Your to-do list is often long and constantly growing longer when you're an entrepreneur. There are a lot of things you need to do, and it can feel like they're all urgent. In such cases, it's easy to push essential tasks to the side and focus on less vital activities, but that often means you miss deadlines, make mistakes, or always feel like you're trying to catch up.

 

Here are some ways to determine the most productive order to complete your tasks.

 

1. Know all of your tasks

 

It isn't enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps.

 

Write a list of the activities you must do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they'll take to complete, and their deadlines.

 

Now you know what you'll need to complete and when.

 

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Topics: Construction Accounting, Contractor, Contractor Tips, Contractor Operating Tips, Construction Productivity, crisis

Managing cash flow is a vital part of running a successful construction business. Some contractors think managing cash flow means keeping track of how much money enters and leaves their business, but there's actually more that goes into it. 

[Starting Cash + Cash In - Cash Out] = Cash Flow

Contractors and sub-contractors know there is more to profits than what is shown above, and most of you rely on your "gut feel" to see when the project has made a profit or not.

 

Cash flow forecasting is an incredibly valuable tool that helps you anticipate cash flow issues, plan for days when your cash flow is limited, and show the bank that you are prepared. It's a necessary process that you shouldn't ignore.

 

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Topics: Construction Cash Flow, Construction Accounting, Contractor, Contractor Tips, Contractor Operating Tips, crisis

Dealing with unexpected cash-flow difficulties, even if you're working hard to avoid shortfalls, is hugely distracting. A formerly reliable client might take much longer to pay than anticipated leaving you out of pocket. If you're starting a construction business, it could simply be taking longer than expected to turn a profit in these trying times.

 

Red light warnings

Develop red light systems to warn you automatically if something needs querying:

• Check as early as possible if leads, orders, or sales, fall below a certain threshold, or a substantial customer ends their subscription (recurring service).
• Pay attention to your Key Performance Indicators. Make sure you have regular feeds of how your business is performing.
• You also need to know about any substantial invoices that are in dispute, particularly overdue debts and clients exceeding their credit limits.

Building productive relationships with your key suppliers is important, so they are prepared to extend extra credit to you when you need it. 

If you have a properly set up accounting software, then it should be relatively easy to view your red flags weekly, monthly (or any period you set).

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Topics: Construction Cash Flow, Construction Accounting, Contractor, Contractor Tips, Contractor Operating Tips, crisis