Profit does not mean that there is cash in the bank. A growing bank account does not mean that you are making a profit.
Surprised? You're not alone. Most schools, CPAs, news reports, etc. focus on a company’s earnings, profits, and sales. That’s because those same institutions are geared toward teaching, working for, and reporting for BIG big businesses and public companies.
But if you are a small business, your most important measurements for the next 3 months or so have to do with cash:
So don’t be fooled by “the establishment” into thinking “profit, profit, profit.”
Think: “Profit with sustainable cash flow!”
Let me know in the comments below if “profit without cash” is a new concept to you, or if it’s not, how you learned about the concept!