The Basic Math of Ownership Transitions
D. Brown Management
November 17, 2018
Ownership succession for a construction business is complex. Sometimes it is best to back up and look at a really simple model to keep the three primary parties focused on what is truly important.
financial model ownership transition succession
CFMA: Talent Pipelining
D. Brown Management
November 16, 2018
Contractors will face continually worsening talent shortages through 2030. Those that want to continue sustainable growth must manage every aspect of their talent management processes with extreme rigor.
Tim Ferriss Quote - Life Punishes the Vague Request
D. Brown Management
November 16, 2018
One of the best things about Tim Ferriss's book, TRIBE OF MENTORS, is the introductory chapter where Tim describes lessons learned in asking good questions over the years.
Cash Flow: Key Reasons Why
D. Brown Management
November 15, 2018
Cash flow is one of the 7 basic objectives of a construction project team and one of the 7 drivers of contracting business valuation.
Recap of the 4 Myths, 18 Tips, 5Cs, and 4 Metrics of Cash Flow
D. Brown Management
November 14, 2018
Cash flow is critical for the sustainable growth of a construction contractor and one of their key scoreboard metrics. Here's a recap of the 4 Myths, 18 Tips, 5Cs of Credit, and the 4 Metrics & Trends of Cash Flow.
Lead Measures and Outcomes: Starting with the Schedule of Values (SOV)
D. Brown Management
November 13, 2018
It is nearly impossible for a contractor to have consistently great cash flow if they have a Schedule-of-Values (SOV) that isn’t loaded properly and integrated with the project schedule, including a projection of the cash flow.
Collections and Retention Trend Metric
D. Brown Management
November 12, 2018
Assuming that a contractor’s project team has done an effective job of aggressively billing the project, the biggest variable that remains for cash flow is the effectiveness of collections.
Over and Under Billing Metric Trend
D. Brown Management
November 11, 2018
No amount of excellence in collections will help you get close to 100% if you are continuously under-billed on your Work-in-Progress (WIP) as a whole.
Project Cash Metric and Cash vs. Margin Variance
D. Brown Management
November 10, 2018
Contracting is a very capital-intensive business and it is critical to constantly be watching cash flow performance. This metric is the highest level of an “OUTCOME” for cash flow at the project level, summarizing the performance of ops and accounting.
cash flow metrics
Cash Flow Metrics and The Continuous Improvement Process
D. Brown Management
November 9, 2018
Contractors can focus on 3 major metrics to continuously improve cash flow, truly making a “game” out of it.
