Rising material prices and changing economic conditions make managing cash flow a delicate task in the construction industry. To generate healthy profit, you need knowledge, planning, cooperation, and foresight. While costs and conditions may change, there are a few methods of optimizing cash flow that are sure to help your business be the best it can be.
Establish Accounting Procedures
Creating precise procedures at the beginning of projects and following them throughout can help you accurately monitor incoming and outgoing revenue. During projects, use a cash flow chart to keep track of all expenditures to ensure that you and your employees stick to the plans you’ve established.
Predict Future Cash Flow
Before each project, conduct an analysis of your potential expenses to account for any surpluses or shortages. This analysis will guide you in budgeting so you can stay on target and under budget. Calculating your billing schedule and payments made can eliminate the possibility of missing bills or overpaying.
Improve your pricing model by charging for Profit
Underbidding and underbilling are the two main sources of cash flow problems for construction companies. To avoid these problems, remember to submit accurate estimates with pricing that will account for all your costs, any issues that may arise, and profit left over for you. It’s essential to include labor, materials, equipment, overhead, and profit when picking your price.
Automate with Invoicing Software
It’s easy for deadlines to slip past you during busy projects, but unlike some, being behind on your billing schedule directly affects your cash flow. To keep things on track, set a billing schedule based on work progress with software that automatically sends out your invoices. Automated invoice software can also offer your customers alternative payment methods, so you get their payments without any trouble for them or you.
Track Metrics & Performance
Metrics and key performance indicators allow you to see your company’s working capital and over financial performance. You can track revenue by day, week, month, or job, and use these reports to influence your decision-making by identifying areas for improvement. You can also get a greater understanding of which jobs provide the greatest profitability, so you can choose future jobs that fit that structure.
Managing a construction company is a minefield at times, and having your attention split between managing workers, finances, and customer service can lead to mistakes and lost profits. Insta Answer is here to help. Let us take care of your customer service calls so you can focus on whatever else you need. Give us a call today.
Your clients expect and require the best possible service when it comes to elevator maintenance and repairs. To keep passengers safe and keep your business at the top of its game, here are four absolutely essential tips for elevator maintenance.
1. Keep records for repairs
Keeping a log of all of your elevator repairs allows you to track how much each unit is used, how often each has needed repair, and if there are indicators of a problem. By tracking the maintenance, cleaning, and inspection of elevators, it’s easier to diagnose a problem when one arises, having already established an overview of the unit’s history to compare to its current condition.
2. Inspect often
Hand in hand with record-keeping is frequent inspection. In order to stay on top of any issues that come up and prevent some beforehand, you should be persistent with your elevator inspections. Don’t settle for making sure things are in working order; make sure they exceed standards and take note of any that could benefit from upgrades.
3. Replace outdated & faulty equipment
Once these inspections help you identify units in need of upgrades, make those changes. Switch out burnt out bulbs, old light switches, and any other parts in need of replacement. When new equipment and technology comes into play, don’t hesitate to take advantage of it to ensure efficiency and prevent accidents or complaints.
4. Be mindful not to damage during cleaning & repairs
Repairing and maintaining elevators is a lot of responsibility, so making sure you’re using the right equipment is essential. Elevator mechanisms are prone to corrosion when cleaned improperly. To avoid this, it’s best to stick to products designed specifically for the purpose of cleaning heavy machinery.
While you’re busy on repairs or managing your staff, it makes a big difference not having to take care of your business’s calls. So to make your job as easy as possible, hire Insta Answer. We’ll handle all of your calls with intelligence, expedience, and a smile in our voices. Give us a call today.
Cash flow problems are some of the most detrimental challenges for oil and gas companies to face, and no matter how well you run your business or how good your products are, having poor or low cash flow can prevent you from doing anything but completing day to day tasks, leaving you business no room to grow. Here are four ways that you can increase profit for your oil and gas company to put your business on the path to success.
1. Become an Industry Expert
Whether you’ve been in the business for decades or are just getting started, never underestimate the importance of training and constant education. It’s not enough to get a great understanding of the industry when you start out then let that knowledge carry you throughout your entire career. The industry changes, business tactics evolve, and you and your team need to learn as you go if you want to succeed.
2. Continuously Network
Working in the oil and gas industry entails working with employees from a variety of different aspects of your business. Connecting with as many people as possible opens up a world of possibilities as you never know what someone can do for you and your business until you make that connection.
3. Observe your Competitors
Knowing what works and what doesn’t isn’t easy if you’re only focused on your own processes, so don’t be afraid to take a look around. Observing your competitors’ methods and products to see how they reached success (or failure) can help you steer your company in the direction you want to go.
4. Factor Invoices
One of the most direct ways to increase profits for your oil and gas company is to implement invoice factoring: the process of selling account receivables to a financing company that specializes in transactions of this sort. Monetizing pending invoices gives your company the collateral you need to get the jump on your next project right away, so you can expedite your cash flow.
At Insta Answer, we have over 50 years of experience handling customer service calls for oil and gas companies. We’ll take care of all of your calls, so you can get back to the rest of your business. We know the oil and gas industry, we know how to navigate any issues that may arise, and we know exactly what your company needs. We’re here for you. Call us today at (877) 631-9711 to see how we can handle your calls.