Cash Flow & Financial Health: The Metrics That Keep You Alive
October 2018. A successful SaaS company with: $10M annual revenue 20% profit margins 200 happy customers Growing 30% year-over-year Filed for bankruptcy. How? They were profitable on paper but bleeding cash in reality. The problem: They paid suppliers in 30 days Customers paid them in 90 days Meanwhile, they needed cash for payroll, servers, and growth The math was simple: For every $100 in new sales: They spent $60 upfront (servers, onboarding, support) They got paid $100 three months later Net: $40 profit… eventually But “eventually” requires cash to survive the wait. ...