Chuck’s business makes a healthy profit. George’s business has a strong cash flow. Who is better off? Answer: It depends. Profit is essential for your business, but without good cash flow, you could still wind up in big trouble. And don’t mistake one for the other. Profit is the money left over after you pay all your expenses. Cash flow is the interplay of money coming in and going out over time. Let’s say it costs you $250 to do a job for which you charge $350. That’s great profit margin: better than 28 percent. But suppose you bill the
