Cash Flow Myth 2 - Finance Manages Cash Flow

The reality is that by the time the finance team gets involved in a cash flow problem there are very few levers they can pull.

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And many of these levers have negative business consequences including the slow payment of suppliers or borrowing money.  

Cash Flow: Myth 2 - Finance People Manage Cash Flow

Furthermore neither of these options may even be available options.  

Most of what goes into a contractor having good cash flow falls is the responsibility of those selecting the right opportunities to pursue and operations.

Contractors with great cash flow are typically very integrated between getting work, doing work and keeping score.  They understand that sustainable growth only comes through balanced execution.  

How effectively are the functional areas of your business integrated?  

Are you happy with your scoreboard including cash flow?

How would your banker and surety rate your company’s cash flow as compared to your competition? 

Would your project team identify cash flow as one of their key objectives? 

Do they know all the tips, techniques and tools for improving cash flow? 

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


Cash Flow Myth 2 - Finance Manages 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 Myth 2 - Finance Manages 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....

Collections and Retention Trend Metric
Assuming that a contractor’s project team has done an effective job of aggressively billing the project, the biggest variable that remains for cash flow is the effectiveness of collections.
Setting the Conditions for Success
The contractors that will continue to grow profitably in the future are those that master talent development. Leaders must (1) setup the conditions for success with their team and (2) lead by example when it comes to their own development.
OrgDev (Benchmarks, Trends, Forecasts, and Predictions)
Construction industry benchmarks, trends, forecasts, and predictions for all things talent related including demographics, broader cultural trends, and education programs.