Oct 9, 2015
Successful Contractors Do The Exact Opposite Of Poor Contractors
The First Place to start is to understand how The 80/20 Rule applies to your construction
company. It simply states that the top 20% of your clients generate
80% of your profit and the bottom 80% of your customers generate
only 20% of your construction company profits.
It Stands To Reason if you want to more cash flow and profits and
more freedom in your life you would copy the operations of highly
successful and very profitable contractors.
They outsource as much as possible especially
their Contractor Bookkeeping Services Needs so they
can focus on finding and satisfying the needs of high-value,
high-profit clients and leave the price shoppers, tire kickers,
carpet pilots and web-surfers to the poor dumb contractors who
prefer to work hard rather than smart, do everything themselves and
end up wasting their lives in pain and misery.
Successful Contractors - Have a comprehensive demographic
and psychographic profile of their high profit prime client.
They focus on acquiring more high profit prime clients and
finding new and better ways to satisfy their high profit prime
clients wants wishes, desires and needs.
Poor Contractors - Take whatever comes their way because they don't
have a profile of their clients let alone a marketing budget so
they get trapped with the leftovers and price shopper
customers.
Successful Contractors - Focus 80% of their time and effort on
increasing revenue and 20% on cutting costs. They outsource
whatever is not in their core competencies or those things only
they can do that provided value to their clients and generates more
cash flow and profits.
They hire $25 an hour people to do $25 an hour work in their
construction company and focus their time and efforts by earning
$250 an hour working on their construction company developing
strategy and marketing to find more high-profit clients.
Successful Contractors Outsource:
> Oil change services on their vehicles
> Changing tires, batteries and other vehicle repairs and
maintenance
> Office machines repairs and maintenance
> Bottled water deliveries rather than sending someone to the
store
> Cell phone service rather than relying on public pay
phones
> Contractor Bookkeeping Services rather than
rely on in-house bookkeepers or worse yet their
spouse
Poor Contractors - Focus 80% of their time and effort on
cutting costs and getting "deals" and 20% on growing revenues and
doing as much as possible themselves. They try to save money by
doing $10 an hour work in their construction company rather than
earning $250 an hour working on their construction company.
Poor Contractors Do Not Outsource:
> Oil change services on their vehicles
> Changing tires, batteries and other vehicle repairs
and maintenance
> Office machines repairs and maintenance
> Bottled water deliveries because they would rather go to the
store
> Contractor Bookkeeping Services rather they
rely on cheap bookkeepers or worse yet their spouse
Successful Contractors - Know from reviewing their performance
reports and consulting with their Construction Accountant exactly
their staff members from the laborers to the Project Managers add
more value than they cost. They know what Ten Minutes Waste Cost Their Contracting
Company which is why they provide the right tools, equipment,
processes and procedures to get every project done in the most
efficient, effective way, at the least cost while maintaining high
standards to avoid costly re-work and warranty work And they always
get paid for all change orders!
Poor Contractors - Feel that all staff members from the laborers to
the Project Managers need to hustle and run everywhere and if they
are giving less than 110% to the job they are not doing enough are
costing more than they are worth. The root cause is their staff
does not have the right tools, equipment, processes and procedures
and in fact are always operating in a chaotic, neurotic work
environment where the commonly heard phrase is "WE NEED TO GET
ORGANIZED!" And they get paid for all change orders!
Successful Contractors - Make sure everybody knows they are
appreciated and each individual is an important, integral part of a
team. They are recognized as people with special skills and talents
which makes everyone comfortable and less likely to search for
another job elsewhere. They always make it clear that "Kindness is
not Weakness"
Poor Contractors - Like to make sure everybody knows they can be
replaced at any time day or night which makes people uncomfortable
and likely to search for another job elsewhere. If someone wastes ten minutes a day on your
payroll click here to see what it could be costing
you!
Successful Contractors - Treat their tax preparer, banker,
construction accountant, suppliers, construction attorney,
financial planner, Board of Advisors, vendors, bookkeeper and
everyone they come in contact with respect and kindness which
causes them to get good service, special breaks and favors which
results in more cash flow and profit.
Poor Contractors - Treat their tax preparer, banker, construction
accountant, suppliers, construction attorney, financial planner
(what should have been his Board of Advisors) vendors, bookkeeper and
everyone they come in contact with like an enemy they are likely to
lose money due to bookkeeping errors, slow service and general lost
time.
If Your Construction Company Profits - Averaged less than 10% each
year over the past five years you may want to call Sharie
206-361-3950 for a no-charge consultation. In addition you may want
to look at the Business Strategy Program.
We Have Hundreds - Of fast, easy and safe ways that can increase
your company profits and put more money in the bank to operate and
grow your business. It is all about having a Strategy That Works!
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 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.
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