Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services-logo

Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

Business

Back office support can make or break your contracting company. Let us move your contractor bookkeeping service off the roller coaster of pain onto the merry go round of peace of mind with our U.S.A. based outsourced contractors bookkeeping services and contractor success M.A.P.

Location:

United States

Description:

Back office support can make or break your contracting company. Let us move your contractor bookkeeping service off the roller coaster of pain onto the merry go round of peace of mind with our U.S.A. based outsourced contractors bookkeeping services and contractor success M.A.P.

Language:

English


Episodes

577: The Secrets To Stellar Client Service In The Construction Industry

3/15/2024
This Podcast Is Episode 567, And It's About The Secrets To Stellar Client Service In The Construction Industry Customer service is the heartbeat of any successful business. The unsung hero transforms a potential disaster into an opportunity and a mere transaction into a lifelong relationship. In the narrative of customer loyalty and retention, service is the protagonist. Your approach to customer service has the power to attract and retain clients. As a construction business owner, client service is critical to your company's success. It is essential to understand what your clients want and how you can provide the best service possible to meet their needs. Why stellar customer service is key The importance of customer service for loyalty and retention cannot be overstated. Positive experiences build stronger emotional connections with customers, leading to repeat purchases or the client hiring you again, enhanced brand loyalty, and positive word of mouth. Stellar customer service is the hallmark of success in a booming digital economy. If you have a website or are marketing your trade business online, you are part of this, or you use platforms where competitors lurk one click away. One of the most critical aspects of client service is communication. It would be best if you communicated effectively with your clients to understand their requirements, provide updates on the project's progress, and ensure they are satisfied with the work. You should also be responsive to their queries and concerns and provide timely and transparent information. Another crucial factor in client service is managing expectations. It is vital, to be honest and realistic about what you can deliver and to ensure that your clients understand what they can expect from you. This will help avoid misunderstandings and ensure your clients are happy with the result. Good Customer Experience is Key A recent Zendesk report found that 3 in 4 consumers are willing to pay more for good customer service. This is a clear signal that in a market cluttered with varying product specifications, prices, and services, customer experience can be the factor that differentiates you from the competition. Retention Customer retention is cost-effective (five to 25 times less expensive than acquiring new customers) and promises a more predictable revenue stream. As a business, your job doesn't end at the point of sale—it means nurturing and retaining your customers. Crafting your customer service strategy Mastering the art of customer service requires a well-rounded strategy. Let's break it down: Excellence breeds loyalty When you deliver exceptional service, you invite customer loyalty, which fuels a positive cycle of customer lifetime value. From thank-you notes to responsive support, every interaction is an opportunity to reinforce a customer's decision to choose your brand. Accessibility is vital Clients shouldn't need a treasure map to find your service. Information, contact details, and assistance need to be at their fingertips. Accessibility is paramount through a user-friendly website, a seamlessly integrated app, or a robust social media presence. The power of empathy Empathy is the currency of customer service. It's walking in your client's shoes, understanding their pain, and making it suitable. An empathetic approach can turn a disgruntled customer into a brand advocate. Metrics You can't improve what you don't measure. Customer satisfaction metrics like Net Promoter Score (NPS), customer effort score, and customer satisfaction score are valuable tools to provide insight. Customer Service in Practice: Tools and Techniques It's time to delve into practical customer service applications. 1. Omnichannel Customers are diverse, and so are their preferred service channels. From social media to chatbots and the phone, an omnichannel approach ensures that customer service is available and tailored to meet them where they are. 2. Proactive...

