Do You Really Understand the Financial Position of Your Construction Contracting Business?

 

 

If you’re like many people who own construction contracting and service businesses, you likely have little to no financial training. That’s OK, you probably have a slew of other skills which allowed you to move into the realm of business owner.

It is also likely that you put a lot of time and thought into knowing where your crews are, what they’re doing, and which tools and supplies they’ll need for the day. Yet, you may be less likely to know where your dollars are, what job each dollar has, and how well they’re pulling for the team.

Run a better construction contracting business

While business management is a multi-faceted matter, one of the best ways you gain acumen in the business world is to know and understand how to make best use of the money you control. You know you’re “getting it” when you can:

  • Grasp the benefits of Job Costing

 

  • Discern the difference between Revenue and Gross Profit

 

  • Recognize the importance of Document Management

 

  • Increase your savvy in the Budgeting department

 

  • Focus on the Important Data

 

Getting to the money matters part of accounting means you can know (not just guess) when to put your marketing dollars to use or which types of jobs will never be your friend. It means you can make sense of what was once a whirlwind of numbers and terminology.

Why build your money management skills?

Develop your money management expertise so you can help your construction contracting or service business prosper. When you see where your company’s money is actually going, you’re better able to build a path toward success.

How Schulte and Schulte fits in

Our goal is to assist you in creating an easy to follow and understand bookkeeping process. Further, we explain what is happening along the way, giving you the benefit of discerning your financial standing and taking advantage of that knowledge.

Let’s build this together. Call 480-442-4032 or get in touch here.

10 Personal Tools Every Construction Contractor Needs

I’ve discovered Construction Contractors and Subcontractors are among the most adept and proficient folks around. They wear such a profusion of hats (skilled tradesman, project manager, marketer, salesman, HR manager, supply-chain manager, customer-service representative, PR manager) it can be mind boggling.

Yet there are 10 Personal Tools they need to use no matter which hat they happen to be wearing at any given time.

The quality traits (tools) of excellent construction contractors

  1. Planning Ability

Simply determining to begin a business built on your skill set as well as your desire to learn more about what it takes to “be in business” is a great start. At every turn, your ability to plan and prepare for what is coming down the road will make a difference in how you manage, build, and maintain your business.

  1. Strong Work Ethic

You have to have a ton of ambition. It goes beyond just getting up every day and going to work. You actually enjoy fixing the problems that arise. And you’re actively looking for more jobs which mean you have more problems to solve.

  1. Strong People Skills

You not only have to manage the guys and gals in the field and office, you also have to work with the customer – who can range from general contractors to home owners and anywhere in between. You’re also good at letting other people’s strengths shine through.

  1. Confident

You have to remain confident in your overall ability to complete the many tasks at hand. That doesn’t mean you think you can never make a mistake. It does mean you’re sure you’ll be able to learn from those mistakes and continue moving forward.

  1. Open Minded

Going hand-in-hand with your ability to remain confident is your ability to remain open minded when new ideas, new concepts, and new means to accomplish a task are presented to you. You’re willing to weigh the evidence before making a final decision.

  1. Money Management Skill

When capital is limited and needs to be utilized wisely, you know how to manage for right now while still planning for the future. You know how to keep a handle on cash flow and how to use financial reports for building your business.

  1. Networking Ability

You’re a relationship builder. You pay attention to what others tell you. You’re willing to help others even when it doesn’t seem there will be a quid pro quo. You make others feel at ease when they’re around you.

  1. Delegator

Even though you likely began your construction contracting business wearing a multitude of hats you know when to give one or more of those hats to others. You know how to give people a task to complete without micro-managing how they complete it.

  1. Risk Taker

You understand that taking a risk is the only way to move forward. You look at all the ways you can think of to mitigate the risk, you take those actions, and you still know that failure is possibility.

  1. Integrity

Honesty and trust are central to your integrity. You demonstrate your integrity by being trustworthy and dependable. You are principled and can be counted on to behave in honorable ways even when no one is watching.

Stocking your tool box

Having as many of these tools as possible in your personal tool box will make your job as a construction contractor flow better. You may not have every single tool in this list shined and ready to use. But, if your desire is to scale your construction contracting business then you’ll discover these are personal traits or qualities that will work well for you now and in the future. If you find you have personal weak points, be sure to surround yourself with folks who are strong in those areas. Some things you should consider are: hire a business coach, seek a mentor, outsource some areas, look for qualified advisors, build a good team.

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Why yes, Schulte and Schulte, LLC is a great option for your bookkeeping and accounting outsourced needs. And by golly, we’re team players. Give us a call 480-442-4032 or toll free 866-629-7735