10/28/2026
Your new government contract could be profitable. But can your business afford to get it started?
Its something contractors don't always think about until the bills start coming in. New employees need to be paid. Equipment may need to be purchased. Subcontractors are ready to get to work. And all of this can happen before you've received your first payment. Sound familiar?
That's why cash flow planning is so important during the first 90 days of a new contract. Before work gets underway, take a good look at what you'll need to spend and when you can realistically expect money to start coming in. And don't stop there! As the work progresses, compare your actual expenses with what you originally planned. Are payroll costs higher than expected? Has billing been delayed? Are you spending money faster than you're collecting it?
A few adjustments early on can make a big difference in keeping your cash flow on track. Because here's the thing: a profitable contract on paper doesn't necessarily mean there's enough cash in the bank to support it. And that's a lesson no contractor wants to learn the hard way.
