Name: M.B. Roche & Sons
Based: Hessle
Website: www.rochecivilengineering.com
As a small family-run civil engineering firm we are all too aware of the dangers of poor cashflow and the much-used quote that cashflow is “the life blood of the construction industry”.
Two out of three private sector firms are family-owned and only one third survive into the second generation. Being in a position of moving from first generation to second generation, we have to ensure cash is forecast, chased, reported and monitored in a disciplined and regular manner, in the belief it will be a source of significant competitive advantage.
Following a strategic management meeting it was decided to compare our average debtor days and to set targets for reduction. Secondly, as the payment process doesn’t start until the invoice has been issued we decided to issue invoices electronically whenever possible.
Finally, we agreed not to be afraid that chasing outstanding invoices would upset existing customers so long as we were polite and professional.
Results have been promising with average debtor days for January to March being 61 days, April to June 44 days and July to September 42 days.
Daniel Roche is the director of M.B.Roche & Sons.
