How to Systemize Your Cash Flow in Your Elevator Business

In our industry, managing cash flow should be at the top of your elevator business priority list. I say this because I wish it had been at the top of my own when I began Madden Elevator Company many years ago. In my experience, managing cash flow became one of the most important aspects when running my business. I’ve met so many fellow entrepreneurs that are eager to start their elevator business and jump in head-first but haven’t considered a systemized structure to keep their cash coming through the door. 

As an elevator entrepreneur, you could find yourself in a tricky situation if you fail to properly plan the financials for your projects. Sound familiar? Let’s discuss why cash flow is crucial to the success of your business and how you can manage it better in 2025.

Why Predictable Cash Flow Is Crucial 

Cash flow is the backbone of any business, but in the elevator industry, it is even more critical. Here's why: 

• Large and Variable Project Costs 

As elevator business owners, we often take on large, complex projects. Go big or go home, right? This may include installing elevators in new buildings, modernizing old systems, or maintaining equipment for commercial clients. These projects typically require an upfront investment in materials, labor, and equipment. Fronting this cash keeps the job moving forward. But what happens when you don’t have the funds because a client delayed a payment? Or you overestimated the project completion date? It sounds like you may not have the cash inflow to cover ongoing expenses like wages and overhead costs. Not planning your cash flow accordingly can cause a cascade of stress and stalled progress. 

• Workload Fluctuations 

Depending on your location and business model, the elevator industry may experience workload trends. For example, construction cycles can lead to surges in business during certain times of the year, while slow seasons can leave you struggling to meet payroll or service contract obligations. Without a systemized approach to cash flow, your elevator business could quickly find itself running on empty during slower months, putting your operations and growth at risk. 

• Customer Payment Terms 

In the elevator industry, especially with large commercial contracts, payment terms can vary. While some clients may pay upfront or once a project is completed, others may extend payments over months. This could cause a lag between the time you incur expenses and the time you receive the actual payment. Now you have a cash flow gap. Without an organized cash flow management system in place to manage these gaps, your business might find itself caught in a cycle of credit dependence or even bankruptcy. 

How Cash Flow Issues Can Cripple Your Elevator Business 

Without a reliable cash flow system, everything you’ve built could be at risk: 

• How Will You Cover Operating Costs? 

If you don’t have enough liquid capital to cover day-to-day expenses, you may end up turning to loans and credit lines. While this might seem like a temporary solution, persistent cash flow issues can quickly increase your debt, my friend. If you're constantly borrowing to pay bills, it's almost impossible to save for expansion or other business opportunities. 

• Are You Pushing Out Project Completion Dates? 

If you find yourself delaying project timelines, it’s time to incorporate a more structured framework for the way you do business. A delayed project means lost revenue, and if these delays happen frequently, you’re risking client relationships, contract cancellations, and your reputation. 

• Stressing Over Payments and Restricting Your Growth? 

Occasional stress is just a part of being a business owner, but a constant state of stress can start to affect everything, from your decision-making to overall management. When you're busy chasing payments and covering bills, it takes your focus away from scaling your elevator business. If you have plans to grow, you need money for new hires, equipment, and marketing. Without proper cash flow management, reinvesting in yourself becomes nearly impossible — holding you back from scaling your business. 

How to Organize Your Cash Flow as an Elevator Business Owner 

These are my best practices to avoid the pitfalls of poor cash flow management in the elevator industry: 

1.  Be Proactive. Use Cash Flow Forecasting 

One of the best ways to systemize your cash flow is through forecasting. This involves predicting your future cash inflows and outflows. These predictions are based on your past data, project timelines, and customer payment patterns. You can utilize this data to forecast slower months and larger investments. If you’re running an elevator business, chances are you have all of this information. Use it! 

2. Automate Your Cash Flow Processes 

The more you handle things manually—like billing and chasing payments—the more likely details can slip through the cracks. You can automate invoicing, payment reminders, and payment processes to save time and reduce mistakes. There are tons of other tasks you can automate, too, from scheduling service calls to tracking inventory, helping you run your elevator business more smoothly. 

3. 3. Utilize a Cash Flow Management System 

In the elevator industry, where projects take time and payments are delayed, having a cash flow management system helps you stay on top of expenses. eGROW – Your Elevator Business Growth Accelerator - from Elevator Strategic Hub, provides a ready-to-use template and business software program tailored to the elevator industry. Implementing a structured framework for your cash flow will allow for growth within your business, without the stress of cash shortages. 

Recently, I was joined by Kassie Robinson of Robinson Elevator Company (REC), during an episode of The Elevator Entrepreneur. We discussed why the first five years of being an elevator business owner are the hardest – cash flow being the number one issue. Go figure! 

Kassie has found an awesome support system with Elevator Strategic Hub. REC has utilized the documents and training provided in eGROW to organize and systemize their cash flow management. 

“We have a good plan in place. We’re going to start working on a cash flow sheet... but I wish I would have done it sooner. You really don’t think that it’s important until you get down to the wire.”
-Kassie Robinson, REC, The Elevator Entrepreneur 

In the elevator industry, managing cash flow isn’t just a matter of tracking dollars—it’s the foundation of keeping your business afloat and growing. Without a solid system, you're putting your operations, client relationships, and long-term success at risk. As I’ve learned from my own experience, and from speaking with many other entrepreneurs, having a systemized approach to cash flow is critical to surviving the unpredictable nature of the industry. Whether it’s forecasting, automating processes, or using specialized tools like eGROW, now is the time to get organized. If you want to stop stressing over cash shortages and start building a stable, thriving business, implementing these strategies is the first step. Don’t wait until you’re in a tight spot—take control of your cash flow today and watch your elevator business grow. 

Here’s my 3 takeaways to systemize your cash flow in your elevator business: 

1. Be proactive with cash flow forecasting 

1. Automate processes when you can 

1. Utilize an industry-specific cash flow management system like eGROW 

Interested in learning more about how eGROW can eliminate your cash flow issues? Click this link and figure out how you can join eGROW — TODAY.