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In business, we're taught that profit is the ultimate measure of success. But what if the numbers on your balance sheet are misleading? According to business finance expert Avi Pinsky, many businesses fail not because they're unprofitable, but because they run out of cash. In a recent podcast episode, he revealed the often-overlooked truth: positive cash flow is the foundation of a healthy, growing business.
Avi calls cash flow the “sixth lever”—the one that holds the other five together. You can be great at generating leads and closing sales. Still, if you're not managing your receivables, forecasting your cash position, and separating "revenue" from "cash-in-the-bank," you're building on a house of cards. Avi's real-world examples demonstrate that a profitable company can fail without careful cash flow management.
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In business, we're taught that profit is the ultimate measure of success. But what if the numbers on your balance sheet are misleading? According to business finance expert Avi Pinsky, many businesses fail not because they're unprofitable, but because they run out of cash. In a recent podcast episode, he revealed the often-overlooked truth: positive cash flow is the foundation of a healthy, growing business.
Avi calls cash flow the “sixth lever”—the one that holds the other five together. You can be great at generating leads and closing sales. Still, if you're not managing your receivables, forecasting your cash position, and separating "revenue" from "cash-in-the-bank," you're building on a house of cards. Avi's real-world examples demonstrate that a profitable company can fail without careful cash flow management.