Timing, not profit.
THE DISTINCTION
Profit is income less costs over a period.
Cash flow is when money actually moves.
WHY IT MATTERS
A profitable business can run out of cash.
HOW
Costs paid before income arrives Customers paying late Stock bought ahead of sales
WHAT TO TRACK
What is due in, and when What is due out, and when What you actually have
WHAT TO PRODUCE
A simple forecast for the coming weeks.
WHAT THAT SHOWS
Whether you can meet upcoming commitments.
WHAT TO DO IF IT LOOKS TIGHT
Chase what you are owed Delay discretionary spending Talk to suppliers early
THAT LAST POINT
Suppliers accommodate a business that tells them in advance.
They do not accommodate silence.
WHAT TO BUILD
A buffer covering quiet periods.
WHAT TO SET ASIDE
Tax, and anything owed to others.
WHAT TO REVIEW
Weekly, in the early stages.
