There is no better time to reflect and think seriously about your construction business. Excellent organization systems add considerable value to any business because they allow you to spend more time working on your business rather than on it.
Year over year and regardless of the economy, one thing never changes; 20% of the contractors earn and keep 80% of the profits because they have a Business Process Management Strategy like our Contractors Success M.A.P. that tells them how, what, when, where and why to focus their limited resources on the M.A.P. = Marketing / Accounting / Production.
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Topics:
The Contractors Account,
Construction Marketing,
Construction Accounting,
MAP vs. PAM,
contractors bookkeeping and accounting,
Accounting Software for Contractors,
Contractor,
Construction Productivity
At some point, every business owner needs outside help to improve efficiency – or to free up their time so they can take steps toward future growth.
The trouble is, the cost of hiring regular staff, even on a part-time basis, can eat up a company's budget – especially in the early years when you're still just finding your feet.
The rise of the remote freelance worker (otherwise known as the "gig economy"), especially during this time, can offer construction business owners a simple, cost-effective solution when they need extra help with a one-off "gig" or short-term contract.
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Topics:
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity,
Construction Workplace
(Note: We are tracking the latest construction industry news and online resources for contractors in time of COVID-19)
The success of any business, large or small, depends considerably on nurturing an efficient, productive workplace.
Some contractors and construction company owners believe in maximizing production by driving everyone from the laborers to the Project Managers to work harder, longer, faster, hustle, and run. And if they are giving less than 110% to the company, they are not doing enough.
While improving employee productivity should always be a priority when the ultimate goal is a sustainable and profitable business, the process is easier said than done.
Below are some of the most effective methods of managing a productive, happy workplace while increasing output:
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Topics:
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity,
Construction Workplace
Hiring an accountant is widely considered best practice for small business owners. But delegating financial analysis and reporting doesn't mean thoroughly checking out of the process each month or quarter. On the contrary, it's recommended that business owners work closely with their accountants throughout the year to better understand their financial position and make smart plans for future growth.
We have discussed time and again the importance of knowing the difference between Construction Accounting and Regular Accounting. For the sake of our new readers, blog subscribers, and podcast listeners, I'll be providing you with some basic accounting knowledge so you can have more informed, insightful discussions with your financial advisors before the year ends.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Many complex moving parts are involved in operating a profitable construction company, but at its core, business success hinges on just one thing: customer relationships.
This is why Customer Relationship Management software is vital for contractors who want to grow their business.
A CRM solution helps your construction company nurture and improve client relationships by maintaining centralized data on all your leads and existing clients. With access to a history of customer transactions and communications, your team can make their next move with confidence while offering highly personalized customer service.
Construction business owners know that to find a loyal client base, they have to stand out from their competitors. One of the best and easiest ways to do that is to have outstanding customer service. How you treat your customers reflects your entire business. People think positively about companies that treat their customers and clients well.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Be honest: is email helping or harming your construction business?
Remember when email was new and novel, and everyone thought it would vastly improve communication while freeing up time? It did improve communication - especially in the construction industry, where you have a team working on the field and in the office - on some levels, and freed up employee time at first. Now, however, email has become a productivity killer.
Construction business owners and workers have to wade through hundreds of emails in their inbox each day. Many contractors working on-site, choose to deal with email as it comes in rather than all at once. This takes the focus off their work and makes it difficult to concentrate on their tasks.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Accounting has two sides:
Internal Accounting (Management Accounting) - for making money. Its purpose is to help you operate and grow your business profitability.
External Accounting (Tax Accounting) - for paying taxes. Its purpose is to prepare tax forms, report your income, and make sure you pay your fair share of taxes.
Understanding the difference will impact your company's financial health and wealth. Both groups of accountants must know the relationship between your internal bookkeeping and the Internal Revenue Service, and the importance of paying the right amount of taxes. There are a lot of professional bookkeepers, accountants, and tax preparers and they all serve a different role in your business.
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Topics:
Contractor Sucess,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
There is a thread of success weaved into the fabric of the most successful, wealthiest, consistently most profitable house builders, general contractors, residential remodel contractors, flipper house contractors, commercial tenant improvement contractors, sub-contractors, specialty contractors, handyman, architects and designers and over 100 other types of contractors and construction-related companies - they adapt to a continually changing environment.
Everything in the Universe is in balance, and parts of it are easy to see and understand and some parts are hidden in plain sight and require some effort to see and understand. Your ability to look beyond the initial statement and understand the hidden meaning why successful contractors adapt to change to survive and thrive will serve you well. The truth is the most successful, wealthy, highly profitable construction contractors don't like change.
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Topics:
Contractor Sucess,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Job Costing, in its simplest terms, links the money you spent on a job against the money you received to do a particular job. It is the process of tracking all the costs related to a project to determine its profitability.
A common misconception is that Job Costing is only for large contractors with a dozen employees. Since keeping track of all costs and expenses involves a lot of additional work for contractors and field workers, and most construction company owners do not see an immediate benefit, some contracting businesses still haven’t implemented Job Costing procedures despite the financial risks.
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Topics:
Job Costing, Job Costing Reports,,
Contractor Sucess,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Our winning strategy talks about Marketing as the foundation, Accounting as the center of your construction business, and Production where the rubber meets the road, or if you please, this is where all the planning and support structure pays off.
Some contractors and construction company owners believe in maximizing production by driving everyone from the laborers to the Project Managers to work harder, longer, faster, hustle and run. And if they are giving less than 110% to the company they are not doing enough. You may have different opinions on this but one thing I've learned from experience is that construction meeting process increases productivity.
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Topics:
Contractor Sucess,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
