Knowing your cash flow is crucial to your company’s success. Having that stability will help you weather surprises like seasonal dips in business or an unexpected tax bill. Lawn & Landscape Magazine ran an article today called “Keep Your Eye on the Money”, and it covers this topic in great detail with interviews from three different landscape contractors, including one of our very own – Grant & Power Landscaping out of West Chicago.
Each contractor interviewed had the same goal: keep cash flowing year round. How they achieve that may differ. In Grant & Power’s case, they focus on a flexible, seasonal labor force that they can grow or shrink as needed. We know personally that they do snow removal in the winter, which demands a very flexible work force since Mother Nature doesn’t show up on a fixed schedule.
Two other contractors focus on billing and knowing their receivables. Prompt billing of customers emphasizes the need to pay and keeps your cash flow from stalling. Unpaid work throws your balance out of whack, and getting paid quickly reduces headaches and let’s you plan ahead better.
Something we would add to the conversation is smart financing on equipment. We often have offers with deferred payments and little or no interest that help keep your cash flowing. Often times you can own a piece of equipment for a full season before making a payment! We’ve also got great seasonal offers, like our customized snow leases, which let you keep the equipment year round, but only make payments during the winter months. Renting equipment is another great option for those who don’t want to commit to monthly payments on new equipment. Just know that your fleet doesn’t have to suffer if you’re informed about your options!
So keep an eye on your cash. It’s the lifeblood of your business and if you monitor it smartly, you’ll be in business for a long time to come.
For more information on new, used or rental equipment, visit our website.