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

Ready to ditch the whiteboard and spreadsheets? See how FieldPulse helps home service companies simplify scheduling, dispatching, invoicing, and more. Book a free demo: https://landing.fieldpulse.com/owned_and_operated

Comfort Connect

Turn one installation into years of repeat business with Comfort Connect. Give homeowners flexible payment options, stay connected after the job, and create new recurring revenue opportunities. Learn more: https://bit.ly/4wGXqSX

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Connect
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John Wilson
https://www.linkedin.com/in/johnbwilson1/

Tyler Martin
Profit & Grit
https://profitandgrit.com/

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John Wilson, CEO of Wilson Companies
Jack Carr, CEO of Rapid HVAC

📌 Disclaimer: Some links may include UTM parameters or affiliate relationships, meaning we may earn a commission if you make a purchase. Episodes may feature sponsors, but all opinions expressed are our own.

Why Profitable Home Service Companies Keep Running Out of Cash

Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast

Why Profitable Home Service Companies Keep Running Out of Cash