643: (Solo) Why Profitable Businesses Still Fail (And How to Avoid It)

The Foundr Podcast with Nathan Chan · Mar 23, 2026 · 13m

Most founders think if their company is profitable on paper, they're safe. But here's the truth I learned the hard way: businesses don't fail because they're unprofitable. They fail because they run out of cash.

I had a really good run for about 6-7 years at Foundr before I ever faced a serious cash crunch. And when it hit, it was terrifying — that feeling when you don't know if you're going to make payroll is something I'll never forget. You can have strong revenue, good margins, be growing, and technically be profitable — but if the timing of when cash comes in and goes out isn't managed…