Cash Flow Tip 6 - Build Relationships

It is important to build relationships at all levels.

D. Brown Management Profile Picture
Share
Cash Flow: Tip 6 Build Relationships at All Levels

It will happen in the future but as of today there isn’t a “Computer” or “Process” that is negotiating your contract with you, approving your Schedule-of-Values (SOV), approving your progress billing or ensuring that it works through the customer’s system until payment is made.

These are all things that are done by people and it is the relationships with those people that will accelerate the process.  

The best example of this is a contractor doing a bunch of work for telecommunications companies; many who went bankrupt around 2001-2002.  

  • The Project Manager and their management at the contractor all built deep relationships with Inspectors, Construction Managers and even their Accounts Payable teams for construction.  
  • This resulted in some early warning signals to the contractor’s team about “Major Problems” coming. 
  • Progress billing and payment processes that normally took 6-8 weeks got accelerated to days because of these relationships. 

Remember that relationships at all levels matter.  

Remember that multiple relationships from your company to the same person and company create even more strength.  

Remember to Never Eat Alone.


Cash Flow Tip 6 - Build Relationships
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow Tip 6 - Build Relationships
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Robotics, Construction, and Capital
As you watch the Atlas Robot from Boston Dynamics do some basic parkour moves or this drywall hanging robot it is easy to dismiss them as only working in a controlled environment. It is also easy to dismiss looking at the speed, flaws and costs.
Top Performers Asking Questions
Top performers are always actively reaching out to meet new people. Top performers are constantly asking others questions. Top performers have daily habits where they work to acquire new knowledge.
Strategic Market Experiments
A growing contractor must systematically allocate 10-20% of their resources, including talent and capital to Strategic Market Experiments that have a probability of growing into a major market and becoming a "Strategic Choice."