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Positive cash flow is actually way more important than profit, although you should have both ideally. If you are running a positive cash flow business with goo
by jonbarker 8y ago
Positive cash flow is actually way more important than profit, although you should have both ideally. If you are running a positive cash flow business with good growth and accurate depreciation numbers on fixed assets, you are in a better position than a profitable microbusiness in a small market. Amazon's breakthrough wasn't realizing this, it was realizing how big the ecommerce market was and how to grow to be able to address the whole market using cash flow to invest. They also used a large pile of investment to get there along the way too. (Four negative cash flow years in their history according to this)): https://realmoney.thestreet.com/articles/08/12/2016/comparing-amazon-then-tesla-now https://realmoney.thestreet.com/articles/08/12/2016/comparin...