Managing Cash Flow in Electrical Projects

The biggest killer of electrical businesses isn't a lack of work—it's a lack of cash. You have to pay the wholesaler for cable today, but the builder might not pay you for 45 days. That "Gap" is where businesses die.

1. Deposits are Mandatory

Never start a residential job without a deposit (usually 10-30%). This covers your materials upfront.

2. Progress Payments

For large commercial jobs, use Progress Claims. Bill at "Rough In," "Fit Off," and "Commissioning." Don't wait until the end.