Map the job's lowest cash point
Lay customer receipts and supplier, labor, and subcontractor payments on one timeline before scheduling production.
Operating principle
Design payment timing so new work does not finance old obligations.
The operating reality
The blind spot
Profit on paper does not prevent a cash squeeze. If suppliers and payroll are due weeks before the next customer draw, profitable work can still force the business to borrow or redirect another customer’s deposit.
The math
A project collects $5,000 at signing, then requires $4,500 in materials and $2,500 in labor before the next payment. Cash out is $7,000, so the early funding gap is $7,000 − $5,000 = $2,000.
The example is illustrative, but the discipline is not: use the complete cost and cash inputs from your own business before making the next decision.
How CloseDay applies it
CloseDay makes deposit timing, material commitments, supplier payout, and job cash position visible together. Operators can change the draw schedule, purchase timing, or funding plan before the work starts.
In the trades
The operating principle stays consistent; qualification, measurement, buying cycles, and cash commitments change by trade.
Keep reading
These principles reinforce the same operating decision from a different angle.
Simple dollar example
A project collects $5,000 at signing, then requires $4,500 in materials and $2,500 in labor before the next payment. Cash out is $7,000, so the early funding gap is $7,000 − $5,000 = $2,000.
Illustrative only. Use your own numbers and assumptions; this is not financial advice or a guaranteed forecast.
Run your numbers
Use your own operating numbers to turn this principle into a visible baseline.
Open the calculatorWhat changes
Lay customer receipts and supplier, labor, and subcontractor payments on one timeline before scheduling production.
Move payment milestones, purchasing, or funding so another customer's deposit is not required to finish the work.
Frequently asked questions
Choose one recent month or one completed job, gather the actual inputs, and calculate the baseline before changing the workflow. A visible baseline gives the team a number to improve.
No. CloseDay connects repeatable stages and makes the accountable numbers visible. Scope exceptions, pricing judgment, customer trust, and trade risk stay with the operator.
No. It is an illustration of the calculation. Your labor, materials, market, close rate, and acquisition costs determine the real answer.
Related reading
See how CloseDay would apply the workflow to your trade and market.
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