Duration:00:12:32

566: Marketing Your Construction Business- How To Make It Work For You

3/8/2024
This Podcast Is Episode 566, And It's About Marketing Your Construction Business: How To Make It Work For You Marketing your construction business is crucial for its growth and success. You can use various strategies to promote your business, such as creating a website, networking, social media marketing, and advertising. Additionally, sponsoring events and collaborating with other companies can help you reach a wider audience. I understand how daunting it can feel for construction business owners like you; we've been there. Whether you're new to the game or have been in business for a while and haven't quite cracked the code, navigating the marketing world can be overwhelming. But it doesn't have to be. Your business deserves to be seen, heard, and thriving—with the proper guidance, you can make marketing work for you. Let's unravel the puzzle, starting from square one. 1. Defining your target audience Know thy client: the key to tailored marketing. Before you shout your brand from the rooftops, you must know who you're calling to. Understand the demographics and psychographics of your ideal customer. Are they young professionals, parents, or retirees? What problems do they face that your product or service can solve? The better you know your customer, the better your marketing will resonate. 2. Uncover data gold with market research Don't rely on guesswork. Dive into market research — it's how you find the "who" and the "why" of your business. This doesn't have to be a complex, expensive ordeal. Start with online surveys or asking family, relatives, and friends in your neighborhood, as well as interviews, social media insights, and competitor analysis. The information you gather here will be invaluable. 3. Set clear goals that spark direction The beacon of your marketing journey Without clear objectives, your marketing can feel scattered, like throwing darts in the dark. Your goals should be specific, measurable, attainable, relevant, and time-bound (SMART). Are you aiming to increase website traffic by 30% in six months? Or boost sales by 15% at the end of the year? These goals keep you focused and make success less vague. 3. Develop a marketing strategy Mapping out your move Once you've defined your target audience and your goals, it's time to set your marketing strategy. Your marketing strategy is the "how" behind your goals. Identify which channels your audience frequents. If you're targeting working millennials, perhaps Instagram is for you. A well-thought-out marketing strategy aligns your business objectives with the most effective messaging and channels. 4. Consistency is king Branding isn't just a logo or a tagline. It's the sum of all your customer interactions and experiences with your small construction business. Create a content calendar to ensure your brand is visible across all marketing platforms and your message remains consistent. This calendar should include blog posts, social media content, email campaigns, and any other touchpoints relevant to your audience. 5. Crafting compelling content The art of the story Your content should inspire, educate, or entertain — ideally, all three. Write as if you're speaking to a friend, addressing their problem with your service as the solution. Your content is the thread that weaves your story with your customers. Remember, compelling content isn't just about words. Images and videos can support your message. Visuals – the silent sway Humans are visual creatures. In fact, 90% of the information transmitted to the brain is visual. High-quality, eye-catching images and videos can convey your message faster and stickier than words alone. Share photos of your "before and after" service provided or a video demonstrating its benefits. The more senses you engage, the deeper your marketing will resonate. 6. Execution and monitoring: making it happen and seeing it through Take the plunge It's showtime! Execute your marketing plan...

Duration:00:11:29

565: DIY Construction Accounting Errors And Ways To Improve Your Practices

3/1/2024
This Podcast Is Episode 565, And It's About DIY Construction Accounting Errors And Ways To Improve Your Practices Many small construction business owners tend to handle their accounting and bookkeeping, especially when they've just started. However, keeping track of the finance side of the business– everything from income to expenses to tax compliance– can be overwhelming. Mistakes can happen quite quickly and can have costly consequences for your business. Below are five of the most common Do-It-Yourself accounting errors you should avoid. 1. Unorganized Records It takes excellent organizational skills to do your bookkeeping and accounting right. You must record every transaction, keep receipts or digitize them for future reference, calculate taxes accurately, and more. If your records are not kept organized and updated, you'll likely miss something, which could get you into trouble during the tax season. 2. No Accounting Schedule As a construction business owner, there are many other things you need to attend to, and accounting can easily be pushed to the bottom of your seemingly endless To-Do list. Yet, setting an accounting schedule to add your recent income and expenses into your records is extremely important. If daily updating is not possible, at least dedicate some time once a week to do your accounting. 3. Unreconciled Accounts Regularly check if your bank account reflects the same balance as you record your cash flow and other financial data in your books. If you find a gap, there is likely a mistake somewhere that you need to find or even a fraudulent transaction. Taking immediate action will help you prevent worse problems further down the line. 4. Failing to Take Into Account Small Transactions It can be easy to forget about minor transactions, such as the office supplies you picked up on your way to the office or the freebie you sent a loyal customer. However, no matter how small you think the transaction is, keeping a record and getting a receipt is essential. In case of a tax audit, you will need to be able to present records of ALL business expenses, even these small ones. 5. Not Backing Up Data and Using Accounting Software Imagine if the laptop where you store all your financial data was stolen, lost, or broken beyond repair, and you don't have a backup. You need to redo everything from scratch, which could be a massive waste of time. If you're still using a spreadsheet or paper ledger to keep track of your business finances, you might consider upgrading to a cloud-based accounting software such as Xero or QuickBooks. By migrating to the cloud, you can easily back up your accounting data and access them wherever and whenever necessary. These cloud-based accounting systems integrate well with your bank account and other valuable construction business apps. The results are streamlined processes, less manual work, enhanced efficiencies, and better overall business performance. Spend Less Time on Your Books and More Time on Your Business While being aware of these common accounting mistakes could help you avoid them, the most convenient and efficient way to stay on top of your business finances is to entrust your accounting to the experts. Our team of experienced accountants can integrate the most suitable cloud accounting software for your business and even train your in-house staff on its proper implementation. I admit that small business owners - like myself have learned to make the most of our resources. As an entrepreneur, I tend to take on the challenge of wearing multiple hats, managing your business, answering phone calls, responding to emails, and scheduling appointments. However, I am reminding you now that being a construction company owner and doing your accounting and bookkeeping requires a different skill set from being a construction expert in your field. When it comes to your financials, it would be wise to take a step back and let someone specializing in bookkeeping do it...

