11/05/2026
The Owner’s Playbook: Where is Your Cash Getting Stuck
One of the most frustrating situations for a business owner is looking at the numbers, seeing that the business is making money, and wondering why there isn't enough cash to cover payroll.
Before you assume you have a profitability problem, take a closer look at the timing of your money.
A business can deliver $40,000 worth of services in a month but collect only $30,000. That $10,000 difference isn't necessarily lost revenue. It may be sitting in unsubmitted invoices, insurance claims, accounts receivable, or jobs waiting for final billing.
The problem is that payroll, rent, and vendors don't wait for customers to pay.
I encourage owners to watch three numbers separately: revenue earned, revenue billed, and cash collected. Then establish a billing rhythm that prevents completed work from sitting around waiting to become money.
The Play: Review your earned-but-uncollected revenue every week. Identify where cash is getting stuck, assign someone to clear the bottleneck, and make timely billing a non-negotiable operating standard.
