A $1.5 Million Painting Company Can Still Run Out Of Money

Send us Fan MailWe break down why a painting business can be busy, profitable on paper, and still nearly broke, using a real case of $1.5M in revenue with only $7K in cash. We lay out a simple order of operations that stabilizes cash flow before you ever consider spending more on ads. • spotting the three primary constraints: demand, labor, and money behavior • why profit is not cash and busy is not healthy • the danger zone of having under one month of overhead in the bank • labor overruns as the hidden cause of weak gross profit and cash squeeze • a rule of thumb for employee labor costs near one-third of job price • deposits, progress payments, and receivables as cash flow levers • stopping owner draws from choking working capital • deciding on ad spend only after cash systems and labor systems are stable If you get value from this type of information, grab a free copy of my book, Profitable Painter. Click the link in the description to grab a free copy, just cover the shipping.This episode was originally recorded as a video for YouTube.If you hear me say things like “in this video” or reference visuals, don’t worry — the content still works perfectly in audio form.And if you ever want to watch the video version, you can find it on the Profitable Painter YouTube channel.https://www.youtube.com/@BookkeepingForPainters