Duration:00:12:30

564: Common Construction Business Pitfalls And How To Overcome Them

2/23/2024
This Podcast Is Episode 564, And It's About Common Construction Business Pitfalls And How To Overcome Them Construction Company owners like you have probably experienced life-changing events in the past few years, as many of our clients did. Are you struggling to keep your construction business afloat? Do you find yourself facing the same issues over and over again? It's common for construction businesses to meet various challenges, but if you're not addressing them properly, they can quickly become pitfalls. 1. Poor Cash Flow Management One of the biggest challenges for construction businesses is managing cash flow. You need cash to buy materials, pay workers, and keep your business running. However, you may be in a cash crunch if you don't correctly deal with your cash flow. To avoid this, you should create a cash flow forecast and regularly update it. This will help you anticipate cash flow issues and take steps to address them before they become a problem. 2. Failure to Adapt to Market Changes The construction industry is constantly changing, and if you don't adapt, you may struggle to keep up with the competition. For example, if new regulations are introduced, and you don't adjust your business practices to comply with them, you may lose out on business. Keep an eye on industry trends and be willing to adapt as needed. 3. Poor Project Management Construction projects are complex and require careful planning and execution. If you don't manage your projects correctly, you may experience delays, cost overruns, and other issues. Ensure you have a solid project management plan and that everyone on your team understands their role. 4. Lack of Communication Communication is vital in any business but especially important in the construction industry. Your team must communicate effectively to ensure projects are completed on time and budget. Ensure everyone on your team understands the importance of communication and has the tools they need to communicate effectively. 5. Failure to Invest in Technology Technology is transforming the construction industry, and if you're not investing in it, you may fall behind. For example, construction management software can help you streamline operations, reduce errors, and improve communication. Explore the different types of technology available and determine which can help you run your business more efficiently. 6. Not Delegating/Outsourcing Tasks As much as we all might like to think of ourselves as superheroes who can handle anything and everything, the truth is that we're all human. Sometimes, even the most capable among us need a little assistance, and that's nothing to be ashamed of. Knowing when to delegate tasks can be one of the most important skills you can develop as a leader or even a responsible adult. Knowing when to ask for help – whether from family members, friends, co-workers, or specialists – can save you time, reduce stress, and improve the quality of the result. So, if you feel overwhelmed by a project or task, don't hesitate to ask for help. It might just make all the difference in the world. 7. Listening to Bad Advice When you're a small construction business owner, you get used to people giving you advice. While the advice is almost always well-intended, it's not always good. These are usually the top two tips that well-meaning people give to construction business owners: Never turn down a paying customer Money is a good thing. But that doesn't mean you should say yes to everyone who enters your door. Not every person who approaches you is suitable for your business. If your gut tells you something is off—maybe the person is very demanding or constantly questions your prices—it's in your best interests to say no. It's not necessarily about the client, either. You might be very busy, and taking on another project means you'll give them subpar service or use your valuable personal time. If possible, turn them...

