I’m Making Good Money, So Why Do I Still Feel Broke?

You land another big client. You send the invoice. You should feel excited.

But instead… you check your bank account and think: "Where did all my money go?"

Some are landing high-ticket gigs, but cash flow is still tight. Others are working harder than ever, but profit seems to disappear before they can enjoy it.

If this sounds familiar, you’re not alone. Many project-based businesses—marketing agencies, consultants, and creative firms—struggle with this issue.

The good news? The problem isn’t that your business isn’t successful. There could be a few key issues causing this, and fixing them can transform your financial stability.

Here are three clear signs you’re making good money—but not keeping enough of it—and how addressing these issues can help your business thrive.

1. You’re Generating Revenue, But Profit Margins Are Too Low

It’s easy to celebrate a big project win, but that excitement fades when you realize how much went to expenses.

Many businesses assume higher revenue means more profit, but that’s not always the case. Profit margin is what really determines financial stability.

Two Businesses, Same Net Profit—But Very Different Realities

Both businesses have $100,000 in net profit, but the way they got there makes a huge difference:

Healthy Profit Margin (40%) - Net Profit $100,000

• This business sold a project for $250,000.

• They kept expenses under control at $150,000.

• Their profit margin is 40%, meaning they’re working efficiently and keeping a large portion of their earnings.

Unhealthy Profit Margin (20%) - Net Profit $100,000

• This business sold a project for $500,000 in revenue—double the first business.

• But their expenses soared to $400,000, leaving them with the same $100,000 net profit.

• Their profit margin is only 20%, meaning they took on more expenses and higher stress—just to make the same profit.

Profit margins vary by industry, and the above examples are simplified for illustration purposes. The key takeaway is that it’s not just about how much money you make—it’s about how much you keep. If your expenses grow too fast, even a high-revenue business can struggle to stay profitable

A financially healthy business scopes out it’s profit margin and prices projects accordingly. You should track profitability per project and ensure your pricing includes enough cushion for a strong bottom line.

2. Your Clients Take Forever to Pay? What does your contract say?

Your financial reports say you’re making six figures. Your bank account says you’re barely getting by.

The problem? You’re waiting 30, 60, even 90 days for invoices to be paid.

Contract Issues Causing Late Payments
An event planning firm books a $50,000 project and completes the event. They send the invoice, expecting payment within two weeks.

But their signed contract states that payment is due 45 days after invoice submission. The client takes the full 45 days, pushing the business into a cash flow crisis as they struggle to pay vendors and staff while they wait for payment.

The Fix?

• Require Deposits: Ask for 30-50% upfront before starting the work.

• Payment Terms: Be clear about your payment terms and Make sure your contracts specify when invoices are due

• Late Payment Penalties: Add a penalty clause for overdue invoices.

• Automate Follow-Ups: Use accounting software to send reminder emails so invoices don’t slip through the cracks.

A financially healthy business has consistent, predictable cash flow. That means clear payment terms, upfront deposits, and automated follow-ups so you’re never left wondering when the next payment is coming. This leads to our last issue.

3. Improper Cash Flow Planning is Creating Financial Gaps

Even if you're profitable on paper, timing issues in cash flow can create financial stress. If you have more money going out than coming in at any given time, you’ll feel broke—even when revenue looks strong.

The Upfront Cost Problem
A branding agency secures a $100,000 project with a large client. The project will take three months to complete, and the agency will receive full payment at the end.

However, they need to pay designers, copywriters, and software costs upfront. By the end of the 1st month, they’ve spent $50,000 but have received zero payments, leading to cash flow strain.

The Fix?

• Structure Payments in Stages: Instead of billing 100% at project completion, require payments at key milestones (e.g., 30% upfront, 30% mid-project, 40% at completion).

• Forecast Cash Flow: Create a cash flow projection to see upcoming income vs. expenses. Plan your payment stages from clients and to vendors based on your projection.

A strong cash flow plan ensures you always have enough money on hand to cover expenses. This means planning for upcoming expenses instead of reacting to them as they happen. Structure your payment terms so cash flows in steadily instead of all at the end of a project.

Final Thoughts: You’re Not Alone

If any of these signs feel familiar, your business isn’t broken—your financial systems just need adjusting.

At ProProject Bookkeeping, we help project-based businesses take control of their finances, improve cash flow, and maximize profit.

Tired of feeling broke while making great money? Let’s fix that, schedule a chat today