Your jobs are profitable, your crews are busy, but your bank account tells a different story. That disconnect is cash flow, and it’s the silent killer of otherwise healthy contracting businesses. In this article, construction finance expert Steve Coughran breaks down where contractors get tripped up and shares practical ways to tighten billing, manage outflows, and build a truly cash-confident business.

At Knowify, we see it every day: trade contractors land great jobs, run tight operations, and post profits, yet still find themselves scrambling for cash. It’s a tough spot, and you’re not alone. According to the U.S. Bank, 82% of business failures are due to poor cash flow management. That’s not just a number. It’s a reality for too many hardworking contractors.

As Steve Coughran, construction profitability expert and founder of Coltivar, shared on The Cost Codes Show, “When I was running my landscape business, I was just 16 years old, starting out of my sister’s garage. As the business grew, I grew with it. Before long we were doing several million dollars a year and I was still only in my early twenties.

I had no financial background. Operationally, I knew how to design and build projects, but I didn’t know how to read an income statement. I could see our revenue and I could see our profit, but everything in between? No clue. If you had asked me how to influence gross margin, I would have either made something up or admitted I didn’t know. If you’d asked me what cash flow was, I would’ve said, “Isn’t that just the balance in my bank account?” So there I was, running this business on sheer grit and heroics, and I made a ton of mistakes along the way.”

Profit is important. But cash flow keeps your doors open, your team paid, and your projects moving. Let’s break down where contractors get tripped up, and how you can master cash flow with the right strategies and technology.

Keep reading this article on knowify.com

Explore related articles you won’t want to miss:

Building a financial strategy review habit: The power of monthly check-ins

How to build effective project management processes for subcontractors