Duration:00:10:58

563: Unlocking New Construction Clients And Markets

2/16/2024
This Podcast Is Episode 563, And It's About Unlocking New Construction Clients And Markets For a business to thrive and grow, it needs a strategic plan and the ability to find new customers and continually tap into promising markets. However, this can be easier said than done in a highly competitive trade industry. With time, the quality of your work will speak for itself, which is the most valuable testimonial of all. While your good reputation preceding you is undoubtedly essential, there are a few other ways that you'll want to market your services to ensure that you have a steady stream of work. The untapped potential in existing markets Start by re-evaluating your existing customer base. Profiling them will help you more accurately define your target consumers. Strategic Marketing is essential for any business to attract new clients, and the construction industry is no exception. Effective marketing strategies can help you reach your target audience and showcase your expertise. Some of these include: Utilizing Social Media to showcase your work and attract new clientsCreating a professional website to showcase your services and expertiseUsing Search Engine Optimization (SEO) to improve your local online visibilityEmail marketing to stay in touch with potential clients and promote your servicesAdvertising in local newspapers, magazines, or on radio or podcasts.Appear in directories: Ensure your business is on relevant trade directories in your area. Personas: your marketing's best friend Personas bring your target customers to life. If your service's ideal customer is a 40-year-old stay-at-home mom and a husband in the tech industry looking to update their kitchen, create a detailed profile reflecting their lifestyle, income, concerns, educational background, and other key demographics. The deeper your understanding of your target customer, the easier it will be to find others who fit the same profile. Expanding your business horizons Look at where your customer personas are located. Could different geographical regions hold potential for you? If so, conduct thorough consumer demand research in these locations. If the demand is significant, devise a strategy to serve these customers. This could mean extending your services to locations outside your city if the project will pay well. Integrating vertically or horizontally Depending on your current position in the market, you might find opportunities to expand by buying out competitors or partnering with complementary businesses to increase your reach and customer base. Networking can help you build relationships with potential clients and other businesses in your industry. Attend industry events, join local business associations, and participate in community events to build your network You can also consider partnering with other businesses or contractors to expand your reach and attract new clients. The digital landscape: have an online presence A robust website or a business page is a valuable way to reach more clients. A responsive website design could be beneficial if your business customers mostly found you through a Google search on their phone (that's why it's essential to ask how they found you during your first chat). Your website is your storefront, so make sure it's professional, easy to navigate, and highlights your services and expertise. Increase visibility in the real world Make sure your construction business's name and logo appear on any equipment you use, and make clothes for yourself or your crew to wear when they're out and about in the world. It may be smaller than a billboard, but driving and walking around letting people know who you are, what you do, and how to contact you will go a long way to marketing your trade business. If people become familiar with your business name, they'll likely turn to you when needed. Analyzing your competitors It's essential to know what your competitors are doing. By researching their...

Duration:00:11:09

562: Improving Productivity And Leadership Mentality As A Contractor

2/9/2024
This Podcast Is Episode 562, And It's About Improving Productivity And Leadership Mentality As A Contractor As a construction business owner, improving productivity is essential to your company's success. But you may often find yourself pulled in different directions by competing responsibilities. At some point, we all experience that. Classifying tasks and tackling the most time-consuming ones can feel daunting. But why is it so hard for us to start – or even finish – seemingly insignificant tasks? Why do these tiny tasks become the bane of our existence, tempting us into procrastination limbo? Let's explore why we get stuck on even the most minuscule duties and how that might hold us back. Understanding the psychology behind procrastination Procrastination plagues many people. It's a common problem that often leaves people feeling frustrated with themselves. But what if we could understand the psychology behind procrastination and use that knowledge to overcome it? At its core, procrastination is linked to negative emotions like stress, anxiety, and fear of failure. By avoiding or delaying a task, we temporarily alleviate these unpleasant feelings. However, this relief is short-lived and ultimately only creates more stress. By being aware of this pattern and learning how to manage negative emotions, we can break free from the cycle of procrastination and become more productive. Breaking down the task into small, manageable parts When faced with a daunting task, it can feel overwhelming even to know where to start. However, the key is often found in breaking down the task into small, manageable parts. By dividing larger projects into smaller, more achievable tasks, we can focus our attention and energy on one step at a time, leading to a greater sense of progress and accomplishment. Whether working on an estimate on a project or a personal goal, taking a moment to map out the necessary steps and tackle them individually can make all the difference in achieving success. So next time you're feeling stuck, take a breath and ask yourself: what's the next small step I can take? Using rewards as incentives to get started Sometimes, all it takes is a bit of extra motivation to get things done. That's where rewards can come in handy as an incentive to get started. Whether it's a tasty treat, a fun activity, or even some well-deserved relaxation time, a reward can give you that extra push to begin tackling a task. Studies have shown that implementing a reward system can increase productivity and help you achieve your goals faster. So why not give it a try? Choose a reward that suits you and your task at hand, and see how much more motivated you feel to get started. Finding out what your specific procrastination triggers are Have you ever found yourself staring blankly at your to-do list, unable to muster the motivation to tackle any tasks? Identifying your procrastination triggers can be the key to overcoming it. Maybe certain types of tasks are more daunting to you, or you get easily distracted by social media or other forms of entertainment. Whatever it may be, pinpointing your personal procrastination triggers can help you create a strategy to combat them and finally get back on track. Developing a plan and timeline for success Success isn't something that happens overnight. It requires careful planning and a well-thought-out timeline. Whether it's starting a business or working towards a personal goal, having a plan in place is essential. The first step in creating a successful strategy is to define your goals and establish the time frame you want to achieve them. It's crucial to take the time to map out the smaller steps needed to reach your ultimate objective and assign realistic deadlines to each of them. Along the way, it's also essential to evaluate your progress regularly and make necessary adjustments to your timeline or plan. With a clear strategy and timeline in place, success is within...

