Profit Soup Podcast

The Race to Profit

Episode Summary

Every new business is in a race to profit. They MUST turn profitable before the cash runs out. How do you know you have enough start-up capital to win the race? Beyond the budget for initial equipment, build-out and marketing, you’ll need cash reserves. How much? How do you know? Listen in for winning insights.

Episode Notes

• The “Race to Profit” means reaching profitability before your cash runs out.
• The hardest part of planning? Predicting how fast your sales will grow.
• Know your break-even point from day one—it’s your survival baseline.
• Many businesses fail not from lack of profit, but from poor cash flow planning.
• Offering customer credit can seriously strain your cash flow.
• Improve predictability by planning for multiple financial scenarios (best/worst case).
• A profit plan shows potential earnings; a cash flow plan tracks actual money in and out.
• Faster customer acquisition helps shorten your path to break-even.
• Track your cumulative cash balance—not just profit—to avoid surprise shortfalls.
• Big takeaway: Monitor both profit and cash flow to build a sustainable business.