“Preparing for Major Contracts: How Small Businesses Can Manage Large Orders with Confidence”.

“Landed a Large Project? Here’s How to Plan, Protect Cash Flow, and Deliver Profitably”

When a big order lands on your desk, your first reaction is probably excitement—maybe even a bit of relief. A single contract worth a third of your annual turnover? That’s the kind of opportunity that doesn’t come around often, and it feels like a clear signal that your business is heading in the right direction. But if you’ve been in business long enough, you’ll know that big opportunities can also carry big risks—especially if you dive in without a plan.

I’ve seen it time and again. A small business takes on a large project with the best of intentions—enthusiasm, hard work, and even a bit of pride that they’ve “made it.” But without careful preparation, that same project ends up creating serious cash flow issues, operational chaos, and in some cases, even damages their relationship with long-standing customers who feel neglected as attention shifts to the big fish.

That’s why, when a large order lands—especially one that makes up a significant portion of your annual revenue—you need to press pause. Before you say “yes,” take a step back and make sure your business can actually deliver on that promise without breaking under the pressure.

Why ‘Seat of the Pants’ Management Won’t Cut It.

Let’s be honest—most small business owners run their projects on instinct. We make decisions on the fly, solve problems as they arise, and rely heavily on gut feel. There’s nothing wrong with that when you’re managing a handful of jobs or dealing with the kind of orders you’ve handled a hundred times before. I call this approach “seat of the pants management.” And for a lot of us, it works—until it doesn’t.

When you’re bidding for or delivering a project that makes up a third of your annual turnover, winging it is no longer a safe option.

Why? Because larger projects magnify everything:

• Small mistakes become big budget blowouts. 
• Loose timelines lead to missed deadlines and unhappy clients.
• Poor communication with your team or suppliers can shut the whole job down.
• And most critically, running out of cash mid-project can sink your business.

The reality is, these kinds of jobs need proper project management, not improvisation. That means:

• Detailed planning from start to finish 
• Clear task allocation so everyone knows their role
• Milestone tracking to keep things on time and on budget
• Contingency plans in case anything goes wrong

If you’ve been used to managing jobs from your head, off a whiteboard, or by chasing updates over WhatsApp, it’s time to step up. You don’t need corporate-level systems, but you do need a more structured way to plan, track, and control what’s going on.

Because once you commit to a major project, “figuring it out as we go” can cost you more than just money—it can damage your reputation, disrupt your team, and undermine years of business growth.

The bottom line?

“If the order is big, your planning needs to be bigger. You can’t afford to fly blind.”

In this blog, I’m going to walk you through what I recommend to my clients when they’re considering bidding for—or have just won—a major contract. We’ll talk about how to assess the scope and risk, how to plan your cash flow and resources, and how to protect your business from the very real pitfalls that can come from biting off more than you can chew.

The good news is, with the right planning, a big order can be a turning point. But only if you prepare smart and protect the business you’ve worked so hard to build.

1: Understand the Scope and Impact of the Order.

Before you get excited about the size of the opportunity, you need to fully understand what’s really being asked of you. A large order that equates to a third of your usual annual turnover is significant, and it’s going to stretch your business. The question is, can you stretch without snapping?

Start by breaking the opportunity down.

• What exactly is being asked of you?
• What’s the timeline?
• What’s the scope of deliverables?
• What are the expectations around communication, quality, logistics, and service?

This isn’t just about saying “yes” to more revenue—it’s about knowing exactly what you’re committing to.

1.2. Key Questions to Ask Yourself:

• Can we deliver this project alongside our existing workload? 
• Will it put strain on our team, systems, or suppliers?
• Are the payment terms workable, or will we be expected to carry the cost for months?
• What’s the profit margin once we account for extra labour, materials, and overheads?
• Do we have the operational capacity, or will we need to hire or outsource?