Duration:00:11:48

561: Easing Your Back Office Burden One Payroll At A Time

2/2/2024
This Podcast Is Episode 561, And It's About Easing Your Back Office Burden One Payroll At A Time As a construction business owner, you have a lot on your plate. You need to manage your employees, oversee projects, ensure compliance with regulations, and keep your clients happy. Amidst all this, you may be tempted to handle your payroll to save costs and maintain control. At face value, it seems like a great idea. If you're a small business owner with just a few employees, you probably think hiring a payroll specialist is an expense you can avoid. You feel that you can handle it yourself. You intend to keep your staff paid right and on time. What could go wrong, right? Well, lots, actually. And before you know it, it's now a costly mistake, and you need to spend more money to make it right. Why doing your own company payroll is not a great idea: 1. Time-consuming Payroll processing is a time-consuming task that requires attention to detail, knowledge of tax laws, and expertise in accounting. As a construction business owner, your time is better spent growing your business and focusing on your core competencies. If you don't have a finance background, you'll likely spend a substantial amount of time calculating employees' work hours, computing taxes and other deductions, creating payslips, processing, and filing. And even if you have a bit of a background in bookkeeping, are you sure you want to spend your precious time doing these tasks instead of focusing on the core aspects of your business? By delegating payroll processing to a professional, you can free up time for strategic planning, marketing, and business development. 2. Risk of errors Payroll processing involves complex calculations and compliance with federal, state, and local regulations. Any payroll mistakes can result in penalties, interest, and legal liabilities. By outsourcing payroll to a professional, you can reduce the risk of errors and ensure compliance with regulations. A payroll specialist knows the ins and outs of taxes, overtime, contributions, sales commissions, and bonuses. The bottom line is that another professional can do it better, and while they're at it, you can get back to doing what you do best– like growing your business! 3. Costly mistakes Payroll mistakes can be costly for your business. For example, you may be subject to penalties and interest charges if you fail to withhold the correct taxes. Similarly, if you misclassify employees as independent contractors, you may be liable for back taxes, penalties, and legal fees. Sure, you can learn about relevant tax adjustments and benefits procedures if you want to. But then again, you'd be spending more time educating yourself, not to mention the possibility of making costly mistakes. Payroll processing requires expertise in accounting, tax laws, and compliance regulations. As a contractor, you may not have the time or resources to keep up with the latest changes in payroll regulations. A professional construction bookkeeper can help you avoid costly mistakes and protect your business from financial risks. You can benefit from their expertise and ensure compliance with regulations. 4. It's aggravating There's no denying that payroll processing can be stressful, especially when you don't know what you're doing. Reduce stress and spend more time on business activities that drive profits and growth. You can also eliminate the risk of burnout and improve your work-life balance. Better Practices Payroll is one of those things that starts simply enough. You create your construction business, outsource contractors, or hire part-time crew, and things tick along. It's straightforward and sufficient to keep everything in line at first, but what happens to most companies is that they grow! This is a great thing, but it also means that payroll becomes more complicated. As such an essential aspect of your business, payroll must run smoothly. Getting...

