CAT events are often at the center of our discussion as restoration contractors. We are in the business of fixing disasters. In addition to the natural adrenaline rush of these events, the stakes are very high: Operating a restoration business through a CAT event with perfection could lead to a 2 - 10x scaling of your business in months. On the other side of that coin are the doors that have to close when the same events are poorly executed.
On average, I see the excitement to be significantly higher on the drive out to the storm leaving more tears and pain on the drive home. While CAT events are very complex, and I won't attempt to break down all aspects in this short post, I want to address one of the core breakdowns: CASH FLOW.
One of the biggest problems during CAT events is the upside nature of the cash flow. Money seems to fly out the door for equipment, labor, transportation, and consultants, but it's prolonged to come back in. While it's easy to blame insurance carriers for "slow payments," there are many things contractors can do to speed up this process. We find that payments during CAT events from carriers tend to distribute much faster than in non-CAT events when managed correctly. Unfortunately, we often see contractors not submitting their documentation and estimates quickly enough, creating a massive backlog of accounts receivables.
Don't beat yourself up; there's a reason that this happens to so many companies. One of the key reasons is that you have your most talented team members out in the field running sales and project management at a time when logistics are more complex than ever. That means your team is likely filling 12-18 hours a day just trying to service your customers' needs and save homes! The problem is that those are often the same team members submitting estimates and managing the approval process.
There are a few possible solutions, although every event, geography, and team composition requires a customized game plan. I've offered a few themes we've seen prove successful over the years:
The biggest thing we can do here is to bring awareness to the potential cashflow problems you may encounter so that you can do your research, make a plan, and 5x your restoration business the next time you have the opportunity to service the CAT event. WeScope focuses on growth, period. During these events, we've served as key partners to increase capacity, preserve profit margin, and ensure that restoration contractors keep settlements coming in to fuel positive cash flow. As a result, our clients have not only survived the CAT events but have achieved sustainable growth for their businesses, coming out on the other side two times or greater than the size they were before. WeScope will partner with restorers to establish goals, customize workflows, and implement specific quality assurance metrics to ensure you maximize any CAT event you choose to serve.
The restoration industry plays a crucial role in rebuilding and revitalizing communities after disasters, accidents, or damages occur. As we look ahead, it is essential to understand the emerging trends and innovations that will shape the future of this dynamic sector. In this in-depth analysis, we will explore the potential of the restoration industry, highlighting key trends, advancements, and challenges that will influence its trajectory in the coming years.
Consistency is crucial in the restoration industry to deliver high-quality results, meet client expectations, and ensure operational efficiency. In this blog post, we will explore key strategies and best practices for building consistency in restoration operations. From establishing standardized processes and protocols to implementing quality control measures and fostering a culture of continuous improvement, these strategies will help restoration companies enhance their performance, reputation, and customer satisfaction.
In this blog post, we explore why WeScope is the trusted solution for restoration projects, offering estimating excellence to restoration businesses. With its advanced features and intuitive interface, WeScope streamlines the estimating process, enhances accuracy, saves time, and improves overall project management. Discover how WeScope can revolutionize your restoration projects, boost efficiency, and deliver exceptional results