Founder Foundations: Cash Flow Systemization 101
Steve explains why undercapitalization, not lack of profit, is what actually kills most businesses, and how a real cash flow statement helps you see it coming.
Steve Simonson
On-air link:awesomers.com/284
Show notes
This installment of Founder Foundations focuses on cash flow, which Steve calls the fuel a business runs on regardless of how profitable it looks on paper. He explains why businesses fail from running out of cash even while technically profitable.
He covers the basics of reading a cash flow statement, using it to forecast and plan rather than just report the past, and how showing suppliers your real cash position can help you negotiate better payment terms.
A solid primer for any founder who has never looked closely at their cash flow statement or doesn't know where to start.