Feb 6, 2015
This Podcast Is Episode Number 0097 And It Will
Be About Having A Business Plan For Your Construction
Company
Your Business Plan is one of your key Competitive Advantages that can massively increase your sales, profitability and cash flow.
The reason is simple, 99% of your competition do not have one and many of the ones that do rarely look at it.
In most cases when a contractor has a Business Plan it was because they needed loan, investment capital or some other external force was applied. Once the crisis or need passed they simply let it rest-in-peace on the shelf.
Why Spend Time And Effort - To develop your business plan? Because contractors use business plans all the time and they most of them do not realize it until we show them:
Business Plans For Construction Follow This General Format
#1 Executive Summary - Reputation
In construction, your reputation is vital due to the continual onslaught of competition, which is why highly profitable contractors establish and protect their reputations very carefully based in part on having the resources and expertise to complete the work on time and on budget. When you establish your construction company as a firm that gets construction projects done on time and on budget, you will find yourself on your way into the upper income bracket.
#2 Mission Statement - What Type Of Construction Are You Good At?
What type of construction are you focusing on? New, remodel, service and repair? Understand all of the resources you have, your skills, number of employees, type and condition of your tools and equipment, office and warehouse or shop space, location and what type of work and customer demographic generates you the most money for the least effort. Get this right and you can be rolling in money. Get it wrong and you could be in for a lifetime of pain and drudgery!
#3 Competitive Analysis - What Do You Do Better Than Other Contractors Within Twenty Five Miles?
Successful contractors know what type of work they are better at than their competition. They keep a keen eye on their mix of resources and expertise so they always have what they need to complete the work on time and on budget. Every contractor has a different mix of resources and expertise. Successful contractors know which aspects of construction they are good at and which ones to outsource and subcontract. That is part of their Unique Selling Proposition (USP) where they should concentrate all their energies.
#4 Marketing Strategy - Who Are Your Most Profitable Clients Using The 80/20 Rule?
- 20% of your customers normally generate 80% of your net profit.
- 20% of the goods or services you sell contribute 80% of your revenue
- 20% or 2 out of 10 of your staff create 80% of the value for your customers.
For More On This Go To http://www.fasteasyaccounting.com/8020
The frightening consequence of the 80/20 rule is that 8 out of 10 hours we spend at work drive almost no value to the bottom line and the biggest drain is trying to save money doing our own contractor bookkeeping instead of reviewing the Key Performance Indicator (KPI) Reports. Through our contractors bookkeeping services system you can access them 24/7 without opening QuickBooks for Contractors.
Good contractor bookkeeping services can help you understand where your 20% is hidden.
By generating daily reports that uncover the best customers, jobs, services, or products, you will soon see how you can refocus your internal efforts on doing more good work.
This is the great contribution a
company receives from good QuickBooks financial
reports from using QuickBooks the ‘right-way’.
Every construction company knows who their best customers are and
who the worst ones are. The key is to make a list to identify each
group
#5 Executive And Field Staff Qualifications - Journeymen vs. Cheap Labor
The journeyman costs more per hour but produces more and better results at a lower costs over the long haul than a group of cheap laborers. This is easily documented in a well setup QuickBooks file
#6 Financial Information - Profit & Loss and Balance Sheet
Contractors typically run their business with a daily print out from the online account at their bank. Some use software and most that we come in contact with use QuickBooks.
For construction companies with 1-10 employees, including the owner, and annual sales of $0-$5 Million, QuickBooks Premier Contractor Edition is in my opinion the only choice. It can produce all of the financial statements most construction companies need and much more. The most important reports for a contractor to see are the 5 Key Performance Indicators (KPI)
Success is a few simple disciplines practiced
everyday
Failure is a few errors in
judgment repeated everyday
Here Is What We Recommend You Do Next:
#1 Purchase Business Planning Software from Palo Alto Software. They offer two versions and we recommend the "Premier Version" since for the additional few dollars you get so many more reports and options. We can assist you with setup and maintenance of your Business Plan.
#2 Let Us Setup QuickBooks for you or Clean Up QuickBooks as needed and help you write and document your Construction Company Business Plan.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
Need Help Now?
Call Sharie 206-361-3950
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care
about you and all contractors regardless of whether or not you ever
hire our services.
Bye for now until our next episode here on the Contractors Success
MAP Podcast.
Warm Regards,
Randal DeHart | Contractors Accountant