Introduction

If there’s one thing I see tripping up good businesses time and again, it’s this: a profitable business can still run out of cash. Sounds crazy, right? But it happens — and often.

The Difference Between Profit and Cash Flow

Profit is what’s left on paper after you subtract your expenses from your income.

Cash flow is what’s actually in your bank account, available to pay wages, suppliers, or tax. Big difference.

You can have strong sales and solid margins but still find yourself asking: “Where’s the money gone?” That’s the cash flow trap — and it’s more common than you think.

Why Cash Flow Is King

• It’s what keeps the lights on
• It lets you sleep at night
• It gives you room to plan, grow, and breathe

What Healthy Cash Flow Looks Like

• You can pay your suppliers on time
• You know when big bills are coming
• You’re building a buffer, not constantly borrowing

3 Practical Tips for Better Cash Flow Today

1. Review payment terms – Are clients paying too slowly? Can you shorten terms or offer early payment incentives?
2. Forecast ahead – Look at the next 90 days, not just the next 7.
3. Know your break-even point – So you know exactly what you need to bring in to stay afloat.

Final Thought

You don’t need to be a numbers nerd to take control of your cash flow — you just need the right setup and a little support.