Cash flow mismanagement is a common challenge for growing businesses. In this webinar, SNB Consulting shares proven techniques to forecast cash flow, manage payment cycles, reduce liquidity risk, and build a system that keeps your business financially stable year-round.
Profit and cash are not the same thing
A business can be profitable on paper and still run out of cash. Growth makes this worse: you pay for labor, materials, and overhead today, while customers pay you 30, 60, or 90 days later. The bigger the job, the bigger the gap.
Key takeaways
1. Build a 13-week cash flow forecast
A rolling 13-week forecast is the single most useful cash tool for a growing business. It maps expected cash in and cash out week by week, so you can see a shortfall coming two or three months ahead, while you still have options.
2. Manage both sides of the payment cycle
- Invoice fast and accurately. Every day an invoice sits unsent is a day added to your collection time.
- Follow up consistently. A simple, polite collections rhythm dramatically improves on-time payment.
- Use your vendor terms wisely. Pay on time, but not early, unless there’s a discount worth taking.
3. Watch where cash gets trapped
For many businesses, cash quietly gets stuck in receivables, inventory, retainage, or under-billed work. Measuring each one tells you exactly where to focus.
4. Reduce liquidity risk before you need to
Establish a line of credit while your financials are strong, keep a cash reserve target, and avoid funding long-term assets with short-term cash.
5. Make it a system, not a scramble
The goal isn’t to fight cash fires every month. It’s to build a routine of updating the forecast, reviewing it with leadership, and making decisions from it, so cash stays predictable year-round.
For contractors
Construction businesses face extra pressure from retainage, progress billing, and large up-front material costs. Tying your cash forecast to your WIP schedule and billing plan is one of the fastest ways to eliminate surprises.
Want a 13-week cash forecast built for your business? Book a strategy call and let’s get started.
