Want buy business, no experience & need help with term: SALES REVENUE, CASH FLOW....

C

charlietsg

New member
...How's related to PROFIT ? I have been an employee and due to circumstances beyond my control have to consider doing small business but does not understand terms used in business for sale advertisement. Hope someone can offer advices. Much appreciated.
 
Revenue is the amount the company takes in before paying bills.

Profit is what is left over after paying bills.

Cash flow concepts are trickier to explain. Basically, anyone opening a business should take at least 3 classes in basic accounting.
 
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