A profitable business can still run short of cash. Revenue may be recognised before a customer pays, while wages, rent and suppliers must be paid on schedule. Understanding that timing is a basic part of running a company.
Start with a rolling cash forecast. List expected receipts and payments by week, record when invoices are likely to be paid, and update the forecast as actual results arrive. Separate committed expenses from spending that can be deferred.
Working capital connects the forecast to everyday decisions. Inventory ties up money until it is sold; unpaid customer invoices delay cash receipts; supplier payment terms affect when money leaves the business.
Before expanding, consider what happens if a large customer pays late or sales arrive below plan. A forecast makes those trade-offs visible. This is an educational explainer, not a report about a particular company.