with the money — and what to do next. — Oleksandr Stupakivskyi, entrepreneur
A finance professional is not just “about numbers.” They’re about control, clarity, and profitability.
If you want to scale, optimize expenses, or enter a new market, having a finance professional on your team can shorten the path by months and save you tens of thousands.
Finance isn’t scary. Not understanding it is
Oleksandr went through a cash gap, a $175,000 loss, and financial chaos — and came out stronger.
Today, finance is his main management tool, not an unknown and frightening zone.
Bonus: Checklist — where to start with financial management
- Add up all income and expenses for the last 3 months.
- Check your balances against planned expenses.
- Prepare a P&L — a profit and loss report.
- Identify the area with the biggest losses.
- Start managing your finances with Finmap.
- If you can’t handle it alone, bring in a finance professional.
Don’t wait for a cash gap to start taking control
Try Finmap in your business — and take control of your money today.
Frequently asked questions
1. What is a cash gap, and why is it dangerous for a business?
A cash gap happens when a company’s current expenses exceed the cash coming in. This leads to a shortage of money for salaries, suppliers, and other operating expenses. If left uncontrolled, the business risks building up debt, losing partners, and even shutting down.
2. Why shouldn’t you rely only on your bank account balance?
Money in the account is not necessarily company profit. Part of it may be reserved for taxes, salaries, or debt. That’s why it’s essential to keep management-level financial records and review financial reports regularly.
3. How can a partnership without a written contract affect a business?
The absence of a clear contract creates confusion around roles, financial responsibilities, and conflict resolution. This can lead to losses, damaged relationships, and even lawsuits. A contract protects the business and prevents misunderstandings.
4. Why is management accounting and a P&L report important?
A profit and loss report (P&L) clearly shows which areas of the business generate profit and which create losses. This makes it possible to make informed decisions about investments, cost reduction, and expansion — instead of relying only on intuition or the account balance.
5. When is it time to hire a finance professional?
It’s worth bringing in a finance specialist when you’re expanding or launching new products. They help build a transparent financial model, forecast cash flow, control expenses, and improve business efficiency. Hiring this person at the right time helps prevent losses and financial chaos.
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