2. Have your customers pay for their change orders in advance - before the work is started - not at the end of the job. This will improve cash management as well as reduce the customer's final bill shock. 3. Split your final draw into two smaller draws, the first due at substantial completion and the second upon the completion of punch list items. This will help lower end-of-job stress for both you and the client. 4. Hand-deliver invoices and personally pick-up checks. This will make a major difference in your cash flow. 5. Make bill collecting a customer relations effort. Phone, talk with and meet the customer to clear up any confusion, answer questions and resolve problems quickly. This will boost customer satisfaction. 6. When you have bills offering early payment discounts, always pay by the due date for the discount. A two-percent discount will do wonders to overall company net profitability. 7. Pay all non-discounted bills on the last date that will maintain your company's good credit. This will provide you with the cash to pay discounted bills on time. 8. Subcontract rather than employ whenever possible. Subcontractors are paid much less frequently than your own employees and hiring them tends to reduce labor and materials overruns. 9. Consider a bi-weekly payroll. You will increase your cash flow as well as cut your payroll costs in half. 10. Open a line of credit with your local contractor-friendly bank. This can be used to smooth out cash flow bumps. Think of your line of credit as a short-term bridge loan - not a way to get out of financial trouble. The rule of thumb is to clean up your line of credit once a year. So, there you have my top ten cash flow maximization tips. If you follow these simple guidelines, you will see a dramatic improvement in your company's cash flow, growth will be steadier and much easier to manage, and your level of stress will progressively decline. I write for the Contractor Power Newsletter on a regular basis and am always looking for interesting and relevant topics. If you have a business-related question you would like me to answer in one of my upcoming articles, please feel free to contact me at info@paradigmstrategies.com. If you would like to read any of my previously written Contractor Power newsletter articles, you can view them at www.contractorpower.com. About the Author Kevin Lister, founder and president of Paradigm Strategies, the business advising firm to the trades, is a leader in the field of business performance improvement. He possesses nearly 20 years experience in business management and consulting, effectively operating his own ventures and assisting others with realizing business success. With an entrepreneurial spirit and a business owner's point of view, Kevin brings hands-on expertise to helping building contractors, sub-contractors, and suppliers. Kevin has deep knowledge and understanding of the trades, based on fifteen years in the construction industry, a family history of owning trades businesses, and a genuine interest and enjoyment in helping blue collar enterprises. Kevin possesses a Masters of Business Administration (MBA) from Olin Graduate School of Business at Babson College and a Bachelor of Science in marketing from Bentley College. He teaches management and marketing for the University of Phoenix Online. Kevin is a member of several professional and business organizations, including the Institute of Management Consultants (IMC), the Associated Subcontractors of Massachusetts (ASM), the Builders' Association of Greater Boston (BAGB) and the Boston Chapter of the National Association of the Remodeling Industry (NARI). Kevin has been awarded the Certified Remodeler Associate (CRA) designation from NARI. He has also been named to the board of directors of the Eastern Massachusetts Chapter of NARI. | 
