Why Cash Flow Beats Profit Every Time

It’s easy to obsess over profit margins, but cash flow is the real heartbeat of your business. You can show profit on paper and still be broke if customers take 90 days to pay. Cash flow is what keeps the lights on, the team paid, and growth moving.

Smart founders at $1M+ know their cash position at all times. You don’ t need to know every single line item, but you should have a pulse on your cash flow. This will allow you to negotiate payment terms, speed up collections, and keep a cash cushion if you were to ever need it. Profit looks good in reports; cash flow keeps you alive. Focus on the money in motion, not just the money on paper.