Summer’s a great time to make money — longer days, dry weather, more jobs. But for too many contractors, it’s also when cash flow goes sideways.
One week you’re flush. The next, you’re begging the lumber yard to hold your tab a few more days.
Let’s fix that.
1. Bill Like Your Life Depends on It (Because It Kinda Does)
Don’t wait until the job’s completely done to bill. Send progress invoices. Set milestone payments. Whatever your contract allows, use it. You’re not a bank — so don’t finance someone else’s project.
Also, send invoices the day they’re due. Not when you get around to it. Your bank account doesn’t care how busy you are.
2. Collect Fast, or Regret Slow
Late payments are the silent killer of good contractors. Build collection into your workflow. That means:
Friendly reminders before the due date
Late fees after a reasonable grace period
And if needed, stop work until you’re paid
You don’t have to be a jerk — but you do need to be firm.
3. Don’t Overspend Just Because You Feel Busy
Busy doesn’t mean profitable. Track your numbers. Job costs. Labor. Material use. Subcontractor invoices. If you’re not using a system (like, say, ProfitDig…), now’s the time.
Plenty of contractors go broke during their busiest months because they don’t know what they’re actually making. Don’t be that guy.
4. Line Up the Next Job Before You Need It
Cash flow is all about keeping the pipeline full. Don’t wait until the current job wraps to go find the next one. Always be quoting. Always be networking. Always be looking ahead.
Need to fill a gap fast? Offer a deal on small jobs you can knock out in a day. You’d be surprised how much money you can squeeze out of a well-timed pressure washing or concrete pad.
5. Have a Buffer Fund (Yes, Really)
It ain’t glamorous, but having a stash of cash for slow weeks is a game-changer. Aim for enough to cover two months of your basic expenses. That way, if a job falls through or a check bounces, you’re not up a creek.
And hey — when the economy’s jumpy, that buffer can be the difference between “no sweat” and “total panic.”