Beyond the Bank Balance: Why Your Gut Might Be Tanking Your Profits

In this episode, Brad is joined by Tom Griffiths, a former JPMorgan corporate banker turned fractional CFO for SMEs. Tom dives deep into the most common financial pitfalls business owners face like making gut-based decisions instead of data-driven ones, and shares his expert framework for navigating economic shifts. KEY TAKEAWAYS Many business owners mistakenly equate their bank balance with profit, forgetting upcoming liabilities like VAT and Corporation Tax. There is a critical difference between a P&L statement and a cash flow statement; profit is theoretical until the cash is actually collected from the customer. Every business is made of the same basic parts. To fix a business, you must identify and repair only the malfunctioning "part". To protect margins, business owners must have a clear minimum profit target for every project and be willing to walk away if it isn’t met. Tracking cash flow on a rolling 13-week basis is the most effective way to prevent crises and make proactive decisions. BEST MOMENTS "It's very easy to get into the trap... of making decisions based on how much money's in the bank account... and forgetting that we have upcoming liabilities." "We're just tax collectors for the government, basically. The VAT and the corporation tax—it was never really our money in the first place." "Financial statements were designed by accountants, for accountants... no wonder it’s easier to just look at your bank account." "You can't cut your way to growth. You can cut your way to improved margins, but there’s a limit to how far that can go." "For every small business that's struggling, there is one that's doing tremendously well... the way we choose to see the world isn't out of our control." HOST BIO Brad Staines is a founder in the thick of it - but by design, not by default. As the face of Aquamark Cleaning, he’s built a multi-million-pound operation with 30+ team members, strong systems, and a culture that gives people space to grow. He’s still involved in the business a couple of days a week - but only doing the parts he genuinely enjoys: building relationships, growing the brand, spending time with the team, and spotting new opportunities. The day-to-day grind? That’s been handed over to a structure that runs without constant firefighting. Brad’s also found his rhythm outside of business - with a deep commitment to physical and mental training. Whether it’s strength work, early morning runs, or cold plunges, he’s a believer that how you show up for yourself shapes how you show up as a leader. Working On It is where he brings it all together - growth, grit, and getting better every week. I