051. $1 Million in Revenue and Still Broke? Where the Money Actually Goes in a Contractor Business

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051. $1 Million in Revenue and Still Broke? Where the Money Actually Goes in a Contractor Business

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You hit $1 million in revenue. The crews are busy. The trucks are moving. Jobs are getting completed. So why does the bank account still feel empty? In this episode of Profit Isn’t an Accident, we break down where the money actually goes inside a contractor business and why strong revenue does not automatically mean strong cash flow. We walk through a real-world $1 million contractor example and follow the money through direct job costs, gross profit, overhead, debt payments, taxes, accounts receivable, retainage, and owner compensation. You’ll also learn why a business can show a profit on paper and still feel cash-starved, how growth can actually make the problem worse, and why job costing and collections matter just as much as sales. This episode is for the contractor who is doing real revenue, staying busy, and still wondering where the money went. Your homework: Pull your year-to-date numbers and look at your revenue, gross profit, gross margin, overhead, accounts receivable, cash balance, monthly debt payments, and tax reserves. Then review your last five completed jobs and compare what you expected to make against what you actually made. If you’re tired of doing strong revenue and still feeling like cash is always tight, book a free Profit Acceleration Session with Denali Edge Consulting: www.denaliedgeconsulting.com/pas Own your business. Live your life.

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