Cash is King
Cash is King – and protecting it is how your business survives and thrives.
Profit vs Cash Flow – Why You Need to Know the Difference.
Running a business isn’t just about making sales – it’s about keeping money moving in the right direction.
Profit = what’s left after you subtract all expenses from your revenue.
Cash flow = the money actually moving in and out of your business to cover bills, wages, tax, gear, repayments… the lot.
Here’s the reality, a business can be profitable yet still run out of cash, and it can have strong cash flow while still not making a profit.
That’s why keeping an eye on both is non-negotiable if you want to grow (and sleep better at night!).
6 Monarch must-knows for cash flow success
- Know your cash position. Keep your cash flow statement updated – spot shortfalls early.
- Build a buffer. Aim for at least 2 months of operating expenses tucked away.
- Be realistic with revenue. If sales won’t hit breakeven – act now.
- Get clear payment terms, check credit upfront, and follow up quickly.
- Remember: every dollar spent chips away at cash reserves – plan your spend.
- Budget like a boss – and stick to it.
