Profit vs. Cash Flow ๐ธ: The Silent Startup Killer! ๐ Heads up, founders! You can be 'profitable' on paper but still go bankrupt. Why? Profit: Revenue - Expenses (often accrual-based). Cash Flow: Actual cash IN โก๏ธ - Actual cash OUT โฌ ๏ธ. Problem: When a business has late payments from customers or high upfront costs, which can drain its cash reserves quickly, even if it is making sales and showing a profit on its income statement. Lesson: Manage your BANK BALANCE like a hawk! ๐ฆ
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