Cash Flow: Key Reasons Why

Cash flow is one of the 7 basic objectives of a construction project team and one of the 7 drivers of contracting business valuation.

D. Brown Management Profile Picture
Share

 

Cash Flow: 7 Project Team Objects and 7 Drivers of Business Value.

When you align your executive, finance, and project teams around improving your cash flow scoreboard, you will develop business management skills throughout the organization.  

These business management skills and the alignment of the team are what will keep a contractor growing sustainably throughout the different stages of growth.

For effective succession, a contractor must focus on all aspects of talent development but there is no scenario in which ownership succession can happen without great cash flow.

Recap of Cash Flow 

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: Key Reasons Why
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: Key Reasons Why
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....

Issue 7 of 9: Growth Strategy
Construction Ownership Transition Issue 7 of 9: In general, with all other key factors including cash flow, profitability, and customer satisfaction being equal, a contractor that is growing will be able to better handle an ownership transition.
Change Management Fact #1 - It Will Happen
Projects are complex with evolving requirements and changing site conditions. Mistakes will be made. It is how the collective project team manages these changes that ultimately determines success at all levels.
Incentive Compensation for Contractors - Culture
Any incentive program should improve the operating execution, profit, and cash flow of the company. Aligning organizational objectives with the tangible value add to the craft worker in the field and operations staff workers yields the best results.