Founder Foundations: Financial Statements 101
Steve breaks down the P&L, balance sheet, and cash flow statement in plain terms, and why cash flow, not profit on paper, is the number that actually keeps a business alive.
Steve Simonson
On-air link:awesomers.com/282
Show notes
As part of his Founder Foundations series, Steve walks through the three core financial statements: the income statement, balance sheet, and cash flow statement, and why cash flow is the one entrepreneurs most often ignore.
He shares an example of a business owner who negotiated 90-day supplier terms to fund inventory without hurting his own cash position, and explains the difference between fixed and variable costs and why understanding contribution margin matters for pricing decisions.
A useful primer for founders who can read a P&L but haven't thought hard about cash flow.