Why Do Profitable Service Businesses Still Struggle With Cash Flow?
Many businesses look healthy on paper but still feel tight on cash.
Have you ever experienced a month that was profitable, but cash flow was still a challenge?
Forum Discussion
For me, it was as simple as being bad with personal finances. As a single owner/operator, the company was effectively an extension of my personal finances. The fix was hiring someone to take over the financial tasks so that I no longer see the accounts or have to be responsible for timely AP transactions. It instantly transformed the business into its own entity in my eyes, and my personal finance habits no longer affect it. The result is that capital is finally building steadily, which is enabling growth.
Totally agree!! I used the business savings as my personal piggybank for a number of years. I learned the hard way (against a ticking clock) that I can't do that anymore! Have you listened to Dave Ramsey's Entreleadership Podcast? It definitely helped provide insight!
