The Hidden Problem Costing You Your Business Growth
Jason had built a solid electrical contracting business from the ground up. He had great projects, a steady pipeline of work, and even turned a healthy profit. But every month, without fail, he found himself scrambling for cash. Payroll, supplier bills, and tax payments always seemed to land at the worst possible time, leaving him short—again.
“Where does all the money go?” Jason would ask his bookkeeper. The reports showed a profit, but his bank account told a different story. He had no idea why this kept happening, and worse, no clear way to fix it.
If this sounds familiar, you’re not alone. Many business owners in the building and construction industry struggle with the same problem. You’re making money, but somehow, cash is always tight. And without cash, growth stalls, stress skyrockets, and every month feels like a fight to keep things running.
The Real Reason You’re Running Out of Cash
Here’s the hard truth: profit and cash flow are not the same thing. Just because your books show a profit doesn’t mean you have money in the bank. The construction industry, in particular, has unique cash flow challenges:
- Delayed Payments: Clients often take 30, 60, or even 90 days to pay invoices, while you have to pay workers and suppliers immediately.
- Upfront Costs: You’re shelling out money for materials before you ever see a dollar from the job.
- Untracked Spending: Without a clear cash flow system, money leaks into unexpected expenses and inefficiencies.
- Debt repayments: The cash boost you recieved from borrowing money instantly starts turning into a cash defficit when you start making loan repaments which eat into your cash reserves.
- Tax Surprises: When tax time comes, many business owners realise they don’t have enough cash set aside to cover their obligations.
A Smarter Way to Manage Your Cash Flow
This is where a Fractional CFO steps in. Instead of just telling you that you made a profit, a Fractional CFO helps you take control of your cash flow with a system that works for your business.
Meet Simon, a Fractional CFO specialising in construction and trade businesses. When Jason reached out, he didn’t just hand him a financial report—she helped him see where his money was going and create a plan to keep more of it in his bank account.
He introduced him to Cash Flow Banking, a simple yet powerful method to ensure that he always had the cash he needed, when he needed it. Here’s how it worked:
- Segmenting Cash: Instead of keeping everything in one account, Jason set up dedicated cash buckets for taxes, payroll, owners income, materials, and profit.
- Predictable Cash Flow Management: By having budgets set by the amounts in each bank account and not spending money for anying outside the budget of that account, unneccessary spending is reigned in, there is money available to pay the things you have to and you can easily start to track where money is leaking from the business.
- Invoice Acceleration: Simon helped Jason implement a smarter invoicing system that got him paid faster and improved his payment terms with suppliers.
- Expense Auditing: They found hidden inefficiencies, like overpriced supplier contracts and unnecessary expenses, saving him thousands each month.
Within three months, Jason was no longer panicking over payroll or scrambling for last-minute loans. He had cash reserves, predictable revenue, and, most importantly, peace of mind.
You Don’t Have a Revenue Problem—You Have a Cash Flow Problem
If your construction business is making a profit but you’re always running out of cash, you don’t need more work—you need a better cash flow strategy.
A Fractional CFO can help you:
- Pinpoint where your cash is leaking
- Create a simple system to manage cash flow without extra headaches
- Make sure you always have enough cash to cover expenses, pay yourself, and grow your business
You’ve worked too hard to be stuck in a cycle of financial stress. Take control of your cash flow and start running your business with confidence.
Ready to Stop the Cash Flow Rollercoaster?
Let’s talk. Schedule a free consultation with a Fractional CFO today and start keeping more of the money you earn.
