Most business owners watch profit closely. It’s the number the accountant reports and the one that tells you whether you’re “winning.” In Grit Is Good: The Gritty Entrepreneur, published by Writers of the West, Jose M. Berlanga explains why that number nearly ruined him.
“One of the most jarring moments of my entrepreneurial life was realizing I was, technically, a multimillionaire… while teetering on the edge of bankruptcy,” he writes. He had assets, equity and recorded profits. What he didn’t have was enough cash to pay the bills that were due.
That’s the trap he wants every founder to understand: profit is not the same as liquidity. A company can land a $500,000 contract and still go under if the client pays in 90 days while materials, labor and payroll are due now. On paper it’s profitable. In the bank account it’s bleeding.
Berlanga uses a simple comparison. Say you own a $500,000 house with a $300,000 mortgage. That’s $200,000 in equity, so you’re “wealthy.” But if your car breaks down and you have no cash, the equity won’t fix it. “You can’t swipe home equity at the grocery store or use it to make payroll,” he writes.
Growth makes it worse. Bigger contracts mean bigger gaps between when you earn money and when it arrives. Inventory grows, payments slip and costs show up from every direction. Berlanga calls it “financial musical chairs,” and someone always ends up without a seat.
His conclusion is one line every founder should remember: “Profit is the story you tell about how you’re doing. Cash is the air you breathe.”
If you’ve ever had a record month and still worried about making Friday’s payroll, Chapter 7 of Grit Is Good will feel familiar. It also gives you a plan for getting ahead of the problem.
Book Details
Title: Grit Is Good: The Gritty Entrepreneur
Author: Jose M. Berlanga
Publisher: Writers of the West
Release Date: September 16, 2026
ASIN: B0HK13D53J
Language: English
Genre: Business / Entrepreneurship – Small Business, Leadership, Business Memoir
Available on: Amazon
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