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January 14, 2020

Cash Flow, Not Profits

1 min read

Topic: Growth Agent Insight Video Insurance Agency Management Insurance Agency Growth Strategies strategy Start an Agency Grow an Agency

I think people get confused about what’s important in running a business. You know, we talk all the time about the bottom line, the bottom line is profits.

Growth Agent Insight - Cash Flow, not Profits from OAA on Vimeo.

Managing Cash in Your Business

People get so focused on making a profit, and the problem is that profits include a lot of things besides cash, and at the end of the day, cash is what you have to have to pay your bills. So, especially in a growing company, it’s critical to manage cash.

You can almost ignore profits if you have great cash flow. Lots of really rapidly growing businesses go bankrupt because they run out of cash. I made that mistake early in my business career.

We spent money based on the bottom line and then we said, “Oh my god, what’s happened? We don’t have any cash.” The thing you have to remember especially in the beginning stages of your business is to manage cash flow.

Really what I should say is that you need to manage cash flow for the rest of your life.  I’ve seen it happen decades into a business, you can never ignore cash flow.

Making a profit is important and paying attention to the bottom line is also important, but the bottom line is not the same as cash.


Many people have gotten themselves into trouble because they forgot and now there’s other stuff in profits besides cash. Cash is king. Cash is everything.

Tony Caldwell is a modern “renaissance man,” who is not only immensely successful in the field of insurance, but is also a writer, children’s advocate, mentor and even a licensed pilot.

Always keen on helping others make their dreams come true, Tony and his team have helped independent agents grow into more than 250 independent agencies. This has made OAA the number one ranked Strategic Master Agency of SIAA for the last 5 years, and one of Oklahoma's 25 Best Companies to Work for.

Tony loves to share his knowledge, insight and wisdom through his bestselling books as well as in free mediums including podcasts and blogs.

Tony and his family are members of Crossings Community Church, and he is very active in community initiatives: he’s chairman of It’s My Community Initiative, Inc., a nonprofit working with disadvantaged people in Oklahoma City; and chairman of the Oklahoma Board of Juvenile Affairs., and he has served through many other organizations including the Salvation Army, Last Frontier Council of the Boy Scouts of America, and the Rotary Club.

In his spare time, Tony enjoys time with his family. He’s also an active outdoorsman and instrument-rated commercial pilot.