Cash Flow 🌊

Cash flow is simply the difference in your bank balance from one year ago to today.

…or the difference from yesterday to today.

…or the difference from 10 years ago to today.

It’s simply the difference in how much cash you have access to from one period of time to another.

That’s it!

Cash flow can be either positive (more cash in the bank) or negative (less cash in the bank).

Here's the thing though: positive cash flow isn't necessarily good and negative cash flow isn't necessarily bad.

Why?

Positive cash flow can be bad if you took on a ton of debt to buy stuff that's not helping you make money.

Negative cash flow can be good if you took out cash for yourself as long as you have enough cash flow to meet obligations and keep your business financially healthy.

Of course, the goal of your business should be to generate enough positive cash flow that will…

…keep the business in business.
…allow you to grow your business.
…allow you to take out some for yourself.

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