As a startup growth advisor with a strong focus on financial literacy, I want to share some valuable insights to help you navigate the challenges of running a sustainable business in the face of economic downturns.

Drawing from the lessons learned during the dotcom crash in '99 and the financial crisis of '08, it's crucial to prioritize profit and positive cash flows, especially in the startup world where cheap capital has led to a myopic focus on rapid growth at any cost.

Let's simplify some key financial terms that will empower you to make informed decisions and drive your startup's success:

1. Sales: The value of the deals or contracts you have closed. It's important to note that this value can be counted even before the money hits your bank account.

2. Revenue: The actual money you have received from the closed deals or contracts. Revenue is recognized when it is deposited into your bank account.

3. Statement of Cash Flows: This document tracks the cash coming into and going out of your business on a monthly basis. It provides a snapshot of your starting cash balance, cash made/spent, and ending cash balance.

4. CFN- (Cash Flow Negative) or Burn Rate: This term refers to the amount of cash your business is spending, which exceeds the cash coming in. It is important to keep a close eye on your burn rate, whether it's calculated monthly, quarterly, or annually.

5. CFN (Cash Flow Neutral): Cash Flow Neutral occurs when you don't have any reserve cash and need to ensure that what goes out must come in, or else you'll run out of cash.

6. CFP (Cash Flow Positive): Cash Flow Positive is the ideal situation where your business generates more cash than it spends. This is often the dream scenario for bootstrapped startups. However, in times of recession, it's crucial to monitor your cash flow closely to avoid getting into financial trouble if the downturn persists.

7. Cash Zero Date: This is the date when your bank account runs out of cash and there isn't enough cash coming in to support your expenses.

8. Income Statement: The income statement shows your revenue minus your expenses, resulting in your profit. It gives you an overview of whether your business is profitable or if you need to identify areas where major spending cuts can be made.

9. Above The Line Expense: These are expenditures that directly contribute to generating revenue. Examples include sales, marketing, customer experience, and product development aligned with revenue goals.

10. Below The Line Expense: These are costs associated with running the operational side of your business. It's important to continuously explore opportunities for cost-cutting in areas such as IT, operations, and administration.

11. Balance Sheet: The balance sheet provides an overview of your business's financial health, including assets, liabilities, and equity. Equity represents the remaining value after paying off all obligations.

12. Profit: Every investor will inquire about your profitability, even if you're in a growth phase and spending more than you earn.

13. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): EBITDA is a metric that shows your earnings before subtracting non-operating expenses. Investors often use an industry-specific multiple of EBITDA to assess the value of a company.

By understanding and applying these financial terms, you can improve your financial literacy and make informed decisions to drive sustainable growth for your startup, even in challenging economic conditions.

Remember to focus on multiplying revenue and reducing costs, regardless of your role within the company. If you're unsure about your role or how you can contribute, don't hesitate to ask for clarification and offer your assistance.

Your proactive approach may help you retain your position and successfully weather any downturns that come your way.