chapter nineteen

19 Achieving cash-flow positive — a startup’s holy grail

 
  • What does cash-flow positive mean?
  • Why is achieving cash-flow positive like finding the Holy Grail? You like sleep, don’t you?
  • Hit cash-flow positive? How does this reset investor perspectives about your startup?

Every startup founder and CEO starts their company with their eyes on the prize: steady growth, profitability, and a great exit. There are a lot of challenges to getting there. But along the way, there is a moment that is totally transformational for you, for your employees, and for your investors. And that moment is the moment when cash burn becomes cash growing. It’s where the runway becomes “infinite”. This moment is called cash-flow positive, and it truly is like finding the holy grail. You feel like falling to your knees and howling in sheer delight.

19.1 Cash-flow positive versus profitable

19.2 Liberation from the shackles of burn rate

19.3 The moral of this anecdote