Why cash flow matters
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.
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.