On Paper vs. Real Life: The Truth About Running a $1M Small Business.

On Paper vs. Real Life: The Truth About Running a $1M Small Business

From www.tawnyjohnsoncpb.com

Discover the real-life challenges of running a $1 million small business with five employees. From cash flow struggles to operational chaos, here’s what business ownership really looks like beyond the spreadsheets.

1. Revenue vs. Cash Flow: $1M Doesn’t Mean You’re Rich

On Paper: You’ve crossed the million-dollar mark. Success!

In Real Life: Your bank balance is $14.72 and payroll is due in 3 days.

• Payroll, taxes, rent, and expenses eat into your cash—fast.
• Clients pay late, throwing off everything.
• Surprise expenses (repairs, software, taxes) are regular guests.

Pro Tip: Use a cash flow forecast and check your cash position weekly. Think of it like brushing your teeth—boring, but non-negotiable.

2. Staffing: Roles on Paper vs. Chaos in Real Life

On Paper: Five employees, five roles. Everyone’s focused and accountable.

In Real Life: Two people are doing everything. One just quit via text. Another one’s been “in training” for six weeks.

Fix It:

• Document repeatable tasks.
• Cross-train to avoid bottlenecks.
• Set aside time for team development—even 15 minutes helps.

3. Systems: What You Meant to Build vs. What Actually Exists

On Paper: You’ve got SOPs, CRMs, and automations for days.

In Real Life: Your “SOP” is a 3-year-old Google Doc. Your team still texts for the Wi-Fi password.

Quick Win: Pick one process and document it this week. Don’t wait for the “perfect” system. Just start.

4. Profit Margins: Healthy on Paper, Fragile in Reality

On Paper: 15% net profit. Clean and consistent.

In Real Life: One refund, one bad hire, or one slow-paying client = you’re underwater.

• Late payments
• Unplanned contractor costs
• Chargebacks and refunds
• Hiring and onboarding costs

Reality Check: Revenue is ego. Profit is sanity. Cash is survival.

5. The CEO Role: Strategy vs. Survival Mode

On Paper: You’re the visionary, building strategy and culture.

In Real Life: You’re doing HR, chasing invoices, cleaning the office, and holding your team’s emotional baggage.

Real Talk: You can’t grow if you’re stuck in the weeds. Block off 90 minutes a week for CEO-level thinking. Non-negotiable.

Conclusion: Owning the Gap

On paper, the business looks clean. In reality, it’s controlled chaos. This isn’t failure—it’s what real business ownership looks like. Especially when you’re in that in-between stage: too big to wing it, not big enough to fully delegate.

But the more you embrace the chaos with intention, the more it turns into clarity. Your business can run smoother. Your finances can be organized. Your team can be stronger.

And yes, you can enjoy running your business again.