Cash flow ≠ profit. You might look profitable on paper but still go bankrupt in reality. Why? Timing. You pay suppliers and salaries now.
Your customers pay you 30–60 days later.

The 4 Most Common Cash Leaks

1. Receivables take too long

Customers pay in 60–90 days. That money is yours, but it hasn’t arrived yet.

Warning sign: more than 30% of your revenue is stuck in receivables > 30 days.

2. Inventory piling up

Stock in the warehouse = money that isn’t moving.

Warning sign: inventory turnover longer than 45 days.

3. Fixed costs are too high

Rent, salaries, subscriptions — what made sense before may not make sense now.

Warning sign: fixed costs > 60% of total expenses.

4. Mixing business and personal money

You don’t know how much your business actually spends.

Warning sign: you can’t answer last month’s business expenses without checking your bank account.