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Saket Sambhav
•
ADJUVA LEGAL® • 22d
"Revenue is Vanity, Profit is Sanity, But Cash is King." 👑 A Lesson Every Founder Must Learn. There's a famous saying in business that every founder needs to tape to their monitor: "Revenue is vanity, profit is sanity, but cash is king." It's easy to get them mixed up, but understanding the difference is critical for survival. Here’s a simple breakdown: Revenue is Vanity: A massive revenue number (like ₹10 Crores!) looks impressive in headlines and pitch decks. It feels good. But it doesn't tell you if your business is actually healthy. It's an ego-booster, not a health report. Profit is Sanity: 🧠 This is what’s left after all your expenses are paid. A profitable business is a sane, sustainable business. It shows your model works and you're not just buying growth. But even profit can be misleading on paper... Cash is King: 👑 This is the actual money in your bank account. It's the oxygen your startup breathes. You can be "profitable" on your P&L sheet but still go bankrupt because you don't have enough cash to pay salaries or rent. A company can show a loss on paper but have cash in the bank (like after raising a funding round). Conversely, a company can show a profit but have zero cash because clients haven't paid their invoices yet. Don't get hypnotised by vanity metrics. Stay sane by focusing on profitability. But above all, protect and manage your cash flow. Cash is the ultimate king. What's your best tip for managing cash flow in an early-stage startup? 👇 --- Pic credit - Forrest K. Derr
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