cash flow

Ask Coach – How to Handle the Slow Startup After Coronavirus

June 1, 2020 TonyB Ask The Coach, Coachcasts 00:20:12 0 Comments

“Keep a close eye on your cash flow as we slowly return to work.”

In today’s episode, I discuss projecting and managing our cash flow as we slowly start back to work.

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Managing and Conserving Cash Flow

April 13, 2020 TonyB Ask The Coach, Coachcasts 00:20:14 0 Comments

“It’s vital to conserve cash when dealing with uncertain times like we are facing.”


In today’s episode, I discuss tracking and managing cash flow and ways to conserve cash during the crisis.

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Want to speed up your path to success? Looking for some support for your business or career?

Consider one of our coaching programs to get the support you need. Click below and complete the quick survey and we can schedule a call to discuss the benefits of working with me directly.


Schedule a Coaching Review Call

Thanks for Listening!

Have questions or comments?


I would love your feedback:


  • Leave a review on iTunes or Stitcher. 1 Star of 5 Star, I love your feedback and read every review.
  • Leave a review on our Facebook page.

Listen Anywhere!

  • Subscribe on iTunes or Stitcher
  • Listen on Alexa just say “Alexa, play The Contracting Coachcast podcast.”
  • Online at ContractingCoach.com
  • or on your favorite Podcast Player

Want More?

Check out these other great resources:


Keeping Customers Paying on Time

March 13, 2019 TonyB Coachcasts, Project Management 0 Comments

Ask Coach – Is My Accounting System Wrong?

February 4, 2019 TonyB Ask The Coach, Coachcasts 0 Comments

4 Keys to Managing Project Cash Flow

August 8, 2018 TonyB Coachcasts, Project Management 0 Comments

Ask Coach – How Can I Improve My Cash Flow?

April 2, 2018 TonyB Ask The Coach, Coachcasts 0 Comments

E531: Ask Coach – Cash Flow On Larger Projects

August 29, 2016 TonyB Ask The Coach, Coachcasts 0 Comments

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.

 

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

E471: Ask Coach – Managing And Scheduling Material Deliveries

June 6, 2016 TonyB Ask The Coach, Coachcasts 0 Comments

Schedule and monitor material deliveries to maximize production and cash flow.

 

Q: What are some suggestions on managing the material delivery process to avoid having to pay for materials that haven’t even been installed yet?

A: Create schedules for your material deliveries that match production and make the suppliers meet your needs.

 

  1. Managing the supplier properly will help in many ways
    1. It can help with cash flow, project logistics, storage, damage, theft, etc.
    2. Start the discussion during the pricing stage and incorporate into the PO
      1. Remember, the cheapest supplier may not always be the best
    3. Communicate your schedule early and often
  2. Schedule your deliveries to maximize production and cash flow
    1. Practice the Just In Time method of material delivery
    2. Have suppliers deliver only what you need to keep production up each week
      1. The frequency may depend on your project but try to get smaller quantities more frequently
    3. If you can bill for stored materials plan accordingly
  3. Plan your production and match your materials
    1. Determine and plan your material consumption rates
    2. Schedule deliveries to match your consumption
    3. Monitor your production and increase/decrease your quantities accordingly

E446: Ask Coach – How To Manage Cash Flow

May 2, 2016 TonyB Ask The Coach, Coachcasts 0 Comments

Improper management of cash flow will strangle your business.

 

Q: Can you give me some ideas on how to manage the cash flow in my business?

A: Know your numbers.

 

  1. Follow some key metrics
    1. To manage cash you need to know the key metrics for your business
    2. Watch them closely
      1. As a PM I always knew projected monthly billings and costs
    3. Project them, track them and adjust for them
  2. What are the 7 key metrics for contractors
    1. Project monthly billings
    2. Project monthly project costs
    3. Projected project gross margins – Project Billings minus Project Costs
    4. Overhead burn rate – how much it costs to keep the lights on
    5. Average Accounts Receivables aging time – the average time from invoice to cash in the bank
    6. Sales cycle – the average time from estimate to actual billings
  3. Use the numbers to adjust and plan your business
    1. Make projections for the upcoming months / year
    2. Track the actual versus projections
    3. Use the results to adjust accordingly
      1. Increase billings and decrease cost to make adjustments

E434: Projecting And Managing Cash Flow

April 14, 2016 TonyB Coachcasts, General Business 0 Comments

Stay on top of your cash flow with proper planning and projections.

 

  1. Cash flow is the biggest small business killer
    1. As contractors we often have to spend money before we can invoice
    2. On some projects it can take 90+ days to get payments
    3. This struggle often causes us to Rob peter to pay Paul – a bad habit
  2. Avoid these issues with good planning
    1. Start with the project – create a cash flow projection for each project
      1. Track costs, billings and receipts – both planned and actual
    2. Summarize the information on a single spreadsheet for the company
    3. Know your numbers
  3. When we plan ahead we can prepare for short-falls
    1. Get the best terms you can on suppliers and subcontractors
    2. Set aside funds from every payment to build a reserve – I recommend at least 3 months of overhead costs in reserve
    3. Control spending when you see a downturn coming
    4. Borrow only when necessary

 

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