Cash Flow Things I Learned the Hard Way

The cash flow equation is really simple: Money in, minus money out, equals X. The ‘X’ factor is perhaps the single most important factor in determining whether or not a business will survive the first quarter, let alone the first few years. If ‘X’ is positive then the likelihood is that the business will survive; if it is negative, sadly the converse is true. Even a profitable business may not survive its own success if the cash flow is negative because the growth cannot be paid for.