5 Reasons Contractors Run Into Cash Flow Issues

Grab your free cash flow planning template here: https://trybta.com/bmv Want more tools, systems and expert advise? Check out Breakthrough Academy here: https://trybta.com/learn-more We’ve all heard the statistics about how half of all businesses go under within 5 years. But do you know why? It's not because they can’t find customers or employees. It's not because they get into legal trouble. It's not even that they’re unprofitable.. According to a report published by US Bank, when businesses fail, it’s a direct result of mismanaged cash flow 82% of the time. In other words, businesses die because they run into cash crunches. They fail because they do not have the cash on hand to meet their immediate financial obligations. They choke out. It's like drowning 3 inches below the surface. In this video, we’re diving into the five most common causes of cash crunches and the steps you should take to avoid them. We’ll cover: Five reasons cash flow problems usually start, and how to prevent them from happening to your business How to make a cash flow plan using our free template How to use cash flow forecasting to avoid seasonal cash crunches How to optimize your payment terms to minimize risk to your business The importance of accounts receivable and timely invoicing to maintaining a healthy cash flow Why rapid growth can actually kill a contracting business and the importance of scaling sustainably 00:00 - Intro 02:32 - 1) Poor Cash Flow Planning 03:20 - 2) Seasonality 04:40 - 3) Payment Terms 06:42 - 4) Slow Invoicing or No A/R Systems 08:01 - 5) Rapid Growth 09:26 - Benji's Pro Tips for Avoiding Cash Crunches Subscribe to Breakthrough Academy to never miss a video! 👇 http://bit.ly/youtubebta Interested in working with us? Let's chat: https://trybta.com/welcome Join our Facebook Group: https://www.facebook.com/groups/contractorroundtable/ Connect with us on Social Media: Facebook: https://www.facebook.com/thebreakthroughacademy/ Instagram: https://www.instagram.com/btacademy/ LinkedIn: https://www.linkedin.com/company/10175179/ Email: info@btacademy.com Phone: 1-800-875-1704 #BTA #BreakthroughAcademy #BuildingSuccess