Permit lead time

Definition

How long a municipality takes to approve a sign, which sits between the sale and the cash.

Why It Matters

A signed order is not revenue until the permit clears, and in some jurisdictions that is months and not weeks, so a strong order book can sit unbilled while the shop pays for materials and labor. It is also a moat: a shop that knows a city's process wins work a competitor prices blind. Ask for the gap between order date and install date by city, because the slow ones tell you where the working capital is trapped.