In episode 50 of The Subcontractors Blueprint podcast, Jacob Austin of QS.Zone delves into cash flow challenges faced by subcontractors and offers practical financial management strategies. Joined by a friend who owns a subcontracting firm, they discuss the importance of working with prompt-paying contractors, setting accurate prices, and managing retention. Jacob emphasises the value of setting up separate accounts for taxes and supplier payments to ensure financial stability. The episode provides actionable advice for improving cash flow and profitability, encouraging listeners to adopt these practices to protect your business. KEY TAKEAWAYS:  Strategies for improving financial management and profitability.  Insights from a subcontracting firm owner on improving cash flow.  Importance of setting up separate accounts for specific financial purposes, proactively setting aside funds for annual expenses and supplier payments.  The importance of getting the price right to maintain not only your margin, but your cashflow too.  A simple and effective method for tracking retentions due and reminding yourself of the facts to collect it. BEST MOMENTS: "And then also the likes of your payday lenders and these kind of organisations, they're really capitalising on people's need for money by pushing up their interest rate to some silly percentages. And that feels morally wrong to me. But at the same time, this is just the bank hedging their bets." "So the first thing that he swears by is working for contractors that will pay him promptly and regularly. And what I mean by that is he's got a short payment period and regular valuations." "Now, this makes the business not quite self-financing, because he's still got to cover the labour, which he pays on a weekly basis for the period that he's waiting for his first lot of money." "And the issue is, as much as it was consistent, the inflation that had been consistent alongside it was eroding how much money he was making on every job. So regularly reviewing how much you're making out of your subcontract rates is a vital component of making the right margin on your job." Click to listen to episode 28 mentioned in the show: https://podcasts.apple.com/gb/podcast/the-subcontractors-blueprint/id1701638267?i=1000644284764    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