Here’s a simple description of why cash flow is the most important financial measurement in business.
Cashflow positive means: More ‘actual’ cash money is coming in than is going out. It does not mean revenue exceeds expenditure.
Hence:
It’s impossible to go broke while your business is cash flow positive.
It’s possible to broke while your business is making a profit.
This is the most important financial fact startups must know and understand.
Hi Steve, the link is missing.
There is no link intended – this lesson is short for good reason.
Steve.