May 13, 2016
Starting And Building A Construction Company Is Brutal Not Just Hard!
There are a great number of "Threads Of Success Weaved Into The Fabric Of All Successful High-Profit Construction Contracting Companies" and I am going to share four of them with you.
#1 Successful High-Profit Contractors Limit Their Risk
Jeff Bezos, Amazon founder and CEO, nailed the subject of risk when he explained that entrepreneurs should not be risk-seeking. They should focus on limiting risk.
One of the biggest ways to reduce risk in your Contracting Company is by validating the need for your service.
If you are new in business join your local trade associations, for example, Master Builders Association and attend a few meetings and take some classes.
Develop your Unique Selling Proposition (U.S.P.) the one thing that you do better than anyone else in your Geographic and Psychographics Target Market. Try selling your contracting services to a potential customer. Going through this process will help you refine your Value Proposition.
Develop your systems using M.A.P., not P.A.M. so that you can be prepared for the bumps in the road that can (and will most likely) occur. Always remember the five Ps: Prior Preparation Prevents Poor Performance.
Use O.P.M (Other People's Money) by getting job deposits and regular progress payments. Stop borrowing money at 18% and lending it at 0% see https://www.fasteasyaccounting.com/contractor-not-a-banker to learn more about how to be a Contractor not a lender.
#2 Successful High-Profit Contractors Have A Prime Client Profile
Most Contractors fail because they run out of cash not because they didn't know their trade. If we peel the onion back, it comes down to not understanding who their Prime Client is and how to reach them. This is something successful small Contractors do regularly as clockwork.
Do the research and if you have a Construction Accounting Service get them to help you find the top 20% of your clients that generate 80% of your cash flow and profits. This is an ongoing process that takes time, patience and research. It is vital to figuring out how to market your Contracting Company.
#3 Successful High-Profit Contractors Are Organized
As Alan Lakein said, "Failing to plan is planning to fail." The most successful small Contracting Company Owners are on top of it.
They have their team organized, their financial documents organized and they have their priorities organized.
There will always be fires to put out because that is the nature of running a Contracting Company. The most successful Contractors work endlessly to stay organized. This ensures the fires aren't a major distraction to their long-term goals.
Lastly, the organization has long been a tenet of successful High-Profit Contractors like you. If you’re still unconvinced, look at the word organization. It’s literally right there in the word. You wouldn’t go work for a disorganization, would you?
#4 Successful High-Profit Contractors Are Adaptable And Nimble
In a fight between a big guy and a little guy, we tend to think of the little guy as being nimble. Small contractors have the same advantage.
Medium and large Construction Companies tend to have extremely high long-term fixed costs. This makes them slow to change direction. Whereas, small Contractors have the advantage of being able to change direction quickly.
If their product or service isn't selling as well as expected, they can shift their focus. This concept applies to hiring too! A nimble small Contracting Company can pick and choose the best of the best Construction Workers to staff up as and when you need to.
We certainly tip our hats to small Construction Company Owners everywhere. Hopefully, "Threads Of Success Weaved Into The Fabric Of All Successful High-Profit Construction Contracting Companies" will provide value to you as you draw on them for your Construction Company and for your clients. Here’s to thriving!
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 firstname.lastname@example.org
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
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.
Randal DeHart | Contractors Accountant