Lesson 1.2: Robbing Peter, Paul, and Patrick

Here’s how the chokehold shows up:

You land a job with Peter. You use his deposit to pay for the materials you bought for Paul’s job. You underprice Patrick just to get cash in the door and pray he pays on time so you can cover payroll Friday.

You’re not building a business. You’re plugging holes in a sinking ship.

The Chokehold feeds on panic. You’re running your company off your bank balance—if there’s money in the account, you exhale. If there’s not, you scramble.

The worst part? Your definition of “zero” keeps going up. Ten grand in the bank still feels like broke because your costs are sky-high, credit cards are maxed, and that damn insurance premium shows up at the worst time every year.

This cycle has a name: bank balance accounting.

And it’s killing your business.