Duration:00:11:47

560: Scaling And Adapting Business Strategies Amid The Cost Of Living Crisis

1/26/2024
This Podcast Is Episode 560, And It's About Scaling And Adapting Business Strategies Amid The Cost Of Living Crisis When you're ready to take your construction business to the next level, you might start thinking about "scaling." No, it's not just a fancy term for growth; it's about doing more with less. Scaling is about increasing your revenue without proportionately increasing your resources—fancy yet practical, right? It's like sending an email: your effort is the same whether you send it to 100 people or 100,000. But, as of now, we also probably feel like we are in the thick of a cost-of-living crisis. This challenges entrepreneurs and is a nerve-wracking time for many small construction business owners. If you've had sleepless nights worrying about how you'll pay your suppliers or support your staff, you're not alone. You've likely already considered where to cut costs, but it seems impossible when suppliers raise prices. But don't despair just yet! There are strategies to stretch your dollar further, and they're not always about trimming expenses. What are the tricks to scaling and adapting effectively? Efficiently using your resources without emptying your pockets, the MAP way (Marketing-Accounting-Production). So, how can you make this happen? Let's get into it. 1. Look at ways to bring or retain more money into your business. Knowing exactly where and when money is coming from your business, is the first step to seeing where you can save costs. You could be paying for services you don’t even use or simply aren’t worthwhile. Take it one step further and ask yourself if the products or services you pay for add value to your construction business. Arm up your marketing efforts Spending more when you're looking to save might seem counterintuitive, but investing in marketing can yield profitable results in increased sales. There will be short-term costs, but effective marketing can substantially contribute to a positive cash flow in the long run. Understand your clients During uncertain times, empathy goes a long way. Understanding your customers' fears and concerns can inform strategies to drive sales. Depending on their situation, you might be able to offer more services or adjust prices without adverse reactions. As inflation rises and suppliers hike prices, it's crucial to respond accordingly or risk bearing the brunt of the impact. 2. Do what you can with the things under your control while monitoring external influences. Resist the urge to slash expenses indiscriminately. Cutting back in the wrong areas might hinder the growth of your construction business. Make it a priority to retain your staff if you have any, exploring other places to trim costs or increase revenue instead. You can't control everything about your business, but you can stay aware of external factors that might impact buyers' behavior. Keep it simple, keep it clean Don't get lost in complexity. More complexities equal more chances for things to go wrong, time wasted, and resources spent. If you're scratching your head trying to understand a process or a tool, chances are, so are your employees and customers. Keep it simple to keep control and keep everyone on the same page. Monitor your competitors Do you know how competing businesses cope with the cost of living crisis? Can you see what kind of strategy they've adopted? Understanding their strategies can provide insights about your place in the market and potential customer perceptions. 3. Embrace technology. The daily processes and transactions involved in operating a general maintenance and repair contracting business can mean long hours of repetitive tasks and occasional oversights due to human nature. Automating these tasks can result in significant savings in resources and eliminate mistakes. However, the key is knowing which tasks should be automated and which ones warrant staff intervention and guidance. Automation is your friend The future is here, and it's...

Duration:00:12:34

559: Mastering Tone For Construction Company Connections

1/19/2024
This Podcast Is Episode 559, And It's About Mastering Tone For Construction Company Connections Mastering the right tone is critical when connecting and communicating with people in the construction business. Whether you're writing an email, making a phone call, or meeting in person, how you present yourself can make all the difference in building strong relationships with clients, colleagues, and partners. Research suggests that as much as 93% of communication is non-verbal, so it's unsurprising that the tone and meaning of emails and messages are misinterpreted as much as half the time. For small construction businesses, email is frequently the preferred way to communicate with new leads, customers, and employees – but if you haven't mastered your tone, the meaning of your message may be lost. In the worst-case scenario, you may even unintentionally offend your audience. Follow these tips to improve your tone when writing emails or other business communications. 1. Adapt to your audience Tone reflects the writer's attitude toward the reader, so you'll use a different tone depending on whether you're asking a bank officer for a loan or your client to respond to your change order question. Your relationship and purpose will help you decide on your word choices, which might be serious and formal, or relaxed and fun. Using active voice will bring your reader right to the point. Taking care always to use courteous language will keep them on the side. 2. Be clear and concise Avoid using jargon or technical terms such as' load-bearing walls' or' footings' that may not be familiar to everyone you're communicating with. Instead, try to use plain language that is easy to understand and gets your point across effectively. If it's in written form and you doubt how an email may be interpreted, hit save and return to it a day later – or ask a colleague to read it and provide some feedback. These additional tips can help you write emails that get read and avoid offense or confusion: Avoid using slang or sexist languageRemove any unnecessary wordsBe appropriately respectful of subordinationBe gracious (please and thank you. You go a long way with creating the right tone, which will keep you from being too abrupt, especially if your email is brief) 3. Be professional and respectful Use proper grammar and spelling, address people appropriately in all your interactions, and avoid confrontational or aggressive language. What to do when delivering a negative message: The tone becomes a more significant challenge if your message contains terrible news. After all, there is no way around creating unpleasant feelings in some circumstances. You can, however, avoid insult to injury by following these tips: Thank the reader for their message, briefly explaining why you cannot approve a request. In this case, passive voice is preferred because it helps neutralize the message.Take care to avoid personal attacks. You can maintain a professional tone by deferring to policies rather than personal feelings about an event or situation.Avoid the "bright side." Listing any perceived benefits can come off as uncaring by downplaying the emotional impact the reader may experience upon receiving the message. Drafting a style guide this January for a fresh start will help make your construction company's "tone rules" clear to staff, help build greater brand recognition with a consistent voice, and help you avoid the wrong tone in your communications. Start by defining your tone. Is it casual, fun, formal, serious, or quirky? Come up with five words that describe the tone of your brand. Then, list words that may and may not be used in your marketing emails. To illustrate exactly what you're aiming for with tone, include some sample text in your guide – perhaps some of your company's collateral or examples of marketing emails you'd like your construction business to emulate. Selling your services to homeowners involves art and creativity. Words...

