“Business is booming!”

That’s usually something to celebrate — but when contractors grow too fast without the right foundation, that boom can quickly turn into a bust.

Most contractors think the biggest threat to their business is not enough sales. But I’ve seen just as many companies get into trouble from too much growth — too fast. And when that happens without strong cash flow systems in place, it can be fatal.

The thing is, every new job you win comes with new expenses — before you ever see a dime. You’ve got to cover materials, labor, equipment, permits, project management, and maybe even upfront deposits for subs. If your billing is slow, retainage is high, or receivables are dragging, you’ll run out of cash long before you run out of work.

I helped a concrete contractor who had doubled his revenue in just 18 months — from $1.2 million to $2.4 million. Sounds like a win, right? But his profit was disappearing, and his cash flow was underwater. Why? Because he was starting big jobs with no cash buffer, waiting 45–60 days to get paid, and trying to fund the entire thing from his operating account. On one project, he fronted over $75,000 before receiving a single payment. That forced him to delay payroll, miss payments to key vendors, and even turn down new work.

We had to press pause. We restructured his billing model, implemented progress invoicing, required 30% deposits on all new work, and built a 13-week cash forecast to manage the pipeline. Once his systems caught up with his growth, he could expand without choking his cash.

The bottom line? Revenue without systems is just chaos in disguise.

Thinking about growing your business this year? Let’s make sure your cash flow can handle it.

Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com