Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process

A basic Schedule-of-Values (SOV) with flat billings and normal collection processes will yield about a 30% return on capital over the first 12 months of a project when looking at it from a cash basis.

D. Brown Management Profile Picture
Share

This is in the average-high range for contractors, depending on type.  

Cash Flow: Tip 14 Aggressive Billings - Pre-Wiring for Success

Our focus is helping contractors achieve performance in the upper-end of their peers, including cash flow. Look at the differences that aggressive management of every aspect of billings can make:

We are revamping our publicly available cash flow workshop that includes these 18 tactics that contractors can use to accelerate cash flow. Stay informed of updates on release.


Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow Tip 11 - Managing Change Orders
A well managed change order process will have a hugely positive impact on customer satisfaction, profitability, and cash flow. Poorly managed, this will negatively impact all three and will sometimes impact cash for years.
6 Common Exit Strategies for Contractors
Contracting is a capital-intensive and risky business. The construction business is also amazing, with the owners making a good return on their capital.
The Quit Option
Most people rarely quit in the middle when they can see the end. They just have trouble getting started because the overall “Big Goal” seems too complicated.