Profit doesn't keep the lights on. Cash does.
Plenty of profitable businesses have gone under because profit on paper and money in the account are not the same thing.
You can book a great month and still miss payroll — the sale is "made," but the cash arrives in sixty days, and your bills are due now. Profit is an opinion. Cash is a fact. Owners who only watch the profit line get blindsided by the gap between earning money and actually having it.
Every month you track profit, but not cash flow, is a month you're flying blind to the thing that actually kills businesses.
Do you know, right now, how many months of cash you have?
P.S. Revenue is vanity.
Profit is sanity.
Cash is survival.
Plenty of profitable businesses have gone under because profit on paper and money in the account are not the same thing.
You can book a great month and still miss payroll — the sale is "made," but the cash arrives in sixty days, and your bills are due now. Profit is an opinion. Cash is a fact. Owners who only watch the profit line get blindsided by the gap between earning money and actually having it.
Every month you track profit, but not cash flow, is a month you're flying blind to the thing that actually kills businesses.
Do you know, right now, how many months of cash you have?
P.S. Revenue is vanity.
Profit is sanity.
Cash is survival.
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