“Just sell more.” That’s the advice most contractors hear when cash is tight. And yes, sales matter — a lot. But what if I told you more sales can actually make things worse?

It’s true. If your jobs are underpriced, your billing is slow, and your payment terms are sloppy… more sales just dig a deeper hole.

Cash flow is about timing. You need cash in the bank to pay your people, buy materials, and cover overhead. But if the money isn’t coming in on time — or you’re fronting too many job costs — even strong sales can bankrupt you.

You’ve heard the phrase: “Sales are vanity, profit is sanity, cash is king.” In construction, cash is not just king — it’s the air you breathe.

I coached a contractor who doubled his revenue in 12 months — from $900K to $1.8M. But guess what? His cash got worse. Why? Because he wasn’t billing promptly, his customers were slow payers, and he was financing job costs out of pocket. He was stuck in a growth trap — more jobs, more cash stress. Once we implemented progress billing, enforced deposits, and tightened terms, his cash flow turned around. And he finally had something to show for all that extra work.

If sales are up but cash is tight, don’t wait for the next job to fix 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