Revenue Does Not Always Equal Cash — Here’s Why

When I launched my firm in 2016, the message was everywhere:

"Bring in more revenue, and everything else will fall into place."

It made sense at the time. More money coming in had to mean more success, right? Plus, I had bills to pay. The goal seemed obvious: collect as much revenue as possible, as quickly as possible.

But here’s what I learned the hard way:

Revenue does not equal cash.

Revenue is simply the total amount of money your firm collects. Every client payment, every retainer deposit – it all adds up to your top-line number. Someone hires you for $5,500 to draft their estate plan? That’s revenue. Good news — but only at first glance.

Because collecting money isn’t the same thing as keeping it.

Revenue still has to cover everything it costs you to run your firm: salaries, rent, software, marketing, coaching programs, and all the little expenses that show up month after month. If you spent $5,000 on marketing, coaching, and systems to land and serve that $5,500 client, you didn’t really make $5,500. You made $500. And that's before taxes.

That’s not a profitable business. That’s a treadmill you can’t afford to stay on for long.

This is why you can build a firm that brings in a million dollars a year, and still find yourself worrying about making payroll. You can work harder, take on more clients, manage a bigger team, and end up with less cash, and less freedom, than you had when you first started.

At 2HLL, we believe in growth, but only the kind that actually supports the life you want. 

Revenue matters. But profit, stability, and lifestyle matter more.