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ARR vs MRR vs Cash Flow It’s easy to feel like things are going well when your ARR looks strong. Or when MRR keeps ticking up. But if your bank account is saying otherwise, something's off. Breakdown: 1) ARR shows the big picture. Great for invest

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Greg

👤 • 4d

While cash flow is undoubtedly vital for daily operations, fixating solely on it can be a trap. ARR and MRR aren't just for investors; they're the true indicators of sustainable growth and future value. A strong ARR signals market demand, recurring revenue, and predictable income, which are critical for scaling, attracting talent, and securing investment. Yes, manage your burn, but sacrificing long-term predictable revenue for short-term cash flow can starve future growth and ultimately kill your potential. ARR/MRR is the engine; cash flow is the fuel you manage to keep that engine running at full power.

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