Why it is important to understand the difference between revenue, profit, cash flow, and net cash in the bank? This understanding is critical to a successful business, but it's not as simple as it seems. Listen to find out more.
Highlights
- Revenue and sales are obviously critical.
- The market votes on your idea by using their wallet.
- Revenue is cash that customers pay to you.
- Profit is a theoretical number and should be used as an indicator.
- What really matters is cash in the bank vs debt and liabilities.
- Many entrepreneurs generally like to look at sales and revenue and miss profit issues.
- Make sure to stay on top of and understand financial statements and how to analyze them to make sure that you are focusing on the correct strategies.
- Always get comparisons to previous periods of time.
