10/19/2026
Revenue is vanity. Profit is opinion. Cash is reality.
It’s an old finance saying. But after spending most of my career working with and running businesses, I think there’s a lot of truth in it.
I’ve seen businesses celebrate record revenue while wondering how they’re going to make payroll. That sounds contradictory. It isn’t.
A business can grow revenue while:
• Margins decline
• Inventory piles up
• Customers take longer to pay
• Debt payments increase
• Overhead grows faster than sales
• Cash quietly disappears
Which is why, when someone tells me: “We had our best sales month ever!”, my instinct is to say: “Great. how me the cash, Jerry Maguire!”
Revenue matters as does profit, but ultimately, cash gives you options.
Options such as
- Hiring more people to support the growth.
- Investing in the business to better serve customers.
- Buying new equipment to be more efficient in delivery.
- Weathering a downturn with turning to high cost debt.
- Acquiring a competitor to lead the market.
- Or simply sleeping better at night.
So celebrate the record sales month, just don't stop there.
Follow the money all the way to cash. That's usually where the real story is.