Confusing “profitability” with “cash flow” puts your startup at risk. Even the most profitable companies can fail — and when they do, they’re always caught by surprise.

Financial jargon is not only confusing, but many of the words are used casually as if everyone understands them. In our everyday lives, it’s usually not a big deal since our ordinary conversations typically don’t need that level of precision. But in business, these words matter.

This is especially true with words like “profit,” “cash flow” and “working capital.” If you don’t understand the differences, you’re putting your startup’s financial health at risk.

In this episode you will learn:

1. Financial terms you should know — explained in plain English.
2. The most important difference between cash and profit.
3. The 3 strategic advantages of having cash on hand.
4. The value of a financial cushion (as opposed to a war chest).

Resources:

• The Difference Between Profit & Loss and Cash Flow Projections
• Financial Projections Explained (Even if You’re Not a Numbers Person)
• Retain Your Ability to Think Strategically
• How to Find Out What Your Customers REALLY Want
• More details about my startup advisory services

SPECIAL OFFER:

• Listeners can get 1 FREE hour of consulting by using the code “startup” or mentioning this offer when they book a call.

Connect:

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