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Entrepreneurs know that cashflow is king

  • By Alan Knott-Craig
  • January 2, 2016


Entrepreneur accounting


Some companies pay boast of valuation or revenue or profit or user numbers.


To an entrepreneur these numbers are meaningless (outside of Silicon Valley).


The only meaningful metric is cashflow. You need to spend less money than you make.



The easiest way to positive cashflow is to be frugal and to sell sell sell. Easy as pie.


Ignore the accountants, ignore depreciation, ignore goodwill, ignore your balance sheet, ignore your income statement, ignore your valuation, ignore your revenues.


Pay attention to your cashflow statement.


“Revenue is vanity. Profit is sanity. Cashflow is reality.”