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Cash Flow for Makers: Why Profit Isn't Money in the Bank

Profit is a number on paper; cash is what's actually in your account. They're not the same, and the gap is where makers get caught. Here's how to manage it.

Here's a trap that surprises a lot of makers: you can be profitable and still not have money to pay for your next supply order. Profit is what you earn on paper; cash flow is the actual timing of money in and out of your account. A healthy business can hit a cash crunch simply because the money's tied up somewhere it can't reach.

Where a maker's cash gets stuck

  • In materials: you pay for supplies up front, before they become sales.
  • In finished stock: products sitting unsold are cash on a shelf, not in the bank.
  • In slow channels: wholesale and some platforms pay out later, not instantly.

Each of these is money you've spent or earned that you can't yet use. The more of it, the tighter your cash, even if the business is profitable.

How to keep money moving

  1. Don't over-buy materials. Order to your real usage and lead time, not in bulk "to save."
  2. Don't over-make. Finished stock that sits is cash parked; watch your turnover.
  3. Use pre-orders for big or custom runs so customers fund the materials.
  4. Keep a small cash cushion for the gap between paying for supplies and getting paid.
Profit is the score at the end of the year; cash flow is whether you can pay for next week's supplies.

Watch where your money is sitting

Most cash crunches come from money quietly tied up in too much stock or too many supplies. Keepsel shows what you hold in materials, at what cost, and from the Maker plan your finished goods too, and you can ask Suli what sold last month. You can spot cash that's parked on a shelf and free it up before it leaves you short.

Run the whole shop from one conversation.

Put this guide to work

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