Where Does the Money Go? Understanding Cash Flow Like a Business Owner, Not a Banker
A few days ago, I was in the kitchen when my youngest dumped an entire bag of marbles on the floor.
Chaos.
They scattered in every direction—some zipped into the living room, a few stopped near the dishwasher, and at least three disappeared under the fridge forever.
I just stood there watching, and all I could think was:
This is exactly what cash flow feels like in a business.
👉 You bring in revenue.
👉 You send out invoices.
👉 You even hit your sales targets.
But then you check your bank balance and think: Wait… where did the money actually go?
If You’ve Ever Asked, “We’re Making Money—So Why Doesn’t It Feel Like It?”
You’re not alone. I’ve worked with countless business owners who know they’re profitable but still feel the monthly squeeze.
They tell me things like:
- “We had our best sales quarter ever, but cash is tight.”
- “I feel like I’m always playing catch-up.”
- “It’s like the money’s leaking out somewhere—I just don’t know where.”
Here’s what’s really happening:
Cash doesn’t sit still. It moves.
It flows through your business—like water through a system of pipes. And if you’re not tracking it, it’s easy to miss where it’s going, where it’s backing up, or where it’s leaking out entirely.
How Cash Actually Moves Through a Business
Let’s break it down simply:
- Cash comes in
From client payments, sales, financing—this is your inflow. - Cash goes out
To pay team members, cover rent, subscriptions, contractors, taxes—this is your outflow. - What’s left is your net cash flow
And that’s the real indicator of financial health.
But here’s the curveball:
âś… You can be profitable and still run out of cash.
❌ You can grow sales and still feel broke.
Why? Because profit is an accounting concept. Cash flow is a survival concept.
Profit tells you how much you made on paper.
Cash flow tells you how much you can actually spend.
A Real-World Metaphor: The Bathtub
Think of your business like a bathtub.
Revenue comes in like water filling the tub. But if the drain is wide open—or worse, your tub has holes—you’ll be left with an empty tub no matter how much water you pour in.
A healthy business doesn’t just need water coming in. It needs a system that holds, directs, and controls the flow.
Want to Get a Handle on Cash Flow? Start Here:
These 3 simple questions will help you take the wheel:
- How fast is money coming in?
Are clients paying quickly—or are invoices sitting unpaid for 30+ days? - Where is money leaking out?
Are costs creeping up in subscriptions, payroll, or tools that no longer serve your growth? - Are you mixing different types of cash flow?
It’s common to use cash from one project or product to cover losses in another. Is that happening in your business?
If you’re feeling like your business is working on the outside but financially messy on the inside, it’s time to take a deeper look at your cash flow.
You don’t need a CFO title or a finance degree to get clarity—you just need the right lens.
And that’s what I’m here to help with.
Want to Finally Understand Where Your Money’s Going? 💡
If cash flow still feels like a mystery, I’d love to invite you to my upcoming masterclass:
Cash Flow Made Simple: Mastering the Lifeblood of Your Business
We’ll break down:
- How cash actually moves through your business
- The key drivers behind cash shortages
- Real-world examples from service, retail, and construction businesses
- Simple, practical strategies to improve your cash flow—fast
No jargon. No overwhelm. Just clarity, confidence, and control.
🗓️ May 22 at 1pm EST – Register here
Join us and finally feel on top of your numbers—not behind them.
Hope to see you there!
