Cash flow and profit – both are important elements of a healthy, growing business. But don’t get them confused as being the same thing.
One of the biggest reasons that many businesses and entrepreneurs go out of business, is because they don’t manage their cash flow. Just because a business is profitable, doesn’t mean it’s got sufficient cash flow to sustain itself.
Understanding the difference between the two, and what it means for the business you want to invest it, is important.
In this episode, you will learn
- The definition of cash flow
- The definition of profit
- What is means for a business to be cash-flow positive and cash-flow negative
- If a business can be profitable but have negative cash-flow
- Which of the two are more important
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