121: Profit Is Lying to You (Why Cash Flow Tells the Real Story)
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Jul 10, 2025
Explore the hidden financial gap that plagues many businesses, where profit looks good but cash flow tells a different story. Delve into the crucial differences between profit and cash flow, especially in the construction and landscape industries. Learn why focusing on cash flow management is essential for financial stability. A practical cash flow blueprint is also shared to help business owners navigate these challenges and secure their growth.
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insights INSIGHT
Profit Isn’t Cash
Profit on paper is not the same as cash in the bank and can mask insolvency risk.
You can show profitable jobs yet be one unpaid invoice away from running out of cash.
question_answer ANECDOTE
Triggered By A Misleading Example
Steve describes hearing a popular creator claim a landscaper makes $400k on $2M revenue and felt alarmed.
That example sparked his episode to correct common misrepresentations about business finances.
insights INSIGHT
Margins Need Clear Definitions
Distinguish gross profit (revenue minus COGS) from operating profit (after overhead) because they mean different things.
Ambiguous profit claims often omit which margin is referenced, creating false impressions.
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Your profit looks great. So why does your bank account feel like it’s bleeding?
In this episode, Steve breaks down the hidden financial gap that’s quietly wrecking good businesses. If you’ve ever wondered how you can show a healthy margin on paper but still struggle to make payroll or invest in growth, you’re not imagining it. This is the hard truth most owners miss.
Disclaimer: The views expressed here are those of the individual Coltivar Group, LLC (“Coltivar”) personnel quoted and are not the views of Coltivar or its affiliates. Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Coltivar has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
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