🧠 The $100K Mistake You Won’t See on Your P&L

Welcome back to the 104th edition of Nord Media

You’re landing new clients. Retainers are growing. Margins look solid on paper.

Still, something feels off.

Cash is tighter than it should be. You’re juggling invoices, delaying expenses, and watching your bank balance with more anxiety than confidence. 

Payroll is coming up fast, and the payments you’re owed are crawling in slowly.

This is the hidden risk most service businesses overlook. 

Profitability isn’t the issue. It’s timing. When there’s a delay between delivering work and collecting cash, even a growing agency can spiral into a crunch.

And as the business scales, the stakes get higher. More clients bring more delivery, more overhead, and more financial strain before the revenue ever hits your account.

Here’s what we’re breaking down in this email:

• Why agencies that are profitable on paper still run into cash flow problems

• How to restructure client payment terms to get paid 14+ days earlier

• The three hidden cash flow levers that buy breathing room without slowing growth

• A forecasting framework to predict shortfalls 60 days in advance

Let’s dive in.

Profit ≠ Cash: Why Payment Timing Can Sink a Growing Agency

You can hit every revenue target and still struggle to make payroll.

That’s the reality when your payment terms lag behind your delivery timelines. Work gets done, value gets delivered, but the cash doesn’t land in your account fast enough to keep up with growth.

Here’s how to fix it.

Step 1: Frontload Payments Where You Can

Don’t wait to invoice until after the work is done. 

For project-based scopes, switch to 50% upfront, 50% on delivery, or even 100% upfront if your positioning allows.

For retainer clients, bill at the beginning of each month, not the end. You’re reserving time and resources, not just selling hours.

Step 2: Shorten Your Net Terms

If you’re still offering Net 30 or longer, tighten it up. Moving to Net 14 or Net 7 can reclaim weeks of float and give you faster access to working capital.

If clients push back, anchor the change in delivery standards:

“We’ve adjusted terms to better align with project pacing and resourcing. It ensures we can maintain high quality and quick turnarounds.”

Step 3: Automate Collection

Use tools like ACH autopay or credit card billing to process payments automatically. 

This cuts down on admin time and removes human error or forgetfulness from the equation.

Step 4: Build in Late Payment Consequences

Even if you don’t enforce them aggressively, stating a 1–1.5% late fee per month shows that timely payment is the expectation.

This combination can pull cash into your business 14 to 30 days faster, which compounds over time, especially as your team and expenses grow.

The 3 Hidden Cash Flow Levers

Fixing cash flow doesn’t require cutting growth. Often, the real solution is tightening the operational gaps that quietly bleed cash.

Here’s how to do it:

1. Rescope Low-Margin Work

• Identify clients or retainers with consistently low delivery margin (under 50–60%).

• Audit time, scope, and resources used vs. revenue earned.

• Restructure the scope, raise the fee, or exit the engagement entirely.

• Focus your team on work that delivers margin and momentum.

2. Align Contractor Payments with Cash Intake

• If you're billing clients monthly but paying contractors weekly, you're covering the gap.

• Shift contractor terms to biweekly or Net 15 where possible.

• Use deliverable-based pricing instead of hourly to reduce overages.

• This protects against out-of-sync cash cycles and runaway project costs.

3. Use a Rolling Cash Forecast

• Build a 60-day rolling forecast that maps incoming receivables against expenses.

• Update it weekly with new data to stay ahead of shortfalls.

• Use it to make real-time decisions around hiring, spend, and collections.

• The goal is visibility, so you can act before the pressure hits.

These small shifts won’t grab headlines, but they create the kind of operational discipline that gives your business breathing room while keeping growth intact.

How to Spot a Cash Crunch Before It Hits Your Bank Account

Cash flow issues don’t explode, they creep. Without visibility, they stay hidden until it’s too late to act. A simple 60-day forecasting rhythm gives you the clarity to make adjustments early.

Here’s how to build it:

• Create a 60-day rolling forecast that compares expected receivables with all upcoming expenses.

• Update it weekly using actual payment data, not just invoice due dates.

• Flag negative balances in advance and build contingency plans around them.

• Set a low-cash alert (like 1.25x payroll) to trigger proactive steps before the pressure builds.

Build enough visibility to avoid last-minute decisions that kill growth or damage trust.

Final Thoughts

A profitable agency isn’t always a healthy one.

When revenue outpaces cash, you’re stuck growing on shaky ground, juggling payments, delaying decisions, and reacting to problems that could’ve been prevented.

Getting ahead of it doesn’t require a finance degree. It just requires cleaner systems, better timing, and a weekly rhythm that keeps your eyes on what actually matters.

Small changes to payment terms, contractor alignment, and forecasting can create just enough space to turn constant stress into confident scale.

Want to learn more? Connect with me on social 👇
LinkedIn • Instagram • Twitter 

Thank you for reading! I appreciate you.

Sincerely,
Kody

Disclaimer: Special thanks to eCom Email Certified & Superfiliate for sponsoring today’s newsletter.