How to Survive a CASHFLOW CRISIS (for Roofers)
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Key Takeaways
Prioritize daily financial visibility: Regularly check your bank account and financial statements to understand your cash position and identify potential problems early.
Implement financial triage: Identify and tackle the most critical financial issues first, focusing on getting money in faster and slowing down money going out.
Cultivate a 'good' mindset: Approach challenges as opportunities for growth and learning, avoiding a victim mentality to maintain leadership and team morale.
Negotiate payment terms with suppliers: Communicate proactively with suppliers about potential payment delays to maintain good relationships and explore extended terms.
Convert fixed costs to variable: Restructure expenses like vehicle leases or certain employee roles to be variable, allowing costs to adjust with revenue fluctuations.
Explore diverse capital options: Understand and prepare various financing options, from traditional loans to credit cards and more punitive alternatives, as potential 'off-ramps' in a crisis.
Develop a comprehensive plan: Create worst-case, base-case, and stretch-case financial plans to reduce anxiety and provide a clear roadmap for your team.
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