a business is a living entity with needs of its own, and unless the leaders pay attention to those needs, the business will fail.
Most people don’t understand the value of cash when they go into business. If they did, they wouldn’t waste it by purchasing brand new furniture, paying designers to produce logos, ordering fancy business cards and stationery, or spending money on dozens of other things that they don’t need and that deplete their start-up capital without getting the business one inch closer to viability—that is, the point at which the company can sustain itself on its own internally generated cash flow.
Gross margin is the most important number on the income statement.
(Gross profit is sales minus cost of goods sold. Gross margin is the percentage of sales that represents.)