The Most Important Start-up Tool to Survive an Economic Crisis
If you’re like most entrepreneurs assessing the current economic landscape, you are sheltering in place and have several competing priorities. While all these issues are important, your highest priority is having a granular, specific, up-to-date understanding of your cash position. Not growth, not adding new customers, not profit… cash. Profit does not equal cash because you can’t spend profits. It’s possible to have $200k of profits and no cash (maybe a customer hasn’t paid yet), or $200k of cash and no profits (perhaps you’ve not paid a bill yet, or you’ve just borrowed money). Extreme, tactical management of your cash