How the right tools and processes create positive cash flow in your business.
By John Chaney, co-founder, Dexter + Chaney
It’s an old saying: “Cash is king.” More than ever, this saying is relevant to contractors as margins continue to tighten and the amount of work generated by new construction continues to remain relatively flat. Negative cash flow is the No. 1 reason why contractor businesses become insolvent, and so a primary business objective must be to keep operations in the black.
Nearly everything a contractor does affects cash flow. From bidding to buying, from labor to inventory, staying solvent and turning a profit is a complex juggling act with many balls to keep in the air. Running a contracting firm is not becoming less complex, but by focusing on three ways that business is managed, contractors can stay ahead of growing complexity.
