Grow Restoration Business Through More Effective Cash Flow Management Don't look so skeptical - it's true - you can fix your cash flow problems once and for all - it's not that hard and it doesn't take that long. You’d be hard-pressed to find a business owner who didn’t believe cash flow was one of their biggest and most urgent problems.
It is one of the clearest indicators of success or failure, and of operational excellence or dysfunction. A lot of emphasis is placed on increasing sales and revenue, not much emphasis is placed on improving and protecting profits, and just about zero attention is given to managing cash flow. Poor cash flow is the number one reason businesses fail. When you can’t pay your bills it does little to appeal to your current accounts receivable. If the money is not in the bank it provides no help at all. If you can’t pay – you fail! How do you know if you have a cash flow management problem?
- You scramble to make payroll – every time.
- Rarely do you get construction draws at the start of each project
- 30 days after the job closes you are still waiting for payment
- Your AR on your balance sheet is increasing faster than your revenue growth
- Too many employees have company credit cards and material spending is out of control
- Your job costing process isn’t working causing you to fail to find where the problems are leading to low per job profits
- Mortgage companies keep your money and it’s like pulling teeth to get them to release funds to you
- Accounts Receivable collections are haphazard and you know you need to do something about this but you don’t know what to do
- Most final payments from insurance companies are more than 30 days late
- Neither adjusters nor customers seem to care about getting you paid when the job is over
- You feel you are approaching a financial precipice that you might not get beyond
If any of these problems represent your company you have a cash flow management problem that needs resolving. What would you say if I told you that in 3 months you could entirely revamp your cash flow management system to insure you have sufficient cash to run your business when you need it? The insurance damage repair industry pays very well for the work you do … so why is it so hard to make it work for you?
In most parts of the country Xactimate pays more than $50 per hour for drywall repair, painting, and flooring installation. With such strong labor rates why are you always so short on cash – especially when it comes time for payroll? Many business owners face unbearable stress in their businesses. Stress is hard on the body and shortens one’s life, it depletes mental sharpness and acuity, it is often the cause of faltering primary relationships, and it is bad for your business and work environment. Reducing stress caused by under-performing business practices will increase your personal well-being, and will once again make owning your own business a joy.
There are systems and practices you can put into place to change all this – and it just isn’t that hard to do.
There is a wonderful story of Henry Ford and Charlie Steinmetz. Steinmetz had one of the greatest minds in the field of electricity the world had known when Henry Ford was building his automobile empire. Steinmetz built the great generators for Henry Ford in his first plant in Dearborn, Michigan. One day those generators broke down and the plant came to a halt. They brought in ordinary mechanics and helpers who couldn't get the generators going again. They were losing money. Then Ford called Steinmetz. The genius came, seemed to just putter around for a few hours, and then threw the switch that put the great Ford plant back into operation. A few days later Henry Ford received a bill from Steinmetz for $10,000.
Although Ford was a rich man, he returned the bill with a note, "Charlie, isn't this bill a little high for a few hours of tinkering around on those motors?" Steinmetz returned the bill to Ford. This time it read: "for tinkering around on the motors: $10.00 - for knowing where to tinker: $9,990, total: $10,000". Henry Ford paid the bill. Knowing where to tinker is priceless. Fixing the cash flow problems in your business won’t cost near what Henry Ford paid – in the end, you just need to know where to tinker. You can get help to regain your peace of mind, personal well-being, and get back in front of your cash flow curve – you just need to ask for it from someone who knows where to tinker. Believe me - I know where to tinker!
Reference: 3 Month Coaching Plan – The Cash Flow Accelerator – Blow The Lid Off Your Cash Flow Chaos www.growmyrestorationbusiness.com/plans-pricing