Cash Flow Tip 4 - Delighting Your Customers

All other things being equal your cash flow will be better if your customer is delighted with the work you have done.

D. Brown Management Profile Picture
Share
Cash Flow: Tip 4 Delight Your Customers - Direct and Indirect

Consistently delighted customers are more likely to:

  • Approve your scope and contract terms
  • Approve your Schedule-of-Values (SOV)
  • Approve your progress billings
  • Proactively communicate with you and help you solve any problems with your billings
  • Bend the “Rules” to help get you paid


Unhappy customers will tend to do the opposite.  They will tend to focus on doing the bare minimum to meet their contractual obligations and internal policies.    

While it is easy to narrowly define the “Customer” it will accelerate your cash flow significantly if you broaden your definition.  There are dozens of people on every project that have some hand large and small in getting you paid. Don’t overlook everyone from inspectors who might be reviewing your construction progress to accounts payable who is ensuring your compliance documentation is all in order.


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....

Talent Development Quote - Jack Welch
From 1981 through 2001 under CEO Jack Welch GE’s market cap (value) grew 18% compounded annually from $14B to $410B. A large part of this profitable growth was due to the rigor placed on their talent development processes directly from the CEO.
Knowledge Management Pyramid
Knowledge Management is a complex topic and the contractors who learn to manage it the best will have an edge in the market. There are several models that can help you visualize the differences between different types of “knowledge” in your organization.
My Talent Promise - To Everyone
Talent is the biggest constraint that most contractors will face over the next decade. Every manager needs to get exceptionally clear on the promises they will make to those around them.