It’s easy to be drawn in by the top-line number on a big order, but remember: turnover is vanity—profit and cash flow are what matter. You might be looking at your biggest job to date, but if it’s poorly planned, it could wipe out your working capital or leave you unable to service your other clients.

1.3. Assess the Ripple Effect.

You also need to consider how this project will impact the rest of your business. Will your team have to drop existing clients to make it work? Will lead times for your regular customers suffer? Could quality drop elsewhere because all your attention is focused on this one job?

It’s not just about being capable of doing the work—it’s about being able to deliver it without compromising the stability or reputation of your business.

A big opportunity should feel like a step forward, not a gamble with everything you’ve built. The only way to know the difference is to pause, assess, and plan with clarity. That starts with truly understanding the scope and the impact this order will have across your business.

2: Conduct a Risk Assessment.

Winning—or even bidding for—a large project brings a new level of pressure to your business. And while the upside can be transformational, the downside can be equally damaging if you don’t assess and manage the risks upfront. This is where a proper risk assessment becomes essential. You need to ask the uncomfortable questions now so you’re not caught off guard later.

Too many small businesses take the “we’ll deal with it if it happens” approach. But when you’re taking on a contract that could define (or derail) your financial year, that’s not good enough. You can’t just hope it all works out. You need to understand where things might go wrong—and have a plan if they do.

2.1. Common Risks with Large Orders.

2.1.1. Cash Flow Pressure.

The number one risk is almost always cash flow. If you’re required to buy materials, hire staff, or pay subcontractors before you get paid, you can quickly burn through your working capital.

• Solution: Model the cash flow (we’ll cover this more in the next section), and try to negotiate upfront or milestone payments.

2.1.2. Supplier Delays or Shortages.

If you’re dependent on a few key suppliers and they delay or increase costs, your whole timeline and margin are under threat.

• Solution: Build in buffer time, diversify suppliers, and lock in pricing early.

2.1.3. Scope Creep.

Larger projects often change after they start. Additional requests, design revisions, or last-minute requirements can your time and profits.

• Solution: Include change control clauses in your contract and be disciplined about managing them.

2.1.4. Team Burnout or Overload.

Trying to deliver a major project on top of your normal workload can push your team too hard. Productivity drops, mistakes increase, and your regular clients may suffer.

• Solution: Be realistic about capacity. You may need to bring in extra hands or adjust your usual workload.

2.1.5. Client Payment Delays.

Even if you’ve delivered everything perfectly, late payments from the client can choke your cash flow.

• Solution: Negotiate strong payment terms, use staged invoicing, and include penalties for late payment.

2.1.6. Reputation Damage.

If the project goes badly, it won’t just affect your profits—it could affect your reputation. A poor review, legal challenge, or failed delivery on a high-profile contract can haunt your business.

• Solution: Be honest about your capacity and underpromise and overdeliver where possible.

2.2 Build a Contingency Plan.

Risk assessment is about more than spotting what might go wrong, it’s about deciding now what you’ll do if it happens. That means:

• Setting aside a contingency budget 
• Identifying trusted backup suppliers or subcontractors
• Creating a communication plan if delivery timelines shift
• Ensuring you’re covered legally with solid contracts and terms

Taking on a big order is exciting, but excitement without preparation is dangerous. A proper risk assessment ensures you stay in control, protect your business, and keep profitability at the centre of everything. You’re not being negative—you’re being professional.

3: Cash Flow Forecasting and Funding Requirements.

Cash flow—not profit—is what keeps your business alive during a large project. You might be set to make a healthy margin on paper, but if you run out of cash halfway through, you could stall the project, damage your reputation, or even put your whole business at risk.

When you’re taking on a large order that represents a significant chunk of your annual turnover, you must prepare a detailed cash flow forecast for the entire project. This isn’t just a nice-to-have—it’s essential.

