Only 2 Business Types: Cash Pit vs Cash Flow #shorts

When it comes to cash, there are only 2 different types of businesses that you can own: cash pit and cash flow. So what's the difference between these 2 models? In cash pit businesses, you deliver the value and then you get paid. In a cash flow model, you get paid and then you deliver the value. Cash pit businesses have a large payday 1 to 2 times a year, while cash flow businesses bring in smaller drips of cash every day. Cash pit businesses have a few high-paying clients that have little to no reason to stay day. Cash flow businesses have tons of low-ticket clients coming to them daily. Cash pits create customized products for every client. Cash flow businesses productize their service and follow the same process for all clients. Essentially, cash pits are about liquidity and cash flows are about sustainability. Follow for more insight into entrepreneurship and business.