Your home service business can be profitable on paper and still run out of cash.
John Wilson sits down with Tyler Martin of Profit & Grit to break down where cash actually goes as a home service company grows and why strong EBITDA doesn’t always translate to money in the bank.
They cover the biggest cash drains, including trucks, inventory, accounts receivable, debt payments, and hiring ahead of demand. They also break down how much cash to keep in reserve, what owners should be watching every week, and how a 13-week cash flow forecast can help you stay ahead of a crunch.
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In This Episode
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• Why profitable businesses still run out of cash
• Profit vs. actual free cash flow
• How growth eats cash
• The hidden impact of AR, inventory, trucks, and debt
• How much cash to keep in reserve
• What financial numbers to review every week
• Building a 13-week cash flow forecast
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Sponsors
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Service Scalers
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FieldPulse
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Comfort Connect
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Connect
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John Wilson
https://www.linkedin.com/in/johnbwilson1/
Tyler Martin
Profit & Grit
https://profitandgrit.com/
RESOURCE: Understanding Your Cash Flow Statement
https://profitandgrit.com/quickbooks-cash-flow-statement-home-service/
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John Wilson, CEO of Wilson Companies
Jack Carr, CEO of Rapid HVAC
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