It’s the business risk that could hold back the long-term profitability of many construction trade businesses in Northern Nevada. While contracting firms are busy with current projects and securing new customers, cash flow is leaking from the business, and it can cause timing and margin issues without owners even knowing it.
Here are three signs for business owners to look out for:
• Receivables profit leakage – Contractors in the construction trades are often so busy running their business that nobody is focused on collecting the customer payment receivables. Additionally, work that was completed may never have been billed at all. That doesn’t even address all the change orders, extra hours and rush work requests from customers. Regular and consistent cash flow requires dedicated focus on collecting customer receivables…