0416: If My Construction Business Is Making A Profit Where Is The Cash

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 416, And It's About If My Construction Business Is Making A Profit Where Is The Cash</strong></span></h1> <div>Some construction business owners find themselves in the difficult position of running a business that appears to be profitable but still having no money in the bank. It's a critical situation to address. After all, a lack of adequate cash flow is one of the leading causes of small construction business failure. </div> <div> </div> <div>Here are three reasons why profitable construction businesses have little money in the bank and what company owners can do to handle these tricky situations. </div> <div> <div> <p style="font-weight: bold;"><span style="color: #0600ff;">1. Using business money for personal reasons</span></p> <p><span data-preserver-spaces="true">Owners may be using their business bank account as a personal bank account, withdrawing the money as they see fit. Of course, business owners need to earn a living. Instead of using the business account as a personal account, you should give yourself a wage and transfer that from the business account to your personal account at set intervals. If your personal money runs out, you can't go back to the business account for more money until your next withdrawal date. </span></p> <p><span data-preserver-spaces="true">Regular use of the business account, even for relatively small amounts, adds up and can have a drastic effect on your business's cash flow. </span></p> <p style="font-weight: bold;"><span style= "color: #0600ff;"> 2. Not collecting payments</span></p> <p><span data-preserver-spaces="true">Construction businesses need to make money, and they do so when customers pay their bills. Not sending out invoices promptly, not following up when customers fail to pay, and not conducting adequate credit checks on customers all put cash flow in jeopardy. </span></p> <p><span data-preserver-spaces="true">It's best for contractors like you to send out inv