In an interview with billionaire Mark Cuban, he shared a crucial piece of advice for entrepreneurs and business owners. Not knowing this particular thing could potentially lead to losses in your business.
@evancarmichael You can’t become a business owner without knowing this. #entrepreneur #business #businessowner #markcuban #financialliteracy #finance #businessadvice ♬ original sound – Evan Carmichael
In that clip, Mark Cuban emphasizes the importance of understanding the difference between profit and cash. Sometimes, you may think your business is profitable, but it could be heading towards failure due to a lack of cash flow. It’s not enough for your profits to be increasing based on the profit and loss statement alone; your cash flow should also be stable or increasing. Because when your business runs out of cash, it can lead to bankruptcy.