123: Making $10M? Here’s Why You Still Might Be Broke
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Jul 24, 2025
Discover why many construction companies can generate millions in revenue yet still face financial droughts. Learn about the critical differences between profit and cash flow and how net profit can be misleading. Steve reveals the hidden costs that can drain your cash and emphasizes the importance of understanding working capital. Equip yourself with financial benchmarks to safeguard your margins and alleviate payroll stress. This insight is essential for contractors looking to avoid common financial traps.
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volunteer_activism ADVICE
Compare Your Margin To Benchmarks
Check industry benchmarks before claiming a competitive advantage.
Use Cultivar's published benchmarks to compare your operating profit by trade.
question_answer ANECDOTE
CFMA Talk Challenged Competitive Claims
At a CFMA conference, most executives claimed they had a competitive advantage.
Steve challenged them by defining advantage as earning above-industry-average profits and urged benchmarking.
insights INSIGHT
Profit Isn’t Cash Flow
Profit is not the same as cash flow and a business can be profitable yet go bankrupt.
Seventy percent of companies that fail are profitable when they close, but lack cash.
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You can do $10M, $50M, or even $100M in revenue and still be broke. That’s the brutal truth behind many construction companies today.
In this episode, Steve breaks down the critical difference between profit and cash flow—and why net profit on your income statement can lie. You’ll learn why even “profitable” businesses go bankrupt, how working capital and CapEx quietly drain your cash, and the financial benchmarks every contractor should know.
Whether you’re trying to get a grip on your numbers, protect your margins, or stop stressing about payroll, this episode will help you avoid the most dangerous financial traps in construction.
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.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendations. The Company is not affiliated with, nor does it receive compensation from, any specific security. Please see https://www.coltivar.com/privacy-policy-and-terms-of-use for additional important information.
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