Cash Flow

The movement of money in and out of your business. Positive cash flow means more money is coming in than going out.

A profitable business can still fail if it runs out of cash. Cash flow problems kill more businesses than lack of profit does. Managing cash flow is a non-negotiable founder skill.

Your business made £5,000 profit last month, but you spent £8,000 on inventory that has not sold yet. Your cash flow is negative even though your business is growing.