Cash Cycle Before Growth
Use cash conversion cycle thinking to tighten deposits, inventory, receivables, and supplier payment timing.
Growth can starve a contractor when cash leaves before cash returns. The cycle is timing Cash conversion cycle thinking asks how long money is trapped in materials, work-in-progress, and receivables before it comes back from the customer. For electrical work, the practical question is simple: when do we pay for parts and payroll, and when does the customer pay us? Three levers matter Deposits and staged material releases reduce the cash tied up before installation. Progress billing and clean paperwork reduce the wait after work is complete. Supplier terms can help, but only when negotiated and honored. Dragging vendors is…
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