Duration:00:10:17

558: Practical Tax Season Tips For Construction Business Owners

1/12/2024
This Podcast Is Episode 558, And It's About Practical Tax Season Tips For Construction Business Owners Tax season can be a bit overwhelming for construction business owners, especially with many things to keep track of in our industry. But don't worry; we're here to help! We know that construction businesses have unique tax considerations that can be tricky to navigate, such as complex accounting and bookkeeping challenges and issues related to payroll and sales taxes. That's why staying informed about the latest tax laws and regulations is essential, as well as working closely with a qualified construction accountant and tax professional who can guide you through this process and ensure you comply with all applicable tax rules and regulations. Preparing for tax season is a year-round endeavor. Tip number one for construction company owners is to update monthly financials using a streamlined software or cloud-based system. This way, come tax time, everything you need is in one place. Well-organized small businesses are better positioned to minimize tax bills while avoiding missing or inaccurate information penalties. Here are four more ways to take the stress out of tax time and maximize your return. Know your credits and deductions. Small businesses typically benefit from a wide range of tax credits. From special allowances for research and development to programs that supplement wages for student employees and apprentices, knowing which credits apply to your business can save you a tax bundle. It's also essential for business owners to be savvy about deductions. After all, you want to keep as much of your hard-earned revenue as possible. Often-overlooked items you may be able to deduct include: - Seminars, classes, or conventions you attended to improve your professional skills; - Unused inventory that you've donated to charity (an excellent reason to consider donating your overstock rather than paying for storage) and - Capital assets, such as office furniture, computers, and equipment. Speak to your accountant about the deductions you can plan for each tax year. Be careful about what you claim. If you run your business out of your home, you may be able to claim a portion of expenditures like utilities, insurance, property tax, and rent. But you must keep good records and receipts to justify why you've allocated business costs to your home office. The same goes for home office computers and mobile phone expenses. Tax authorities will want to see how you've separated these assets from personal and professional use when you claim them as work expenses. Want to claim drive time as a work expense? Ensure you submit a log of your business-related mileage to demonstrate how your personal vehicle was used professionally. Don't miss the deadline! This should go without saying, but construction business owners are hit with severe penalties for filing taxes late yearly. Missing the deadline can have a range of negative repercussions, including: - Added interest to amounts owing, plus a late payment penalty; - Losing your claim to a refund; - Loss of credits toward retirement or disability benefits and - Delay of loan approvals (lenders require a copy of your filed tax return to process your application). Seek expert advice well in advance. A survey of small business owners found that a full quarter don't understand their tax obligations. What's more, 27% only speak to their accountant at the last minute, just before the filing deadline. Having trouble? You don't have to go through it on your own again. Set yourself up for success this year by following these four pillars of painless tax preparation: 1. Commit to clean bookkeeping from day one Year-round, effective bookkeeping is the best way new business owners can minimize tax season stress. With the wide range of accounting software, there's no reason to rely on time-consuming manual methods that leave room for error. All-in-one options like Xero...

