In this solo episode, Net Profit CFO Ryan Kimler breaks down the five most common mistakes business owners make when it comes to cash flow—and why “more money in the bank” doesn’t automatically mean your business is healthy. Drawing from real client experiences, Ryan explains the difference between profit and cash, how to avoid “growing broke,” and what it really takes to design a cash flow model that supports long-term growth. You’ll walk away with practical tools to forecast your cash, protect your margins, and make smarter decisions before problems show up in your bank account.
In this episode, Ryan discusses:
- The dangerous misconception that profit and cash are the same thing
- Why relying on your bank balance as a dashboard leads to bad decisions
- How your operating cycle (from signing a client to collecting payment) impacts cash
- The role of pricing, payroll, and hiring timing in creating cash flow stress
- Why you must proactively forecast future cash needs—especially when you’re growing
Key Takeaways:
- It’s possible to look profitable on paper and still be broke. The timing difference between when revenue is booked and when cash is collected can create serious pressure if you’re not forecasting actual inflows and outflows.
- Running the business off your bank balance is like flying a plane with no instruments. Pending payroll, quarterly tax payments, annual insurance, and subscription renewals can all be “invisible” cash obligations that haven’t left the account yet but absolutely will.
- Your operating cycle is a core part of your strategy, not just an accounting detail. When you understand how long it takes from signing a client to collecting full payment, you can shorten that cycle through deposits, faster billing, automated collections, better payment terms, late fees, or prepayment incentives.
- Cash flow lives or dies in your model: pricing, labor costs, overhead, and hiring timing all interact. Building and regularly revisiting a simple financial model—“If we charge X, pay people Y, and add headcount at Z point, do we still generate enough cash?”—gives you clarity before you scale.
- Growth requires cash, and you can absolutely “grow broke” if your profit margins quietly erode as revenue climbs.
“Cash flow is not a bookkeeping or accounting, or a tax problem. It is really a strategy problem.” — Ryan Kimler
Schedule your free 1:1 Profit Breakthrough Session with Ryan here: https://go.oncehub.com/profit
Connect with Ryan Kimler:
Net Profit CFO Home Page:www.netprofitcfo.com
Email:ryan@netprofitcfo.com
Facebook:www.facebook.com/rkimler
LinkedIn:www.linkedin.com/in/ryankfinancialclarityllc/
LinkedIn NPC Company:https://www.linkedin.com/company/netprofitcfo/
LinkedIn FC Company:https://www.linkedin.com/company/financial-clarity-llc/
Show notes by Podcastologist Andy Santiago
Audio production byTurnkey Podcast Productions. You're the expert. Your podcast will prove it.
