5 Signs Your Business Is Bleeding Cash
Running a business isn’t for the faint of heart.
Are you working hard but still coming up short on cash?
If so, your business might be showing symptoms of a deeper financial issue.
Let’s break down five key warning signs and explore how you can fix them before they drain your hard-earned money.
1. Are You Constantly Chasing Payments?
Are you spending more time following up on unpaid invoices than actually running your business?
If you’re constantly chasing clients to pay you, you’ve got a cash flow problem. Late invoices aren’t just annoying—they disrupt your entire operation. Without steady cash flow, it’s tough to pay your crew, buy materials, or invest in new equipment.
How to Fix It:
Set clear payment terms upfront. Think net-15 instead of net-30.
Use tools like QuickBooks or invoicing apps to automate reminders.
Don’t be afraid to enforce late fees. You’re running a business, not a charity.
2. Do You Ever Feel Like Money Disappears Without Explanation?
Do you know exactly where your money is going? If not, there’s a good chance you’re overspending somewhere—on supplies, tools, subscriptions, or even fuel for your fleet.
How to Fix It:
Track every dollar with budgeting software or even a simple spreadsheet.
Review your expenses monthly to cut out what’s unnecessary.
Negotiate with suppliers for better rates, especially if you’re a repeat customer.
3. Are You Winning Every Job But Barely Breaking Even?
You’re landing every bid you submit—sounds great, right? Not necessarily.
If you’re underpricing your work to stay competitive, you’re leaving money on the table and could even be operating at a loss.
How to Fix It:
Factor in your overhead, materials, labor, and a profit margin when pricing jobs.
Don’t be afraid to charge what you’re worth. The right clients will pay for quality work.
Track each job’s profitability to ensure every project is worth your time.
4. Does Your Crew’s Work Seem Inefficient?
If your team’s spending more time standing around than working, it’s costing you. Wasted time is wasted money, plain and simple.
How to Fix It:
Invest in training to improve skills and workflows.
Use scheduling and project management tools to keep everyone on track.
Hold regular team meetings to identify and address bottlenecks.
5. Are You Avoiding the Numbers?
Do you know your break-even point? Your profit margins? Exactly where every penny is going?
Avoiding your financials might feel easier, but it’s leaving you in the dark.
How to Fix It:
Set up regular financial check-ins, whether it’s weekly or monthly.
Hire a bookkeeper or consultant if the numbers aren’t your thing.
Use financial reports to make data-driven decisions instead of guessing.
What’s Next?
If you answered “yes” to any of these questions, it’s time to take action. These aren’t just small issues—they’re red flags that could be costing you big money. The good news? Each one has a solution. Start by addressing the areas that resonate most with your business.
Need help figuring it all out? Let’s talk. I can help you diagnose the issues, set up systems to fix them, and get your business running like the well-oiled machine it’s meant to be.
In your corner,
kaela
