Contractors Paradox: Too Much Debt v. Not Enough Capital
I see this every day in my practice. Too much debt, or not enough cash to fund growth. Which one sounds like you?
For trade contractors, capital is the lifeblood of growth—but it shouldn’t come at the expense of your health or paycheck. Growing revenue alone isn’t the answer. In fact, it can make your problems worse if you’re underfunded. The right kind of debt can be your friend, providing the resources to scale.
What's your $ number?
In other words, if you could pick an amount to put your business on better financial footing, what would it be? Start with the 10% rule. You should have 10% of annual revenue in available cash as a cushion to fund growth, cover weekly payroll, and carry operating expenses during the 60-90 day cycle it takes to collect cash. For a $3 million business, that's $300K. I call this "good debt."
But taking on the wrong type of debt—like predatory MCA loans or maxing out credit cards to cover suppliers and payroll—can bring even the most promising business to its knees. Sometimes, it only takes 12 months to push a growing business over the edge.
Are You Experiencing the Warning Signs?
High stress
Sleepless nights
Payroll panic
Pyramiding debt
Inconsistent cash flow
What’s the Solution?
The key lies in identifying the root cause of these symptoms and working with a financial specialist to develop a tailored plan.
If any of this resonates, it’s time to take action. Start with my Business Cash Flow & Health Assessment. This assessment is amazing and is the first step in turning things around for your contracting business.
Why? Because it only takes 60 seconds to start making real changes.
This assessment will help you:
✅ Pinpoint cash flow challenges
✅ Evaluate your current debt strategy
✅ Create a roadmap to financial stability
Ready to Begin?
👉 Click here: [LINK]
This tool is your first step toward gaining control of your business finances. Don’t wait until the stress spirals out of control—start your path to clarity and stability today.
Let’s make your business thrive, not just survive.
📩 Reach out if you're ready to talk and have a great weekend!
Patrick Shurney, MBA
Founder, 3P Consulting
📞 443.539.6276
🌐 www.3pcllc.com
p.s. I'm hosting a live workshop on LinkedIn entitled Investor-Ready: How to Make Your Business Attractive to Investors and Bankers on January 7th at 10am EST. Check out the LINK Here to register. It's free to you, but the lessons took me a lifetime to earn.
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About Me:
As a veteran in financial coaching with over 30 years of corporate banking experience, my mission is to empower small business owners like you to become numbers confident, optimize cash flow, leverage debt, and pay yourself competitively.
Ready for More?
Here’s how I can help you:
1. Profit Accelerator Program: Master your business numbers in just 30 days, uncovering hidden profits of $25K-$75K+ over the next 3-12 months.
2. Loan Consulting: Need the best rates and terms on your next loan? With 30+ years of banking experience, I’ll make sure you get a deal that works for you.
3. Profit Accelerator Digital Course: Become confident with your numbers, boost cash flow, and learn to pay yourself first in just two hours. This course is designed for busy professionals who want immediate results. ($197)
Ready to take your financial strategy to the next level? Let’s connect and make sure you’re running a thriving business while paying yourself what you’re worth.
