Many owners go through a terror cycle every two weeks each time payroll comes due. There are times when there is never enough money on hand, cash reserves are non-existent, and payroll never waits. Do you feel like this and is this what you endure month after month after month?
Failing to get a handle on cash flow and setting aside cash reserves is arguably the single greatest stressor for owners. Many live with the constant fear of missing payroll, they are pursued relentlessly by creditors to whom money is due, and they have their sense of well-being assaulted daily over insufficient funds to run their business in a normal manner. What can be done to break this cycle that jeopardizes your future? As with most problems analysis of key factors will identify where change is needed. If you keep doing what you are doing, you will keep getting what you are getting. Can you live with that? NO … you can’t and you shouldn’t. Here are several critical areas to begin your assessment of what is causing the problem and where solutions may lay:
- Do you know what triggers the release of the ACV payment to your customer at the start of the job?
- Do you have a means in place to immediately capture the ACV payment once it is received by your customer?
- Do you know the trigger that releases the RCV payment within two weeks of job completion?
- Do you earn 75% profit on your mitigation work and 50% profit on your construction? Raising per job profit provides more money for cash flow.
- Does your construction division earn at least 3 times the revenue generated by your mitigation services?
- Do you use a Purchase Order System and consistently job cost?
- Do you provide credit cards to your employees for material purchases?
- Do you navigate the mortgage company maze effectively?
- Do your subcontractors bid your work and tell you what they will charge you to complete the work assigned to them?
- Do you pay your construction workers by the hour instead of by the job?
- Do you provide your subcontractors with a material list based on job scope?
There are others but these are the deadly sins of cash flow mismanagement. If one or two of these are true of your business practices you have found why you are in dire cash flow straights. If 3 or more are true it is no wonder you some days wonder if you are even going to survive. You are likely working harder and harder and harder but making no headway on cash flow and making little to no money at all. You can turn this around. Help is available. I can assist you with each of these issues to help you get back in front of your cash flow, and may even help to put some money away for a rainy day in reserve.
It won’t cost you an arm and a leg to get the help you need to bring about necessary change and positive results. Call me for a FREE 30 minute consultation. It could be the most transformative 30 minutes of your business career. Call The Restoration Entrepreneur TODAY at 800.655.1598.
Reference: 3-Month Coaching Plan – The Cash Flow Accelerator – Blow the Lid Off Your Cash Flow Chaos http://growmyrestorationbusiness.com/successes/ Subscribe and receive our weekly blogs in your email inbox at http://growmyrestorationbusiness.com/blog/ - scroll to bottom of the page.