The Pain of Cashflow Surprises
One of the most stressful moments for any construction owner is opening the bank account and asking: “Where’s the money gone?”
On paper, the business looks fine. Projects are profitable. Invoices are raised. But cash isn’t there when needed.
Why Cashflow Surprises Happen
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Payment delays – Clients pay late.
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VAT shocks – Tax bills land at the worst time.
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Unplanned costs – Machinery repairs, new hires, or materials spike.
Construction businesses rarely fail for lack of profit. They fail because they run out of cash.
The Power of Micro-Forecasting
Instead of relying on gut feel, micro-forecasts let you test each decision:
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Can we afford a new hire right now?
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What if a client pays 30 days late?
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How will VAT affect next month’s cash?
This prevents nasty surprises.
Example: Hiring at the Wrong Time
A contractor considers hiring a new site manager.
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Without a forecast: They assume cash will cover it.
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With a forecast: It reveals a 3-month pinch due to VAT and late payments. The hire is delayed until cash is safe.
FAQs – Cash Surprises
Q: Isn’t cashflow just about invoicing faster?
A: Invoicing helps, but forecasting prevents gaps you can’t see coming.
Q: How far ahead should we forecast cashflow?
A: At least 6–12 months, updated monthly.
Conclusion: Cashflow Control = Confidence
Cashflow surprises cause sleepless nights. Forecasting puts you back in control. Visit us here to see what we do to help.
👉 If you want to avoid financial shocks in your construction business, book a discovery call here.
