A short YouTube monologue by Jayson Lowe addressing how much cash flow a business needs. Lowe emphasizes that positive net income does not guarantee cash flow, frames cash flow as essential ("like oxygen") to keep operations and decision-making functioning, and warns entrepreneurs—especially those using investor capital—about burning through cash without proper financial disciplines.
So from a business perspective, how much cash flow is good for a business? Wow. How much cash flow is good for a business? If you were to look at it just through the lens of most people when they evaluate a company, they look at a company from a lens of revenue minus expenses equals you're either in a positive or a negative net income situation. You can have a positive net income business that has very little, if any, cash flow. So cash flow to a business owner is much like oxygen. It's not only necessary to keep the business alive, but it also keeps you, keeps your muscles filled with the energy they need. It keeps your brain operating, it keeps your heart pumping. And so cash flow means everything to a company. And most entrepreneurs when they get going in their business journey, nobody explains that to them. They, they burn through cash, especially if they have investors money. They look at it as, you know, a run rate, a burn rate. There's all kinds of terms for wasting other people's money. You've got to put yourself in a position as a business owner where you develop the right financial disciplines from day one, that's not easy to do. So you've got to work with somebody who knows how to do that, and thank goodness we know how to do that really well.
