Thanks to our partners Promotive and Wicked File

What happens when a shop owner calls to say they’re going broke—only to discover they’re actually profitable on paper? The truth is, profit doesn’t always equal cash flow. And without cash, even the healthiest shops can collapse.

In this episode of Business by the Numbers, Hunt Demarest, CPA of Paar Melis & Associates, tackles one of the most dangerous misconceptions in business: why shops fail even when they’re making money. From bootstrapping vs. borrowing to the hidden dangers of credit card advance loans, Hunt unpacks real-world lessons from a client whose debt service was drowning out his profits—and the lifeline that helped him turn it around.

If you’ve ever wondered why your bank account doesn’t match your P&L, this episode could be the wake-up call you need.

What You’ll Learn in This Episode

(00:00) Why profit doesn’t always mean cash—and why cash doesn’t always mean profit

(02:12) The #1 killer of small businesses: lack of cashflow

(06:44) Debt service vs. total debt: what really matters for survival

(08:59) Bootstrapping vs. borrowing: how to pick your strategy and stick to it

(11:19) Why cash reserves are more important than paying off all your debt

(13:59) When profit isn’t enough: how debt service can sink a shop

(15:56) The dangers of credit card advance loans—and why they trap so many shops

(18:12) How refinancing debt saved one shop owner from burning $3,000 every month

Thanks to our partner Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our Partner WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop 

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