3.1. Why Cash Flow Gets Squeezed on Large Projects.

Big orders often mean:

• More upfront costs (materials, subcontractors, extra labour) 
• Longer lead times before you get paid
• Increased overheads (equipment, logistics, admin)
• Larger VAT liabilities, especially if you’re invoicing ahead of being paid

All of this can create a funding gap between what you spend and when you get paid.

Let’s say you win a £120,000 project to be delivered over six months. If you’re paying out £15,000 a month in materials and labour, but the client pays you 60 days after each milestone, you could easily be out of pocket by tens of thousands for months. That’s enough to cripple most small businesses—unless you plan ahead.

3.2. What a Proper Cash Flow Forecast Should Include.

• Project timeline broken into key phases or milestones
• Expected income (dates and amounts) based on your payment terms
• All outgoing costs—materials, wages, subcontractors, VAT, equipment, overheads
• Worst-case payment scenario (e.g. if the client pays late or partial payments are delayed)
• Contingency buffer to cover unexpected costs or delays

Build both a best-case and worst-case version of this forecast, so you can see how tight things could get and how much breathing room you have.

3.3. How to Fund the Gap (If Needed).

If the forecast shows a potential cash shortfall, you have a few options:

3.3.1. Negotiate Better Payment Terms.

Ask for:

• A deposit upfront (even 20–30% makes a difference) 
• Stage payments tied to milestones
• Shorter payment terms (e.g. 14 or 21 days instead of 60)

3.3.2. Secure Supplier Credit.

Negotiate delayed payment terms with your suppliers so your outgoings align better with your income.

3.3.3. Use Invoice Financing or Factoring.

If you’re issuing invoices but waiting to get paid, consider invoice finance to unlock cash quickly.

3.3.4. Access a Short-Term Loan or Overdraft.

Speak to your bank or accountant about flexible funding options. Make sure this is part of your plan, not a last-minute panic.

3.3.5. Adjust Internal Spending.

Pause or delay other non-essential projects or capital expenses during the project delivery window.

3.4. Speak to Your Accountant Early.

Don’t wait until the cash is tight—model it before the project begins. At Rule 29, we help clients build cash flow forecasts using real figures, clear assumptions, and dynamic models so they can make decisions with confidence, not guesswork.

A big project is exciting. But if you don’t know where the cash is coming from and when, it can quickly become a nightmare. Cash flow forecasting gives you clarity, protects your business, and puts you in the driver’s seat from day one. Up next, we’ll cover how to make sure your operations are ready to deliver without compromise.

4: Operational Planning and Capacity Management.

Winning a large order is only a win if you can actually deliver it on time, on budget, and without damaging your existing business. That’s where operational planning and capacity management come in.

When the size of the project dwarfs your usual workload, it will stretch your team, systems, and suppliers. Without a clear delivery plan, you risk missing deadlines, dropping the ball with your regular clients, or, worse, failing to deliver what you promised altogether.

This isn’t about pushing harder. It’s about planning smarter.

4.1. Start with Resource Planning.

The first question to ask is: What resources will we need to deliver this job properly?

That includes:

• Staff (admin, sales, operations, technical, delivery) 
• Subcontractors or external partners
• Equipment and tools
• Materials and supplier capacity
• Time (how many hours/days across the business will this consume?)

Map the entire project timeline and break it into deliverable stages. Allocate team members to each phase and identify any skill or labour gaps. Plan around other commitments to avoid conflicts or burnout.

4.2. Review Your Team Capacity.

You might have a great team, but are they big enough, skilled enough, or available enough to take on a 30% uplift in demand?

Ask yourself:

• Do we need to hire? Full-time or freelance? 
• Can we upskill or cross-train existing staff?
• Will this project cause backlogs elsewhere?
• Who’s in charge of what—and do they have the time?

If you do need to hire, factor in time to recruit, train, and onboard before the project starts.

4.3. Secure Suppliers Early.

Don’t assume your usual suppliers will be able to scale with you.

• Can they meet larger, more frequent orders? 
• Are their prices guaranteed, or subject to change?
• Do they require upfront payment or deposits?

