Cash Flow Tip 6 - Build Relationships

It is important to build relationships at all levels.

D. Brown Management Profile Picture
Share
Cash Flow: Tip 6 Build Relationships at All Levels

It will happen in the future but as of today there isn’t a “Computer” or “Process” that is negotiating your contract with you, approving your Schedule-of-Values (SOV), approving your progress billing or ensuring that it works through the customer’s system until payment is made.

These are all things that are done by people and it is the relationships with those people that will accelerate the process.  

The best example of this is a contractor doing a bunch of work for telecommunications companies; many who went bankrupt around 2001-2002.  

  • The Project Manager and their management at the contractor all built deep relationships with Inspectors, Construction Managers and even their Accounts Payable teams for construction.  
  • This resulted in some early warning signals to the contractor’s team about “Major Problems” coming. 
  • Progress billing and payment processes that normally took 6-8 weeks got accelerated to days because of these relationships. 

Remember that relationships at all levels matter.  

Remember that multiple relationships from your company to the same person and company create even more strength.  

Remember to Never Eat Alone.


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....

Rigorous Questioning Develops Critical Thinking
Thinking is really just about asking ourselves then answering a series of questions to help us make a good decision. Critical thinking is quite simply asking ourselves a more complex set of questions then answering them from a larger base of knowledge.
Business Development Models for Contractors
There are two primary models that contractors use for developing business. Often the best approach for sustainable growth is integrating the "Seller-Doer" and "Business Developer" models.
Leading Growth through Building People
Southwest disrupted the airline industry by a relentless focus on building their people around a culture of fun, hard work, and hands-on leadership. Contractors with that same level of focus on their people and culture will dominate the industry tomorrow.