Many contractors struggle with cash-flow problems. They pay suppliers late, they dip into lines of credit too much, they miss tax deadlines -- they even miss payroll. Even contractors who are profitable on paper often don't have money on hand when it's time to pay the bills. You can go out of business, in spite of being profitable, if you run short of cash at the wrong time. It doesn't have to be that way.

The keys to keeping income ahead of expenses are really pretty simple. I've seen them work in my own years in the remodeling industry, and since I've been advising other contractors, I've seen them turn many businesses around. You just have to make up your mind to apply those key points consistently.

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