In this episode, Ayisat delves into the critical topic of cash flow for business owners. She explains what cash flow is, its importance, and how it is calculated. Ayisat covers the three segments of cash flow: operations, investing, and financing, and emphasizes the significance of understanding cash flow for making informed business decisions. Ayisat also clarifies the difference between revenue and cash flow, and shares insights on free cash flow, providing a comprehensive overview of financial management for businesses.

Takeaways

• Business owners must proactively understand cash flow.
• Cash flow is the total money in minus money out.
• Cash flow statements are essential for financial health.
• There are three segments of cash flow: operations, investing, financing.
• Operating cash flow relates to core business activities.
• Investing activities include capital assets and equipment.
• Financing activities show how a business is funded.
• Free cash flow indicates money available for expansion.
• Revenue and cash flow are distinct concepts.
• Understanding cash flow is vital for business growth.

Resources:
Small Biz Catalyst Podcast: Driving Economic Change Through Innovation | Small Biz Catalyst
YouTube: @SmallBizCatalyst-b2h
Instagram: @SmallBizCatalyst
X: SBizCatalyst
https://youtu.be/MtHl2MbpPbY?si=BmAhgf2KcMEI4vur


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