I am a finance professional, and I will give you a tip. The same tip a few different ways. Businesses go insolvent because they run out of cash, not because of

I am a finance professional, and I will give you a tip. The same tip a few different ways. Businesses go insolvent because they run out of cash, not because of profits and losses. It is perfectly possible to make a loss for years if you have the cash. It is perfectly possible to run out of cash at a profitable business. Learn the basics of forecasting your cash flows, and outsource your accounting. Burn-rate and runway are short-hand terms for chatting with VC's, but are no substitute for understanding your cash flows. Cash is king, cash is the lifeblood of a business. The finest Financial Controllers specialize in optimizing cash-flows. A cash-flow forecast is a great way to view your business, model expansion plans and work out your funding requirements. One last time learn about cash flows. Depreciation, amortization, taxation etc are for accountants.