Understanding cash flow is fundamental for any entrepreneur seeking to build wealth through income-generating assets. Cash flow refers to the movement of money into and out of a business or investment over a specific period. This financial metric is crucial because it determines the liquidity and financial health of an entity. For entrepreneurs, understanding cash flow goes beyond mere profit; it encompasses the timing and predictability of income and expenses. A positive cash flow is essential for sustaining operations, funding growth, and ensuring that obligations are met without resorting to borrowing or liquidation.
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