11/06/2026
I had a client who ran a concrete cutting business.
He checked his bank account one day and saw $100,000 sitting there.
So he bought a new $50,000 piece of cutting equipment. For cash.
Eight weeks later he couldn't make payroll.
At the time it felt like the right call to him.
The money was there and the equipment would help him grow.
But here's what he didn't see.
That $100,000 wasn't his to spend.
It was sitting in the account because invoices had been paid in advance.
But the costs of the next eight weeks β wages, materials, loan repayments, overheads etc hadn't gone out yet.
The equipment didn't cause the problem.
The decision did.
Because the decision was based on a bank balance - not a cashflow forecast.
Here's the principle I taught him that changed things for him:
Fund an asset over the life of the asset.
A piece of equipment that lasts five years should be financed over five years.
Not paid for in cash from your operating account.
Because that cash isn't yours to spend.
It belongs to the next eight weeks of your business.
Save this - because this principle alone could save you from one of the most common and costly cash mistakes in business. π