Cash Flow and the Project Team Good Cash Flow is Critical to a Business’s Success

Inadequate cash flow kills more construction businesses than poor profitability. Without healthy cash flow, a business will not stay fluid, will not run smoothly, and will eventually grind to a screeching halt. Good cash flow is often more of an indicator of success than gross profit. In fact, banks often watch cash flow as a covenant for credit lines, cash flow will determine how fast a business can grow, and good cash flow allows businesses to take advantage of early discounts. Typically, the measure of a project and the project management team is gross profit, not cash flow. Cash flow concerns are often left to the Controller, CFO, or owner. Why is this?

Unfortunately, one of the reasons for this is that too many people believe that profitability and cash flow are two separate entities. The other reason is that, outside progress billings, it is largely believed that the project management team has little control over cash flow. D. Brown Management’s Profit Happens Here! Cash Flow and the Project Team Training Module goes over why neither of these beliefs are fact, as well as why, and how, the project management team has a phenomenal degree of control over cash flow, and why cash flow is probably a more important measurement than gross profit.

We give you ideas to help your project team improve your cash flow, and you’ll learn techniques from startup through close-out that you can also use to improve your organization’s cash flow. Within our Ten Ideas for the Project Team, you’ll find a variety of thought-provoking possibilities that may be methods for your company to apply. We talk about how small, simple, but continuous improvements (Kaizen) can give you big results. Everything from billing formats, to subcontractor and vendor pay schedules, to schedule management, to change order processing, to submittals, to compliance and administrative documents, to the close-out process, and more, is discussed to help you find new ways to improve cash flow.

This module focuses on giving you the information you need to make a difference in the financial health of your business via your cash flow. Every idea within this module stemmed from real world experiences and projects, and is targeted for anyone directly involved in the management of projects, PM’s, or financial managers. Easy to read graphs, worksheets, and hands-on exercises help you apply the knowledge within the scope of the module, so you can take it out into the real world.

D. Brown Management specializes in helping contractors improve their project management and operations processes. Cash Flow and the Project Team is just one of the Profit Happens Here! Training Modules offered. Learn more about all the dynamic services D. Brown Management offers, and sign up for a free newsletter, at www.dbrownmanagement.com.