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....

10 Jugs of Wine - A Tale from Japan
Diffusion of personal responsibility can occur quickly on teams. Everyone must contribute. This is a simple tale from Japan that elegantly illustrates the point and includes how people react even when the failed results are clear.
A Typical Project - Understanding Cash Flow at the Company Level
As contractors face many opportunities in the market it is important to keep cash flow management top-of-mind. Growth eats cash and just a few hiccups in execution can put just about any contractor in a very bad position.
DD001 - Locus of Control
Expanding on locus of control, including how it drives decision making at all levels and answering three questions: Decisions from the top, how to improve locus of control, and how it impacts technology selection & use.