I think a lot about how we’ll manage the cash flows at Little Seed during the first few years of operation. It’s an extremely important topic because it can literally make or break your business... no matter how well you appear to be doing. Fast growing, seemingly profitable companies go under all the time and the culprit is typically poor cash flow management. One way to prepare for (and hopefully avoid) that unfortunate circumstance is to understand your fixed and variable costs. In this post I’ll cover what that means and how it can impact your business and in a later post I’ll expand into how it applies to various circumstances (debt load, working capital needs, etc).