I’m a first-year engineering student trying to understand the actual mechanics of running a business outside of textbooks.

I was reading about why businesses fail, and it seems like it’s rarely because they aren’t profitable it’s almost always a cash flow timing issue where clients just pay late.

For those of you running service businesses or agencies, how bad does the “receivables gap” actually get? Do you literally have to just wait and hope they pay before payroll is due, or is there a way you force them to pay on time? Would love to hear the reality of how you manage this.