Awesome interview with Paul Sweeney from Pretium Solutions where we discussed the issue around many startups and small businesses who face varying issues around cashflow and profit.
The interview went over the 15 minutes we originally planned for - only because Paul had some amazing, detailed answers worth listening to.
We discussed these key themes & topics:
- What is the difference between cashflow and profit?
- How do you identify within your numbers/financials where you may be having cashflow issues?
- Why do you believe business owners or startups founders get confused with understanding the difference between the two?
- How would you manage understanding these metrics? Are there tools you recommend? Or questions you would ask or expect from an accountant?
- What do you recommend to your clients or anybody watching this, when they have good profit but poor cashflow?
- Ideally, what sort of runway do you need in your business as a baseline? (Especially in a down period like Covid-19)
- What tips would you recommend when pushing hard for growth, such as a startup wanting to scale fast, if they haven’t got the best cashflow currently?
- What processes or tools do you suggest for companies that have high debt?
I hope you enjoy the interview :)