Tips for managing your cash flow

CCS Influencer Shawn Morgan says staying proactive and flexible can keep your business steady throughout the year.

Managing cash flow as a roofing contractor, especially during the slower winter months, is crucial. With a little planning and some smart strategies, you can keep things running smoothly all year. By staying proactive and flexible, you can keep your business steady throughout the year, even when the weather isn’t cooperating. It’s all about planning ahead, staying visible and being smart with your resources.

Plan

Create a cash flow forecast for the year. Look at your busy months and plan for the slower ones. Set aside some profits during your busy times to build a reserve fund... it’s a “lifesaver” when work slows down. And remember, it’s better to budget conservatively and be pleasantly surprised than to overestimate and scramble later.

Billings

Don’t let payments slip through the cracks. Send invoices as soon as a job is done and make it easy for clients to pay...credit cards, online payments, financing options, whatever works. If someone’s late paying, have a system in place to follow up with trap notices and liens.

Work with your suppliers: Talk to your suppliers about flexible payment terms during the slower months. They might let you spread out payments. If you can, buy materials in bulk during the busy season to save some money and earn rebates.

Constant communication with your customers: Keep in touch with your current customers! Reach out to past customers with upsell opportunities or seasonal service reminders. Great customer service and regular follow-ups can lead to repeat business and referrals.

Marketing

Even when work slows down, use social media and online ads to stay visible. Offer seasonal promotions or discounts to encourage clients to book additional services during winter. And don’t underestimate the power of word-of-mouth...give past customers a little incentive to refer you or give you a testimonial.

Expand your services

Think about offering services that work well in the winter. For example, you could do roof inspections, snow removal or gutter maintenance. These jobs can help bring in steady income. Also, consider selling year-round maintenance contracts. Having your customers on a regular schedule can give you predictable cash flow.

Watch expenses

It’s always good to review your costs. Look at things like labor, equipment and office expenses to see if there’s room to save. For example, you might adjust your workforce seasonally or lease equipment instead of buying it outright.

Track cash flow regularly

Use your accounting software to keep tabs on your finances in real-time. Reviewing your financial reports monthly can help you spot trends and adjust before any issues arise.

Financing options

Sometimes, a little extra funding can make a big difference. A line of credit or a short-term loan can help you cover expenses when cash flow gets tight. Get these set up during your busy season, so they’re ready if you need them.