There’s a saying in business: “Revenue is vanity, profit is sanity, and cash flow is king.” 

And yet, cash flow is the most overlooked metric in the startup world. Founders obsess over revenue milestones—$1M ARR, $5M ARR—but forget that plenty of companies die while “growing.” 

How? By running out of cash. 

At Pyro Advisory, we see this mistake constantly. Great products. Strong teams. Impressive revenue. But the bank account tells a different story. 

Why Startups Struggle With Cash Flow 

The problem often isn’t revenue—it’s timing. Money goes out faster than it comes in. Common culprits include: 

• Long payment terms. Customers take 60–90 days to pay, but expenses are due monthly. 
• Over-hiring. Bringing in staff for future growth without current revenue to cover them. 
• Chasing vanity growth. Spending aggressively to scale without controlling unit economics. 
• Poor forecasting. Assuming revenue will “catch up” without planning for lean months. 

The result? Cash crunches that stall growth—or worse, sink the business. 

The Pyro Advisory Approach: Maximising Cash Flow 

Cash flow isn’t just about cutting costs—it’s about strategic optimisation. Here’s how we help: 

1. Forecasting and scenario planning. Knowing exactly how cash moves month to month. 
2. Billing efficiency. Shortening cycles, tightening collections, and avoiding delays. 
3. Expense alignment. Scaling teams and operations in sync with actual revenue. 
4. Capital strategy. Helping founders decide when and how to raise, based on realistic burn rates. 

The goal isn’t survival—it’s flexibility. With strong cash flow, startups can seize opportunities instead of scrambling. 

Why EBITDA Matters Too 

Cash flow and EBITDA are often linked. While EBITDA shows profitability, cash flow shows liquidity. Both matter. 

Pyro Advisory helps companies optimise EBITDA by aligning costs and revenue drivers. That way, growth is not just fast but sustainable. 

A Startup Horror Story (And a Better Ending) 

We worked with a healthcare company that had $8M annual revenue but was burning $500K a month. Their sales were strong, but they offered extended payment terms while paying suppliers upfront. Cash was evaporating. 

With Pyro Advisory, we restructured billing cycles, renegotiated supplier terms, and improved forecasting. Within six months, cash flow turned positive. Growth continued—but without the cliff edge. 

That’s the difference between “growing broke” and “growing smart.” 

Why Founders Can’t Ignore Cash Flow 

Cash flow isn’t exciting. It’s not as flashy as revenue or growth metrics. But it’s the oxygen of a business. Without it, even billion-dollar ideas suffocate. 

Smart founders know that cash flow is the true measure of business health. 

 
👉 Don’t let your startup grow broke. Work with Pyro Advisory to maximise your cash flow and build growth that lasts