Lock in prices and delivery schedules early, and build in backups where possible.

4.4. Protect Your Core Operations.

One of the biggest risks with large projects is that they pull resources away from your regular clients or day-to-day operations.

Ask yourself:

• Will we need to reduce our workload in other areas? 
• Can we maintain our service standards for existing customers?
• Do we have systems in place to monitor both the big project and ongoing operations?

You may need to temporarily pause less profitable work, outsource admin tasks, or reduce sales efforts to stay focused.

4.5. Use Tools and Systems to Stay on Track.

For a project of this scale, managing tasks from your head or a whiteboard won’t cut it. Use tools like:

• Project management software (e.g., Trello, Asana, Monday.com) 
• Shared calendars and dashboards to track deadlines
• Time-tracking tools to monitor resource usage
• Weekly review meetings to assess progress, risks, and blockers

Operational planning isn’t about over-engineering—it’s about getting in front of the chaos before it starts. With the right people, systems, and structure in place, you’ll not only deliver this big order successfully, but you’ll also come out the other side with a stronger, more capable business.

5: Set Clear Terms and Conditions.

Before you say “yes” to any large order, you need to ensure your terms and conditions are watertight. It’s tempting to rush through the paperwork when a big opportunity is on the line, but failing to agree on clear, enforceable terms upfront can leave you exposed to scope creep, payment delays, and legal disputes.

When a project represents a significant portion of your annual turnover, you can’t afford to leave anything to chance. Good terms protect your cash flow, your time, and your reputation.

5.1. Key Elements Your Terms Should Include.

5.2. Payment Terms.

Make sure the payment structure works for your business, not just the client.

• Upfront deposit (typically 25–40%) to cover initial costs 
• Staged or milestone payments aligned with project phases
• Final payment due before delivery or sign-off
• Strict payment terms (e.g., 14 days) and clear late payment penalties

Don’t rely on promises. Have everything agreed in writing and invoice accordingly.

5.3. Scope of Work.

Be crystal clear about what is and isn’t included in the project.

• Define all deliverables, timelines, and expectations 
• Specify formats, quantities, hours, or resource limits where relevant
• Outline what will be considered a change to the scope

The clearer your scope, the less chance of misunderstandings—or of doing extra work for free.

5.4. Change Control Process.

Scope creep is real. You need a process to manage changes without damaging your margin.

• Agree that any changes must be requested in writing 
• Define how variations are quoted, approved, and scheduled
• Include a clause to adjust deadlines and pricing accordingly

This keeps control in your hands and prevents your team from being stretched too thin.

5.5. Delivery Timelines and Delays.

Large projects often involve multiple moving parts. Agree upfront on what happens if there are delays on either side.

• Define delivery dates clearly 
• Allow for reasonable extensions in the event of supply chain issues or force majeure
• Specify what happens if the client causes a delay (e.g., late approvals, missing materials)

This protects your schedule and helps manage expectations throughout the project.

5.6. Ownership, IP, and Usage Rights (if applicable).

If you’re delivering a product, design, or any kind of intellectual property, clearly state:

• Who owns the rights 
• When rights are transferred (e.g., upon full payment)
• Any usage limitations or licensing terms

Don’t assume clients understand the legal differences—put it in plain language.

5.7. Cancellation Terms.

Things change. Make sure you’re not left out of pocket if the client cancels midway.

• Include a minimum notice period 
• State what portion of the fees are non-refundable
• Specify compensation for any work completed to date

Having this in writing prevents awkward, financially painful conversations later.

5.8. Have It Reviewed Professionally.

If the contract is large or the client is a corporate entity, it’s worth having your terms reviewed by a solicitor or contract specialist. A small investment now could save you thousands—and a legal battle—later.

Large projects come with high expectations and high risk. Clear, enforceable terms and conditions are your safety net. They protect your time, your cash flow, your reputation, and your sanity.

