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Cash flow for entrepreneurs part 1 – profit vs cash


Most start-ups fail, and the second most commonly cited reason for failure is running out of cash. One reason for this is that while it is easy to project losses and, hopefully, future profits, it is not so trivial to calculate cash flow. And cash flow us usually (but not always) worse than accounting loss or profit. This gap can lead businesses to run out of cash more quickly than expected. Here’s part 1 of a 6 part short, snackable guide to cash flow.