Why Profit â Cash: You can be profitable on paper but run out of money. This happens when revenue is tied up in receivables, inventory, or delayed payments. Always track cash flow, not just profit.
Lifestyle Inflation Kills Businesses: As income grows, personal expenses often grow faster. This reduces your business safety net and limits reinvestment capacity. Keep lifestyle costs in check.
How Debt Impacts Survivability: Debt payments are fixed costs that don't care about your revenue fluctuations. High debt reduces runway and increases stress during slow months.
Reinvestment Changes Growth: Businesses that reinvest profits into marketing, tools, or team capacity grow faster. But over-reinvesting without reserves is risky. Balance is key.