Cash is King 👑

In business, profit is often seen as the ultimate goal. However, it's important to remember that even companies with high profits can struggle with poor cash flow. This is because cash flow, not profit, is the lifeblood of a business.

• Businesses with tight credit terms can suffer from low cash flow.
• Without enough cash on hand, a business may struggle to cover expenses.
• Cash flow is crucial for paying bills, investing in growth, and staying afloat during tough times.

Cash flow is the oxygen that keeps a business alive and thriving. Don't underestimate its importance! 💸

Business starts and incur lot of initial and unavoidable expenses, it gets back that money drop by drop through sales but while the money is not returned, there has been more expenses and this cycle continues until either stellar sales cover every penny or slow sales are not enough and company collapses.

Korea's Daewoo Group in late 80s was extensively expanding without cash in hand and they showed high un earned profits but could not handle cash shortfalls and despite being one of the biggest conglomerate, it collapsed.