You've probably already paid for the materials. You've definitely paid for the gas and you've covered the overhead. Now you're waiting for somebody else to give you your money back. And the bigger you get, the more dangerous that can become if you're not actually watching it. And then there's the timing problem. This is another one that I see constantly. The business might make plenty of money over the whole month, but the timing is terrible. You've got $40,000 going out this week and $60,000 coming in two weeks from now. Technically, we're fine. Today, you're not fine. That's cash flow. It isn't only about how much comes in and how much goes out.

And write down three numbers. Number one, how much cash do you have available right now? Number two, how much money do customers currently owe you? And number three, how much cash has to leave the business over the next 30 days? I want you thinking about payroll, materials, subcontractors, rent, debt payments, insurance, everything that you know is coming. Now compare those numbers. Now compare those numbers and just ask yourself, if none of my customers paid me for the next 30 days, what would happen? Could you still make payroll? Could you still pay your bills? Could you still pay yourself? Or would everything immediately get tight? Now I'm not asking this to scare you.