According to the IRS, two-thirds of all businesses fail in their first five years. One of the major reasons this happens is not from a lack of business, but from a lack of cash.
Here’s a math question for you: how many jobs can you take on and complete without any payment from the insured or their representative? The answer is pretty simple…until you run out of your own money. The only one that really cares about cash flow is the owner. If a sub isn’t paid on time, oh well, next week. If a vendor isn’t paid on time, oh well, next month. If an employee isn’t paid on time….now we have a serious problem, because they might not stay around for the next payroll. Which means you cannot get the work done to earn the money you need to operate on and pay your debts.