Sep 20, 2024
This Podcast Is Episode 594, And It's About Crafting Your "To-Don't" List As A Construction Business Owner
Your to-do list is often long and constantly growing longer
when you're an entrepreneur. There are a lot of things you need to
do, and it can feel like they're all urgent. In such cases, it's
easy to push essential tasks to the side and focus on less vital
activities, but that often means you miss deadlines, make mistakes,
or always feel like you're trying to catch up.
Here are some ways to determine the most productive order to
complete your tasks.
1. Know all of your
tasks
It isn't enough to have a running list of tasks in your head;
you need to write them out so you can see them at a glance. Take
the time to list all your tasks, and break down large tasks into
smaller steps.
Write a list of the activities you must do for the week—or
even the next two weeks—on Monday morning. Include information such
as how urgent they are, how long they'll take to complete, and
their deadlines.
Now you know what you'll need to complete and when.
2. Determine what tasks
are vital
There are many methods for determining which tasks are the
most vital. We'll go into the Eisenhower Decision Matrix and the
ABCDE Method.
In the Eisenhower Decision Matrix, you classify each task into
one of four quadrants. These quadrants are based on whether the
task is important, urgent, or neither. Tasks that are important and
urgent should be done first, followed by those that are either
important but not urgent or urgent but not important, and finally,
those that are neither important nor urgent. If possible, delegate
tasks that aren't both important and urgent to someone else.
Another method is the ABCDE method, in which you assign each
task on your list a letter from A through E based on its level of
importance. Tasks with a level of A or B are the most important,
while D and E are unnecessary. Anything from C down can likely be
rescheduled or delegated to someone else.
3. Schedule your
tasks
Now that you know which tasks are the most important, schedule
your to-do list in that order. Write yourself a daily list that
puts the most critical functions at the start of your day. Don't
overschedule yourself, though. After all, there's a good chance
that a new, essential, and urgent activity will arise during your
week, and you'll need the space in your calendar to address
it.
Give yourself deadlines in the day to get the work done based
on a reasonable assessment of how long the activity should take
you. You can also chunk your work, setting aside specific,
uninterrupted periods to do focused work and then scheduling breaks
around that. Ensure you turn off distractions and let your
colleagues know you aren't available during those times.
As a construction business owner, consider outsourcing various
operations to improve efficiency and focus on core business
functions. Some tasks that can be written down under your "To-Don't
List" and outsourced include:
1. Accounting and Bookkeeping: Hiring a
professional accounting firm can help manage your finances, provide
accurate financial statements, and ensure compliance with tax
regulations.
2. Project Management: Outsourcing services
can help streamline construction projects, ensuring they are
completed on time and within budget.
3. Marketing and Advertising: Working with a
marketing agency can help promote your construction business,
generate leads, and enhance your online presence.
4. IT Support: Tech services can ensure your
technology infrastructure is well-maintained and secure, allowing
you to focus on your construction projects.
5. Legal Services: Hiring a legal firm
specializing in construction law can help protect your business and
navigate complex legal matters.
6. Human Resources: They can assist with
recruitment, payroll, benefits administration, and compliance with
employment laws.
As a short reminder that you can ponder on:
To-Don't List for
Construction Business Owners
- Don't ignore safety protocols and regulations
- Don't neglect regular equipment maintenance
- Don't overlook obtaining the necessary permits and licenses
- Don't avoid clear and detailed contracts for projects
- Don't skip regular communication with clients and employees
- Don't disregard the importance of staying updated on industry trends and technology
- Don't underestimate the importance of accurate and timely financial record-keeping
- Don't hesitate to seek professional advice when needed
Outsourcing bookkeeping and accounting can offer
significant benefits to construction contractors.
Here's why it's essential to consider adding these
tasks to the to-don't list:
1. Expertise and
Compliance: Navigating the complexities of
construction accounting requires specialized knowledge. From job
costing to progress billing, having professionals who understand
the industry's intricacies is invaluable. Outsourcing ensures
access to experts who comply with industry-specific regulations and
standards.
2. Time and
Focus: Managing bookkeeping and accounting in-house
demands time and attention that could be better directed
toward core business activities. By outsourcing these tasks,
contractors can refocus on project management, client
relationships, and business growth, ultimately increasing
productivity and efficiency.
3.
Cost-Effectiveness: While some might perceive
outsourcing as an added cost, it can be a cost-saving measure in
the long run. By avoiding hiring and training in-house accounting
staff and investing in accounting software and infrastructure,
contractors can achieve significant cost savings by
outsourcing.
4. Scalability and
Flexibility: As construction businesses fluctuate
with project demands and seasonal variations, the scalability and
flexibility offered by outsourcing are invaluable. Whether managing
peak periods or adjusting to business contractions, outsourced
accounting services can adapt to the contractor's needs.
5. Reduced Errors and
Risk Mitigation: Bookkeeping and accounting errors
can have costly implications for construction contractors.
Outsourcing to professionals reduces the risk of mistakes, ensures
accurate financial records, and mitigates potential risks
associated with economic mismanagement.
In
conclusion
As construction contractors like you craft your to-do lists,
you should also consider the tasks that belong on the to-don't
list. Outsourcing bookkeeping and accounting offers a strategic
advantage, providing access to specialized expertise, freeing up
time and focus, and delivering cost-effectiveness, scalability, and
risk mitigation. By recognizing the value of outsourcing in these
critical areas, you can position your business for tremendous
success and growth.
Remember, these "to-don'ts" are as important as the "to-dos"
for a successful construction company.
About The Author:
Sharie DeHart, QPA is the co-founder of Business
Consulting And Accounting in Lynnwood, Washington. She is the
leading expert in managing outsourced construction bookkeeping and
accounting services companies and cash management accounting for
small construction companies across the USA. She encourages
Contractors and Construction Company Owners to stay current on
their tax obligations and offers insights on how to manage the
remaining cash flow to operate and grow their construction company
sales and profits so they can put more money in the bank. Call
1-800-361-1770 or sharie@fasteasyaccounting.com