Lesson 5 of 5
Cash Flow Basics
Why profitable shops still run out of money — and the simple weekly habit that prevents it.
~7 min
Cash flow is the timing of money in and out of your account. A shop can be profitable on paper and still go broke if customers pay slowly, inventory is bought in big chunks, or platforms hold payouts.
Net cash flow (period)
Net cash flow = Cash in (period) − Cash out (period)
The three cash-flow killers
- Buying inventory faster than it sells.
- Long payout schedules (Etsy, Shopify Payments holds).
- Refunds and chargebacks landing the same week as bills.
Key takeaways
- Cash flow is about timing — not total profit.
- Track cash in, cash out, and balance weekly to catch problems early.
Related Guides
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Related Calculators
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Help Me Decide
Troubleshooting
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