[CallMeJim]

> Making a profit requires cash flow management, but managing cash flow does not require making a profit. This article does talk about managing cash flows in a way that involves never making a profit.

Isn't the exact opposite true?

I work with businesses which import goods and sell them. The vast majority of these make a steady profit without any thought to cash flow management. Accounts receivable are a mess, payment terms are long and they have a lot of cash tied up in working capital - but they are making enough of a profit to make up for this.

In contrast, you can stay in business making a loss with clever cash-flow management, but not forever. Equity will decrease year over year, and new sources of cash (lending, selling shares) need to be found to finance the continued operation of the business.

[hansvm]

The opposite isn't quite true either. Cash flow management can allow, e.g., a growing business to continue to operate even without additional sources of cash. So long as the business can turn a profit before growth has stalled for too long there will be no issues.