Scoreboard - Cash Flow Metric

The biggest cash flow variable for a contractor is their projects.

D. Brown Management Profile Picture
Share

Cash flow is a critical scoreboard metric for contractors.

Scoreboard: Project Cash Metrics for Work-In-Progress (WIP)

While there are other factors that can impact cash flow at the company level, such as debt service or lack of overall company profitability, the metric track is still typically at the project level.  

This simple metric lets you know if you are either:

  • Financing the projects to some degree if the score is less than 1, or
  • In a positive cash flow position if the score is greater than 1

This metric is explained in more detail here.

  • Where is your current cash flow?  
  • Where has it been trending?  

18 tips for improving your cash flow.




Contractor Exit Strategy 3 of 6: Strategic Sale to an Outside Buyer
Contractor Exit Strategy 3 of 6: Strategic Sale to an Outside Buyer. This is what every contractor wants, however, only a small percentage of deals truly fit into this category.
Balancing Training and Coaching Effectively
Every contracting business is made up of many jobs that need to be done, ranging from relatively simple and short-term tasks to complex, ambiguous, and long-term objectives.
Learning and Communicating Complex Ideas
The business of contracting is getting more complex every year and the only way to keep up is to become experts at accelerating the development of teams.