What is more important about "profit" and "cash flow"?

💰 "profit" and "cash flow," what is more important?

Many people think that a profitable business is a successful business.

But the truth is...

📌 Many businesses do not fail because of a "lack of profit."

But failed because of "lack of cash."

Imagine that...

You sell a lot of goods, you have a full hand order, but the customer hasn't paid yet.

While you still have to pay.

✅ Rent

✅ Staff costs

✅ Raw materials

✅. Water, electricity.

If the cash on hand is not enough, the business can stumble immediately.

🎯 This is why "cash flow" is so important.

The main simple idea is

💵 Money In > Money Out = Strong Cash Flow

💸 Money out > Money in = Risk of liquidity problems

5 ways to generate good cash flow

1️⃣ have emergency reserves.

2️⃣ Control unnecessary costs

3️⃣. Keep track of revenue-expenditure consistently.

4️⃣ Not expanding the business too fast.

5️⃣ Money for unexpected events.

🌱 Whether you're an employee, a shopkeeper or a business owner,

"Survive first and then grow."

Because the profit says how much money you make

But cash flow says how long you'll survive.

Which financial matters do you think are the hardest?

Comments can be exchanged. 👇

# Finance # Money management # Cash flow # CashFlow # Financial knowledge