Growing your business can strain your cash flow so be sure to plan properly.
Q: I want to chase larger projects to grow my business but how can I better manage the cash flow needed?
A: Planning, projecting and executing.
- If you want to grow your business, chasing larger projects is one way
- They will require more manpower, materials, equipment and maybe even management staff
- Those all cost money so watch the cash flow
- Poor planning can force us to make poor choices
- Plan during the estimating process
- If you will need to borrow money be sure to include the costs in your bid
- Need pay when paid terms on materials? That may cost more
- Can you find the manpower – maybe consider a subcontactor/partner
- When you win the job, project the expenses and execute
- Now that we covered the costs, make it happen
- Project your spending versus your income
- Find your shortfalls and solve them
- Execute the plan, review and adjust