I often hear contractors talk about the nice profit they made on a job. I understand what they are getting at, but what they really mean is they made a nice margin on a job. Margins are not profit. Your ability to earn a consistent profit depends on understanding the difference between the two.
As a coach, I’ve witnessed a lot of suffering in business. Some of it is normal and transient, but a lot is persistent.
Why does having a profit not always translate to available cash? Unveil the connection between profitability and cash flow challenges, exploring the factors that can leave you questioning the absence of funds despite a profitable outcome.
I have been working with contractors throughout the trades for more than 27 years, and I have watched a lot of once-profitable companies go out of business. The process of going out of business is gradual, often taking three to four years, and most don’t even realize they are in trouble until it’s too late….