Trial by fire – Part 3

In Chiapas, I was up against a wall, my operation was bleeding cash, and without it, we couldn’t finish the homes we’d started.

The constraint wasn’t the angry mob anymore; it was cold, hard cash flow. I had to unclog that pipe to keep the project alive, and what I learned there still drives my work: focus on the one constraint clogging your money flow, fix it, and the rest falls into place.

Here’s how I turned chaos into cash in Chiapas.

I returned flawed materials (shoddy rebar, cracked cement) that were draining our budget, using those flaws to renegotiate costs, prices, and credit terms with suppliers, stretching payments to give us breathing room. I resigned contracts, sticking with partners I could rely on under the new terms. To cut costs, I secured a government infrastructure project to build roads, reducing our need to spend on access routes. Then, I worked with my team to shorten the construction cycle, pushing crews to focus on homes that were nearly done, good enough to collect payments on, bringing in cash fast. By tackling the cash flow constraint head-on, we got paid, kept the project moving, and walked away with enough to take on the next job.

Now, let’s talk about your world, small construction firm owner.

You’re in chaos. Maybe you see crews waiting on a delayed final inspection, stalling your payment, or suppliers taking too long to deliver, holding up your next job. Perhaps you’re so busy you can’t find time to chase new work, leaving your pipeline dry. In the US, 29% of contractors wait 30–40 days to get paid, and 21% wait 41–60 days. Only 15% were paid in full in 2022. The average firm has a Days Sales Outstanding of 90 days: Three months of waiting for cash you’ve earned! That’s your cash flow bleeding out, and it’s killing your ability to keep the lights on.

Here’s the lesson from Chiapas: all these delays are scary if left unattended; they’re all important, but the most harm comes from the main constraint, the one bleeding your cash the fastest. In TOC terms, it’s the weakest link in your chain, choking your money flow speed—how quickly every minute and dollar turns into cash.

For me, it was cash flow tied up in materials and slow collections. For you, it might be inspections, suppliers, or a dry pipeline. Find that constraint, track where your cash is stuck the longest, and where the delays hit hardest. Unclog that pipe first, and the rest will breathe easier.

Take it from Chiapas: zero in on your biggest cash flow killer, and you’ll stop the bleed. Don’t let every delay bury you; find the one that’s hitting hardest and tackle it first.

What’s the worst cash flow snag you’re facing right now? I want to hear your story and share more hard-earned lessons.