Cash flow basics that keep the doors open
Profit on paper is a story. Cash in the account is the only real-time signal.
Track 13 weeks ahead
A simple 13-week cash forecast, money coming in, money going out, week by week, is the single most useful spreadsheet most owners don't have.
AR is where cash hides
For shops doing invoiced work, days-to-payment matters more than the invoice total. Tighten terms, deposit on signing, and chase past 30 days like the business depends on it. Because it does.
Keep a 'breathing room' number
Most owners aim for 60-90 days of operating expenses in reserve. Below 30 days you're running on fumes. The slow seasons that hit unprepared shops don't hit prepared ones the same way.
Take your version of this question further
This is one operator-tested angle on the question. Your shop, your size, your trade, and your team change the answer. Ask your specific version inside Ask a Shop Owner to get a response grounded in how owners like you actually handled it.