Know your profit, cash flow, and when you'll run out of money
Stop guessing about your finances. You'll learn the three numbers every founder must check weekly: gross margin (profit per sale), cash flow (money in vs out), and runway (how long until you need more cash). You'll understand why you can be profitable but still run out of cash, how to forecast three months ahead, and what to do when numbers don't match your expectations.
Gross margin tells you how much money is left after paying for what you sold. It's one of the most important numbers in any business.
4 min read · Beginner
Net profit margin is what's left after every cost has been paid. The ultimate measure of whether a business is actually making money.
3 min read · Beginner
A profitable business can still run out of cash. Understanding cash flow is survival knowledge for every founder.
4 min read · Beginner
Working capital is the money available to run your business day-to-day. Too little and you can't operate; too much and it's inefficient.
3 min read · Intermediate
EBITDA is one of the most widely used measures of business profitability. Here's what it means and when to use it.
4 min read · Intermediate
Break-even point is the level of sales at which your business covers all its costs and begins to make a profit. Every business owner should know this number.
5 min read · Beginner
Contribution margin tells you how much each product or order contributes to covering your fixed costs. Essential for pricing decisions.
3 min read · Intermediate
Accounts receivable is money owed to you by customers. Slow-paying customers are a hidden cash drain.
3 min read · Beginner
Accounts payable is the money your business owes to suppliers. Learn how to manage it to protect cash flow.
4 min read · Beginner
Follow this learning path to master financial control: master your money.
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