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 Tip 4 - Delighting Your Customers
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 4 - Delighting Your Customers
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....

Bureaucracy (Stifling or Enabling)
Talent density versus the complexity of the construction business or project is what determines the level of bureaucracy required for sustainable growth.
Lean Principle - 8 Categories of Waste
The first step in improving labor productivity in construction is improving everyone’s ability to see the waste. Waste can then be broken down into 8 major categories. Like colors these are often interrelated.
Levels of Improvement: Start with the Foundation
Every process in your business including field productivity will go through three levels of improvement: From predictable to productive to scalable. Trying to skip levels is the surest way to slow down improvements across the company.