Forget fancy metrics. Here’s the one that matters most:

How many days of cash do you have on hand?

If work stopped tomorrow, how long could your business survive?

Knowing your cash-on-hand runway helps you plan for slow seasons, absorb surprises, and sleep at night. Ideally, you want 30–60 days of fixed costs covered — including payroll, rent, and overhead.

If you’re below that, you’re flying too close to the sun. If you’re above that, you have room to invest wisely.

Start tracking it monthly — and use it as your early warning system.

Real World Mistake & Lesson:

A commercial GC had great sales but poor reserves. When a client delayed payment by 45 days, he had to borrow just to make payroll. We helped him build a buffer — and he never lost sleep over cash again.

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