In episode 28 of The Subcontractors Blueprint podcast, Jacob Austin shares his expertise on cash flow management for construction industry subcontractors. He underscores the significance of cash flow for operational expenses like bills and salaries. Jacob addresses the common issue of late payments, referencing a survey that showed 92% of construction companies suffer from cash flow problems due to this. Despite some reported improvements in payment times, he stresses the need for better transparency. Jacob advises on cash flow tracking, stress testing, and contingency planning, and offers tips for improving cash flow, such as renegotiating terms, credit checking, and timely invoicing. He also discusses site-level management and financing options to handle cash shortfalls, providing a toolkit for subcontractors to maintain financial health.   KEY TAKEAWAYS: The importance of cash flow in running a business, challenges in the construction industry, and statistics on late payments. Guidance on cash flow planning, the unpredictability of cash flow, and the importance of tracking and updating financial information. Strategies for stress testing your cash flow to understand what may happen when payments land late, or bills increase, managing cash flow, and implementing measures to improve cash flow and payment terms. A number of things can be done to improve cashflow, including reducing stock holdings by just-in-time delivery, timing large deliveries to coincide with valuation dates to speed up recovery, negotiating longer payment terms and only paying invoices when they fall due. Subcontractors should regularly monitor their cashflow, and put in place contingency plans for times when cashflow tightens.   BEST MOMENTS: "Taking the eye off the ball is how insolvency can creep up on people.” "There is some good news in that things are improving, and there may well be some more good news on the horizon." "If any of those tests leave you in a less than comfortable position, then this is your opportunity to put a contingency plan into place." "It's only by assessing your cash flow situation and monitoring what you're likely to have in your bank account that you can understand what you can afford when things aren't going your way." "There's no point in overcomplicating a game of snap; if you set up your cash flow as I've described, it really is as simple as it gets, but it still gives you enough information to make informed decisions."   Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.   HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories. LinkedIn - www.linkedin.com/in/jacob-austin/ Instagram - www.instagram.com/qs.zone/ www.qs.zone/all-links