Business owners often feel frustrated when their P&L shows strong profits but there’s little cash in the bank. This disconnect isn’t incompetence or unfairness – it’s a misunderstanding of how cash really flows through a growing business. In this fifth summer series episode, Andres Zylberberg, Richard Peake and I discuss how profit and cash are not the same. 

Growth itself consumes cash through working capital tied up in inventory, labour, receivables, and timing differences. Relying only on the P&L creates a false sense of security, a “mirage” of sustainability. The real insight comes from understanding cashflow statements, balance sheets, and the cash conversion cycle. With clear management reporting and a customer-funded business model, owners can see where cash is absorbed, regain control, and make smarter decisions that turn paper profits into real, usable cash. 

Takeaways 
Profit on paper does not guarantee cash sitting safely in your bank. 
Revenue growth often consumes cash faster than most business owners realise. 
Relying only on the P&L creates a dangerous illusion of financial success. 
Cashflow statements reveal where profitable businesses actually lose usable cash. 
Working capital quietly bridges the gap between profit figures and cash. 
Fast growth without cash discipline can turn businesses into cash vacuums. 
Shortening the cash conversion cycle releases trapped cash for growth. 
Clear management reporting gives leaders control, confidence, and better decisions. 

Watch the episode on YouTube: https://www.youtube.com/@TheEvolutionPartners 

Newsletter – each week I share interesting insights, articles and ideas you can use. Join other leaders and subscribe to The Evolution Partners newsletter  https://evolutionpartners.com.au/subscribe/ 

Books – Learn more about our books https://evolutionpartners.com.au/books/ 


Made to Thrive: The practical, prescriptive guide on how to be a great CEO 
Onboarded: How to bring new hires to the points where they are more effective faster. A business case for leaders on why you should commit to an effective onboarded process. 
Onboarded for Managers: Helping managers bring new hires to the point where they are more effective faster. 
Bigger isn’t Better, Better is Better: Avoiding the pressure of endless growth to build a better business (and better life) 

Follow me: 
on https://au.linkedin.com/in/bradleygiles
on https://twitter.com/Evolution_Perth 

Enjoying the show? Leave a review 

Business owners often feel frustrated when their P&amp;L shows strong profits but there&rsquo;s little cash in the bank. This disconnect isn&rsquo;t incompetence or unfairness &ndash; it&rsquo;s a misunderstanding of how cash really flows through a growing business. In this fifth summer series episode, Andres Zylberberg, Richard Peake and I discuss how profit and cash are not the same.&nbsp;
Growth itself consumes cash through working capital tied up in inventory, labour, receivables, and timing differences. Relying only on the P&amp;L creates a false sense of security, a &ldquo;mirage&rdquo; of sustainability. The real insight comes from understanding cashflow statements, balance sheets, and the cash conversion cycle. With clear management reporting and a customer-funded business model, owners can see where cash is absorbed, regain control, and make smarter decisions that turn paper profits into real, usable cash.&nbsp;
Takeaways&nbsp;
<ul>
<li>Profit on paper does not guarantee cash sitting safely in your bank.&nbsp;</li>
<li>Revenue growth often consumes cash faster than most business owners realise.&nbsp;</li>
<li>Relying only on the P&amp;L creates a dangerous illusion of financial success.&nbsp;</li>
<li>Cashflow statements reveal where profitable businesses actually lose usable cash.&nbsp;</li>
<li>Working capital quietly bridges the gap between profit figures and cash.&nbsp;</li>
<li>Fast growth without cash discipline can turn businesses into cash vacuums.&nbsp;</li>
<li>Shortening the cash conversion cycle releases trapped cash for growth.&nbsp;</li>
<li>Clear management reporting gives leaders control, confidence, and better decisions.&nbsp;</li>
</ul>
Watch the episode on YouTube: <a href="https://www.youtube.com/@TheEvolutionPartners">https://www.youtube.com/@TheEvolutionPartners</a>&nbsp;
Newsletter &ndash; each week I share interesting insights, articles and ideas you can use. Join other leaders and subscribe to The Evolution Partners newsletter&nbsp; <a href="https://evolutionpartners.com.au/subscribe/">https://evolutionpartners.com.au/subscribe/</a>&nbsp;
Books &ndash; Learn more about our books&nbsp;<a href="https://evolutionpartners.com.au/books/">https://evolutionpartners.com.au/books/</a>&nbsp;
<a href="https://evolutionpartners.com.au/made-to-thrive/"> Made to Thrive:</a> The practical, prescriptive guide on how to be a great CEO <a href="https://evolutionpartners.com.au/onboarded/">Onboarded:&nbsp;</a>How to bring new hires to the points where they are more effective faster. A business case for leaders on why you should commit to an effective onboarded process.&nbsp; <a href="https://evolutionpartners.com.au/onboarded-for-managers-book/">Onboarded for Managers:</a> Helping managers bring new hires to the point where they are more effective faster.&nbsp; <a href="https://evolutionpartners.com.au/bigger-isnt-better/">Bigger isn&rsquo;t Better, Better is Better:</a> Avoiding the pressure of endless growth to build a better business (and better life)&nbsp;
Follow me: on <a href="https://au.linkedin.com/in/bradleygiles">https://au.linkedin.com/in/bradleygiles</a> on <a href="https://twitter.com/Evolution_Perth">https://twitter.com/Evolution_Perth</a>&nbsp;
Enjoying the show? Leave a review&nbsp;

A place for the world’s leading thinkers, planners and doers.

The Evolution Partners is a weekly podcast hosted by Brad Giles. Join Brad as he engages in conversations with some of the world’s sharpest minds, learning a bit more about them and delving into what makes them tick.

A place for the world’s leading thinkers, planners and doers.
The Evolution Partners is a weekly podcast hosted by Brad Giles. Join Brad as he engages in conversations with some of the world’s sharpest minds, learning a bit more about them and delving into what makes them tick.

The Evolution Partners

Each week Brad Giles talks with the world’s leading thinkers, planners and doers who are helping to build great companies in their own way.

We learn how the work they’re doing is creating an impact and get to know a little bit more about them, and what makes them tick.

Each week Brad Giles talks with the world’s leading thinkers, planners and doers who are helping to build great companies in their own way.
We learn how the work they’re doing is creating an impact and get to know a little bit more about them, and what makes them tick.