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GLOSSARY

Cash flow

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Cash flow refers to the net amount of cash and cash-equivalents moving in and out of a business. It is crucial for startups to manage cash flow effectively to ensure they have enough liquidity to cover expenses and grow sustainably.

What is Cash Flow?

Cash flow is the money coming in and going out of your startup. It's essential to keep track of this to ensure you have enough cash to operate and grow.

Why It Matters

Managing cash flow helps you avoid running out of money and allows you to make informed financial decisions for your startup's growth.

Examples

  • Receiving payments from customers
  • Paying suppliers and vendors
  • Invest in product development

Related Concepts

  • Burn Rate: How quickly your startup is spending its cash reserves
  • Profitability: Generating more revenue than expenses

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