“A lot of business owners think they’re safe because the money is still coming in — but they’re often one disruption away from finding out they’re not.”

That observation comes from David C. Barnett, a longtime advisor to small and mid-sized business owners who has spent more than two decades helping people buy, sell, finance, and grow their companies.

For many entrepreneurs, the focus is naturally on growth — increasing revenue, winning new customers, and keeping things moving forward. But Barnett says that focus can sometimes create a blind spot.

A business can appear successful on the surface while quietly carrying more risk than the owner realizes.

Cash flow, for example, is often seen as the ultimate indicator of health. If money is coming in and bills are getting paid, things must be fine. But Barnett points out that cash flow is more about keeping the engine running than protecting the vehicle itself.

When something unexpected happens — a delayed payment, a sudden expense, or the loss of a key client — that lack of protection can quickly become visible.

“It’s not usually one big event that causes trouble,” he explained. “It’s when a few ordinary problems show up at the same time and there’s no cushion to absorb them.”

Through his work, Barnett has seen how common it is for business owners to operate with very little margin for error. In some cases, everything depends on steady conditions continuing exactly as they are. When those conditions change, even slightly, the impact can be immediate.

Instead of relying solely on income, he encourages owners to think in terms of resilience — building enough liquidity and flexibility into the business so that it can handle disruptions without putting everything at risk.

That often means stepping back and looking at the business from a different point of view. Lenders, landlords, and investors tend to focus less on how well things are going today and more on what would happen if they stopped going well tomorrow.

Seeing the business through that lens can reveal vulnerabilities that aren’t obvious during good times.

It can also change how decisions are made — from how much risk to take on, to how growth is financed, to how prepared the business is for a future transition or sale.

“You want a business that supports your life,” Barnett said, “not one that keeps you constantly exposed to what might go wrong.”

The broader lesson is a simple one, but not always an easy one to apply: growth matters, but stability matters just as much — especially when conditions are uncertain.

For business owners, taking time to understand where the real risks lie can make the difference between reacting to problems and being ready for them.

“Most people don’t realize how exposed they are until they’re forced to deal with it,” Barnett said. “The better approach is to find out before that happens.”

The full conversation with David C. Barnett is available on The Tony DUrso Show including audio, video, and the complete interview transcript.

(Originally published in the Del Norte Triplicate.)