As the owner of a construction business, there may come a point when you want to increase what you are taking from the company. Maybe revenue has grown. Maybe the business has been profitable for several months. Maybe there is more money in the bank than there used to...
Winning more profitable work sounds like it should immediately strengthen your construction business. But growth can create a financial challenge that catches contractors off guard: the business may need to spend more cash before it collects the additional revenue. A...
A profitable construction business can still experience cash pressure. Cash may be tied up in customer payments, retainage, or the timing between when job costs are paid and when customer cash is collected. At the same time, payroll, subcontractors, suppliers,...
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 company can be busy, your jobs can be profitable, and your Profit & Loss Statement can show that the business made money—and you can still look at the bank account and wonder: Where did all the cash go? That can feel contradictory, but profit and...
