Profitability means generating more income than the costs and expenses required to operate. In a startup, it is a milestone after minimum viable product and product–market fit, when go-to-market must turn demand into a durable business. section 16.0 section 19.1
The uncomfortable catch: profitability is not the same as cash-flow positive. You may record a profitable sale while waiting for the customer’s payment, leaving too little cash for bills or payroll. section 19.1
Keep the distinction practical:
- Track burn rate: net cash leaving the company after revenue and total expenses. section 19.1
- Watch debtors days: slow collection can strand cash even when accounts receivable are strong. section 19.1
- Treat profitability as valuable, but make sure cash arrives quickly enough to cover payroll and operating bills. section 19.1
