Running a construction firm or trades business can feel like juggling a dozen balls at once. You’re busy managing crews, selling projects, and keeping thing on schedule. But here’s the good news: you don’t need a CFO on staff or a fancy dashboard to have better cash flow. (Although… a spreadsheet always helps 🙂.) What you really need is a simple, repeatable process you can follow at the start of every week or month to see exactly where your cash stands.

Below are five simple steps to plan your week or month:

1. Start with your current bank balance and open receivables.

First, log in to your bank and accounting system. Write down:

• Your current bank balance. What money is actually sitting in the account today? Also, what payments are pending and expected to clear your account soon?

• Outstanding invoices and pending payments. Who owes you, and when are they due?

2. Review upcoming bills, payroll, and regular expenses.

Next, review everything you’ve scheduled to go out this week or month:

• Bills and vendor payments. Equipment rentals, material suppliers, sub-contractors.

• Payroll. Project your crew’s wages, including taxes and benefits.

• Regular overhead. Rent, utilities, insurance, software subscriptions.

Write down due dates and amounts. Knowing exactly what’s owed and when will help to create a plan.

3. Calculate how much cash will be left.

• If the result is positive, congratulations: you’ve got a buffer to handle unexpected costs or to invest in a new opportunity.

• If it’s negative, don’t panic—you’ve worked out exactly how much cash you need to cover your commitments.

Either way, you can now set a plan.

4. Plan what needs to happen to close the gap.

If you're short, plan out what needs to happen:

• Follow up on collections. A quick phone call or gentle email can speed up collections.

• Generate new sales. Reach out to existing clients or tap into your referral network.

• Trim costs. Maybe delay that equipment upgrade or pause a subscription.

Credit cards and loans can be used, but they should be your last and final resort.

5. Repeat weekly monthly and improve as you go.

You'll get better at this every time. It's not the most exciting topic - but planning and running tight control on your costs is the most successful way to grow a profitable, cash abundant business.

Bonus: Final tip

Set up an automatic set-aside where 10% of each dollar earned is put in a reserves or rainy day account. If you can set it up for automatic transfers, that's always going to be the best way to ensure it gets done. Your future self will thank you!

Need help putting this into practice? Send me a message and I’ll give you a simple a system that works for your business.

If you would like help reviewing your numbers or finding out more about our services, schedule a free consultation: Click here to schedule your free consultation