Cash Flow vs Profitability: Which is Most Important for Your Food Business?

"Things can look really good from the outside and your business can be failing."   20% of businesses fail in their first year, 30% by their 2nd year, and an additional 50% fail in year three.   In this episode, Sarah is joined by John Haskell, CFO Consultant and owner of Ranch Right, LLC. John has over 20 years of experience helping ranches become more profitable, starting new ranch businesses, and turning around failing ranches. Together, they are shedding light on the common causes of failure in business, and answering the question: Is it more important to have positive cash flow in your food business, or to be profitable?   They explore the difference between the “economics” and “financials” of your business, and the need to be honest with yourself about both. Sarah and John also define the various stages of starting, building and running a business, and share their guidance for prioritizing cash flow or profitability at each stage.   You’ll hear:   What costs you MUST consider before launching your business, a new product or a new sales channel Why focusing on gross profit and cash flow is crucial in the early stages of your business to ensure financial stability What it means to “catch up to your overhead”, and how that impacts growth When you should start focusing on profitability in your business How to build cash reserves so can you weather the storms and seize opportunities during challenging times And More!    Bonus Clips from this Episode: Is leaving money in your business smarter than investing in the market? Connect with John Website: Ranch Right LLC Facebook: Ranch Right LLC Instagram: @ranchrightllc Book a Discovery Call   From Our News Segment Kroger-Albertsons Deal Would Remake Seattle-area Grocery Map   Stay Connected! Instagram: @TheGoodFoodCFOYouTube: @thegoodfoodcfo Join us in The Good Food CFO Community This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thegoodfoodcfo.substack.com