Aug 18, 2020
As a construction company, your expertise lies in building. But what most contractors fail to realize is that it is also a business that requires good management of the flow of money.
Cash is what drives all businesses. It is vital to the survival and success of every company. But more often than not, contractors put cash flow issues on the backburner and focus on issues that they find easier or more urgent. In this week’s Construction Genius episode, I talk with Patrick Hogan, CEO and co-founder of Handle.com, about the importance of good cash flow management and what you, as a construction executive, can do to improve cash flow in your business.
Tune in and learn how to master your micro-economy by managing your cash.
What’s Discussed in This Episode:
- Why construction companies are struggling with cash flow [01:50]
-
- Contractors go out of business not because of lack of work, but because of too much work [03:21]
- The cash flow checklist [05:16]
- Delegating cash flow matters to in-house personnel or third party agencies [03:43]
- Macro-economy vs micro-economy
[06:35]
- The value of establishing a good relationship with your accounts payable [09:53]
- Things to do before signing a contract with an
accounts payable [07:43]
- Limit the accounts receivable retained in your records [12:26]
- Immediate solutions to micro-economy cash flow
issues [10:58]
- Pay attention to your day sales outstanding to get paid quickly [15:07]
- Avoid building a subservient relationship with your general contractor [16:26]
- How to protect your lien rights [13:04]
- The nitty-gritty of Handle.com [17:21]
- Three things you can do to improve your cash flow in the next 30 days [20:10]
- Patrick’s favorite restaurant [23:25]
About the Guest:
Patrick Hogan grew up in a lumber business family and is an expert in construction payments.
Patrick graduated from UC Hastings Law School and is a licensed California attorney. Patrick is the CEO of Handle.com which helps contractors and suppliers improve cash flow and protect payment rights. Patrick will share the latest trends in cash flow management and discuss the secrets to successful cash flow and payment protection within the construction industry.
Resources:
- Handle.com Website (https://www.handle.com/)
- Cash Flow Checklist (https://www.handle.com/checklist)
Patrick’s Restaurant recommendations:
- Brenda’s French Soul Food
-
- Address (652 Polk Street @ Eddy San Francisco, CA 94102)
- Phone Number (415-345-8100)
- Website (https://frenchsoulfood.com/)
- Brenda’s New Orleans Kitchen
-
- Address (Broadway @ 41st Oakland, CA 94611
- Phone Number (510-929-0510)
- Website (https://brendasoakland.com/)
Connect with me on LinkedIn. For more podcast episodes, you may also visit my website. Tune in and subscribe to the Construction Genius: A Leadership Master-Class Podcast on Apple Podcasts, Spotify, and Stitcher.
Thank you for tuning in!