iB4e Coaching

𝗛𝗼𝘄 𝘁𝗼 𝗙𝗶𝘅 𝗬𝗼𝘂𝗿 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗙𝗮𝘀𝘁

In this episode of The Courage to Lead podcast, I speak with A***n WebsterBerry, Founder and CEO of WebsterBerry Marketing, who talks about what really drives business growth, and it is not what most owners think. Check out this episode HERE. https://podcasts.apple.com/us/podcast/how-to-fix-your-leadership-fast-episode-296-arias-websterberry/id1553064486?i=1000740415452

Listen to all episodes of the podcast on Spotify, Apple/iTunes, or wherever you get your podcasts.

The 1st question I ask clients about their cash flow is, " Do you know your numbers weekly or only when there’s a problem?"

Most contractors don’t have a cash flow problem.

They have a visibility problem.

If you only check your numbers when stress hits, you’re already behind.

Strong businesses track:
• Cash in and cash out every week
• Job profitability in real time
• Accounts receivable aging
• Upcoming expenses before they hit

This is how you stay in control.

Not guessing. Not reacting. Not hoping.

If you want a steady cash flow, start with weekly clarity.

𝗠𝗼𝘀𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘄𝗻𝗲𝗿𝘀 𝗧𝗿𝗮𝗰𝗸 𝘁𝗵𝗲 𝗪𝗿𝗼𝗻𝗴 𝗡𝘂𝗺𝗯𝗲𝗿𝘀

A few years back, I sat down with a commercial contractor who was frustrated.

He told me: ‘𝘞𝘦’𝘳𝘦 𝘥𝘰𝘪𝘯𝘨 𝘢𝘭𝘮𝘰𝘴𝘵 $4 𝘮𝘪𝘭𝘭𝘪𝘰𝘯 𝘢 𝘺𝘦𝘢𝘳… 𝘣𝘶𝘵 𝘐 𝘧𝘦𝘦𝘭 𝘣𝘳𝘰𝘬𝘦 𝘢𝘭𝘭 𝘵𝘩𝘦 𝘵𝘪𝘮𝘦.’

So I asked him to show me his numbers.

He showed me the scorecard his team used to track their weekly metrics. It looked impressive:
- Revenue
- Profit
- Cash in the bank
- Jobs completed

But here was the problem…

Every single number he was tracking told him what had already happened.

So I asked him one question: ‘What numbers are you tracking that tell you what to DO this week?’

And he just stared at me.

Because he didn’t have any.

So every week, his leadership meeting sounded like this:
‘Revenue is down.’
‘Cash is tight.’
‘That job didn’t make money.’
‘Blah, blah, blah.’

But no one knew what to change. So, I shifted his focus to just a few lead metrics:
- Invoices sent this week
- A/R follow-ups made
- Jobs with weekly planning completed
- Bids submitted and followed up

Within 60 days, there were definite measurable differences: Cash flow stabilized, fewer surprises on jobs, their AR numbers improved, and all because they stopped reacting… and started leading.

Lag measures are okay for giving you a snapshot in time that shows how your business performed over a period. You need lead measures to identify what metrics may be headed in the wrong direction so you can take the steps necessary to mitigate or avoid the problem.

If you're using a scorecard in your leadership meetings, make sure it has a mix of lead and lag measures. If you don't currently use a scorecard or want to learn more about scorecards, DM me. I'll help you put one together for your business.