I’ve watched profitable companies go out of business, and it’s always a strange thing to witness. From the outside, everything appears healthy. Revenue looks strong, margins look respectable, and the owner feels like the business is doing well.

Then payroll week shows up and the tone changes.

The bank balance is tighter than expected. A few receivables haven’t landed yet. Vendors are waiting to be paid. The owner starts checking the bank account a few times a day hoping a payment hits sooner than later.

That’s the moment when reality shows up. Profit and cashflow live in two different places.

Profit makes the business look healthy on paper. Cashflow keeps the lights on and the team paid.

What surprises me is how often this happens in our industry, because most of our projects should naturally support positive cashflow. We sell projects, install equipment, and collect money along the way. The structure of the work gives us every opportunity to collect before we spend.

Yet I still see businesses quietly draining their own cash.

Receivables stretch out longer than they should. Equipment gets ordered months before the job actually needs it. Shelves slowly fill with parts that should have been returned weeks ago. Projects move forward while the company carries the financial load waiting for the final payment.

None of these habits feel dramatic when they happen. Each one looks small in the moment. Over time, those small leaks stack up and start squeezing the business.

If this sounds familiar, you’re not alone. The good news is that most cashflow problems come down to a few fixable habits.

Click here to read the full article and see the simple changes that can stabilize cashflow and put you back in control.

Stay VITAL,

Rene & the team