Cash Flow vs Profit (Explained Simply)
Why is your construction company profitable on paper but broke in real life? In this episode of The Owner’s Financial Crash Course, we break down one of the most painful truths in the industry: profit isn’t cash. Whether you're a construction subcontractor, general contractor, or growing trades business, this 6-minute video will help you understand: ✅ The difference between profit vs. cash flow ✅ Why your P&L (profit and loss statement) doesn’t tell the whole story ✅ How poor construction cash flow management puts good jobs underwater ✅ What happens when you bill too late and pay too early ✅ Why construction businesses go broke with a full backlog You’ll see a real-world job timeline that shows how subcontractors end up floating costs for months before getting paid and why construction cash flow forecasting is critical if you want to grow without running out of money.