What’s the mark of a healthy business? Is it profit? Customer count? Leadership? I’d argue that the clearest sign of a healthy business is stable, positive cash flow. With cabinet shops, getting the timing right on cash inflows and outflows is crucial.
Outsourcing manufacturing capacity helps you generate consistent cash in two major ways:
  • You expand your capacity without investing in new, expensive equipment or inventory
  • You’ll have more time to bid jobs CONSISTENTLY
I’ve written about it before, but it bears repeating: a consistent sales process is the only way to end the vicious sales cycle.
You know what the vicious sales cycle is because your shop lives in it month after month. You bid, bid, bid, and then you manufacture, manufacture, manufacture. When you’re busy producing, you don’t make time for sales, so your cash reserves deplete. When you finish your manufacturing push, you finally take time to assess your accounts and realize that your cash has bottomed out.
Having low cash reserves is not a great feeling. If you haven’t developed a consistent sales process, your mood probably correlates with your cash levels. That’s no way to live. While you focused on sales, your team may not have enough work to do because you’ve finished the manufacturing jobs in your queue.
The only way to end the vicious sales cycle is to implement a consistent sales process, but what does that mean?
When you outsource your manufacturing capacity, you gain the time to bid jobs more consistently, not just when your current jobs are complete. If you keep your sales funnel full, you’ll never have to scramble for more work or face a cash flow crisis.
If a consistent sales process is part of your everyday efforts, you’ll consistently grow year after year without the violent swings up and down. Your business will be healthier, and so will you.
Are you ready to try outsourcing so that you can finally focus on consistent sales and end the vicious up and down of your current sales cycle?
See Jeff's full article, which features a link to his podcast.

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