Money through the workshop.
WHAT THE PATTERN IS
Material and labour paid before completion, and lead times are long.
WHAT THAT PRODUCES
Substantial cash committed per order.
WHAT TO ESTABLISH
A deposit covering materials, before work begins.
WHY
Bespoke pieces cannot be sold to anyone else.
WHAT TO ESTABLISH ON LARGER JOBS
Staged payments.
WHAT STAGES TO USE
On order, at a defined point of manufacture, and on completion.
WHAT TO AVOID
Payment only on completion of long projects.
WHY
It means funding the whole job yourself.
WHAT TO ESTABLISH
Final payment before delivery or installation.
WHY BEFORE
Collection afterwards is substantially harder.
WHAT TO DO ABOUT FITTED WORK FOR CONTRACTORS
Establish their payment record before accepting.
WHY
Subcontracting to builders carries real collection risk.
WHAT TO TRACK
Work in progress: material and labour consumed on incomplete orders.
WHY
It is invisible and it is substantial.
WHAT TO MONITOR
Deposits held against work not yet done Balances outstanding on completed work
WHAT TO ESTABLISH ABOUT MATERIAL PURCHASING
Ordering for specific jobs rather than accumulating stock.
WHY
Timber stock is cash sitting still.
WHAT TO BALANCE
That against availability and price.
WHAT TO REVIEW
Margin per job, against estimate.
WHAT THAT REVEALS
Which work is actually profitable.
