Understanding the Types of Money

There are three primary types of money that entrepreneurs should focus on: cash flow, wealth, and enterprise value. Cash flow refers to the income generated from business operations, allowing for immediate spending. Wealth involves long-term investments that appreciate over time, such as stocks or real estate, which generate returns that can stabilize financial futures. Enterprise value, however, is the worth of a business if sold, and prioritizing this can fundamentally change an entrepreneur’s approach and success in building a business that is both sellable and impactful.