Story Time: A Roofer's Journey Part 4, Cash Flow is Looking Up

Cash Flow is Looking Up. Now what?

For a while now, I’ve been building the case for why every roofing and restoration contractor needs SquareDash to help solve the cash flow crisis. So let’s assume I won you over and you are now a happy and profitable SquareDash customer that is sleeping like a baby at night. (And if not, holler!)

Using our platform to get paid in 1-2 days, and not chasing checks all over town, are great steps for your business. But I’m willing to bet you still have work to do when it comes to managing the financial side of your operations. And because I care about your business just as much after the sale as I did before, today we’re going to talk about it.

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So. Where does all the money go?

If you’re like a lot of business owners, you look at they money flowing through your business with a pretty simple formula:

Income – Expenses = Profit!

In other words, profit is seen as what’s left over at the end of the month. Some months it might be a lot of cash, and others … not so much. This makes it equally hard for you to plan for your business finances and your personal financial situation, too.

The other trap business owners fall into is aggressively reinvesting profits back into the business. Now, I’m not saying that investing in your business is always a bad idea. Smart sales and marketing efforts, for example, can be a very wise investment.

Too often, though, that cash gets reinvested in, well, questionable ways. That $100,000 custom-wrapped truck, 26-foot fishing boat, or 5-day “planning retreat” in Cabo San Lucas may seem like an attractive way to use your cash—and stick it to the tax man. (High five!) But let me tell you from experience … you’re playing a dangerous game. Because when too much of your cash is tied up in the trappings of success, one or two slow months can spell disaster for your business.

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Putting profit first.

Here’s the plan. We’re going to flip the script and start taking profit first, not last. There are a lot of reasons to do this, including the fact that moving profit out of your day-to-day cash flow accounts limits the resources you have available, and forces you to spend your money more efficiently. There’s way more to this philosophy, and I highly recommend that you read the book Profit First by Mike Michalowicz.

If reading’s not your thing, I got you. I made a video that summarizes the “Profit First” approach in less than 15 minutes. Check it out.

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There’s a lot more where that came from.

I love nerding out about business and finance. So feel free to  email me with questions. And, connect with me on LinkedIn, and follow us on Facebook, Instagram, and YouTube for more ways to run your business better.  

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About SquareDash

SquareDash is a veteran-owned financial services company based in Dallas, Texas. Our proprietary fintech platform is solving the cash flow crisis for contractors around the U.S. who deal with insurance claims. Learn more at SquareDash.com.