Don’t start the job until everything is signed, sealed, and understood by both sides. Because if you don’t define the rules of engagement upfront, you’ll be playing catch-up the whole way through.

Next, we’ll explore how to keep your big project on track once it’s underway, so you deliver with confidence and control.

6: Monitor and Adjust as You Go.

Winning the order is just the start. Delivering it successfully—on time, on budget, and with your sanity intact—is where the real work begins. And if the project is a third of your annual turnover, you simply can’t afford to take your eyes off the ball.

Many small businesses make the mistake of assuming that once the plan is in place, things will take care of themselves. But large projects don’t manage themselves. You need active oversight, clear tracking, and the ability to adjust in real time.

6.1. Track Milestones and Deliverables.

Break the project into key milestones with clear outcomes and deadlines.

• Monitor progress against each stage—what’s complete, what’s behind, and what’s at risk. 
• Use a simple dashboard or project management tool (like Trello, Asana, or Monday.com) to keep everyone aligned.
• Assign ownership—every milestone should have someone responsible for delivery and reporting.

6.2. Manage Budget vs Actual.

It’s one thing to estimate your costs—it’s another to track them in real time.

• Compare forecasted spend vs actual costs each week.
• Watch for scope creep, unexpected costs, or rising material/labour rates.
• Keep a close eye on profit margin erosion—small leaks become big problems over a long project.

If you’re seeing costs creep up, act quickly. Re-price where you can. Re-negotiate where necessary. Don’t just “absorb it”—that’s where profits disappear.

6.3. Track Cash Flow and Payment Status.

Cash flow needs constant attention—especially with staged payments or 30-60 day terms.

• Track what’s been invoiced, what’s due, and what’s been paid.
• Send reminders before payment due dates, not after they’ve been missed.
• Monitor VAT and tax liabilities triggered by large invoices or deposits.

Use accounting software with real-time dashboards (like Xero or QuickBooks) to stay in control. Or work with your accountant to build a live cash flow model for the project.

6.4. Keep Communication Tight.

Poor communication is one of the top reasons projects run late or go off the rails.

• Schedule regular client updates—even if it’s just a short summary of what’s done and what’s next.
• Hold internal check-ins weekly to review progress, workload, and any issues.
• Keep written records of key decisions, approvals, and changes.

The goal is clarity, accountability, and alignment—internally and externally.

6.5. Be Ready to Adjust.

No project ever goes 100% to plan. Things will change—client priorities, delivery schedules, cost pressures, or even your own availability.

The difference between profitable projects and painful ones isn’t the presence of problems—it’s how quickly and calmly you respond.

• If you spot a problem early, you can often fix it without major disruption.
• If you wait until it’s too late, you’re forced into damage control—and that eats into profit and reputation.

Managing a big order isn’t just about hard work—it’s about staying on top of the details week in, week out. With strong project management, financial tracking, and communication, you can stay in control and deliver with confidence.

Final Word: Big Opportunity, Bigger Responsibility.

Landing a large order—especially one worth a third of your annual turnover—is a huge milestone. It’s exciting, validating, and potentially game-changing. But if you approach it without the right planning, systems, and financial control, it can just as easily become a costly misstep.

Success with large projects doesn’t come from saying “yes” and hoping for the best. It comes from stepping back, creating a plan, and running the project like a pro—with real clarity over your numbers, capacity, risks, and responsibilities.

The small business owners who thrive with big orders are the ones who:

• Forecast cash flow with precision
• Understand the operational impact and prepare their team
• Lock in watertight terms and protect their margin
• Track delivery like clockwork—and adjust quickly when needed

In other words, they treat the big project like it deserves to be treated: as a serious business growth opportunity. Not just a win, but a launchpad for the next level.

So before you dive in, pause and ask:

• Are we ready to deliver this profitably, without putting our business at risk? If the answer is “I’m not sure”, that’s where we come in.