You completed the work. Your employees have been paid. Materials have been purchased. Subcontractors may already have submitted their bills—or been paid themselves. You may even be looking at a profitable job. But the customer’s money still has not reached your bank...
A construction business can have money in the bank and still be financially stretched. There may be customer payments coming in, profitable jobs underway, and plenty of work on the schedule. But payroll is still due. Suppliers and subcontractors still need to be paid....
Your construction business can be busy without being financially healthy. Revenue may be growing. Jobs may be booked months ahead. Customers may be sending payments. There may even be a comfortable amount of money in the bank. Those are useful pieces of information....
Money comes into your construction business, but sometimes it can feel like it leaves almost as quickly. Customers are paying. Jobs are moving. Revenue may even be growing. Yet when you look at the bank account, you may find yourself wondering: Where is all the money...
Being busy does not always mean your construction business is charging enough. You can have a full schedule, plenty of work under contract, and strong revenue while still struggling to produce the profit you expected. The problem may not be how much work you have. It...