Duration:00:11:30

557: Becoming A Better Project Manager By Improving Communication Skills

1/5/2024
This Podcast Is Episode 557, And It's About Becoming A Better Project Manager By Improving Communication Skills In the construction industry, communication takes many forms, including written reports, drawings, emails, and face-to-face meetings. Each form of communication has its own set of advantages and disadvantages. For example, written reports and illustrations provide a permanent record of information, but they may not be as effective in conveying complex ideas as face-to-face interactions. Understanding how construction business owners and project managers, like you, if you do both (a one-person company), adapt to their environment, and facilitate procedures could make your company run smoother because there is no money in workplace chaos. However, the thinking patterns and comfort zone of a well-trained staff or subcontractor are defined by the following: If it isn't broken, how can I ensure it stays that way?When it fails, I fix it, then I look for the root cause and work on thatI maintain it so that it does not deteriorate into an emergencyEverybody is my client; I work for the internal and the external clientWhen I have to fix things, I must not have done my job right in the first placeI gain recognition from knowing things are running smoothly and predictableMy clients are important; the world revolves around themI don't know everything, so I ask lots of questions to uncover problems and opportunitiesI delegate responsibility to those who can handle it, and I guide them to successI read instructions because somebody else learned it the hard way and wrote about itEverything under my control is my responsibility; therefore, I empower myself to fix itConstruction Project Managers loathe unpleasant surprises, so I seek to eliminate unpleasant surprisesWhen a severe problem arises, I work with the team to develop a plan before it gets out of controlFinally, I don't reinvent the wheel; I find who is doing things right and copy their success Effective leaders are conditioned to avoid emergencies by being proactive and having systems to deal with emergencies. After the crisis has passed, they are ready to evaluate the emergency's root cause and implement change in the system to avoid a repeat performance. That's why excellent communication is crucial in the construction business workplace. With so many moving parts and various stakeholders involved, clear and concise communication is necessary to ensure everyone is on the same page and working towards the same goal. Poor communication can lead to costly errors, delays, and safety hazards. To become a better leader and improve communication in the construction business workplace, it is essential to establish clear lines of communication and ensure that everyone understands their roles and responsibilities. Regular meetings and check-ins can help keep everyone informed and up-to-date on project progress and any changes or issues. It is also important to encourage open and honest communication, where team members feel comfortable sharing their concerns and ideas without fear of retribution. This can help to foster collaboration and creativity, leading to better outcomes for everyone involved. One way to improve and encourage collaboration and clear communication in your workplace is by practicing simple ways to improve it: 1. Always maintain control of your emotions in stressful situations Leaders are often called upon to make difficult decisions under circumstances that are not ideal. If you can keep a cool head and calmly make decisions in a crisis, the people around you will begin to recognize you as the go-to leader when new or challenging situations arise. 2. Remain focused on the conversation at hand When you are in the middle of working on a project, it is easy to get tunnel vision that prevents you from focusing on what is happening around you. When someone engages you in conversation, always try to stay focused on what they are saying. Occasionally,...

Duration:00:11:57

556: Rest And Reset For Construction Contractors And Business Owners

12/29/2023
This Podcast Is Episode 556, And It's About Rest And Reset For Construction Contractors And Business Owners To be in business and to remain in business, become a business person! To run a business, you must be business-like. It's not sufficient just to be very good at what you do. Many people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that" is no excuse. Are you 'too busy' to be a competent businessperson? If so, your construction business won't last long. You must continue to develop your business skills. To be a businessperson, you have to make an effort to become something of an 'all-rounder,' not just a specialist player. You can offer outstanding goods or services, but if you don't develop sound business systems, you are not a fully rounded businessperson, and your business will be in danger of failing. Having a system in place is your key to enjoying a stress-free holiday. There's no need to be overly anxious about your construction business during this period (this week, between Christmas and New Year, for instance) as long as you have a few basic precautions. It's never too late to start building a system; you never know when you might need a break for a momentous occasion or your health and well-being. Back up all your important documents and information and store the backups in a secure place off-site. It also makes sense to take this one step further and check that you can restore your systems from your backup. Arrange for a responsible staff member or someone independent of your business to monitor your premises (if you have one). Alternatively, install security systems if you haven't already: fire alarms/sprinkler systems and break-in monitoring by a security firm. This is something to consider if you haven't done this yet. It's also good to ensure you have appropriate insurance coverage and that your insurance policies haven't lapsed. Practice the Art of Delegating - yes, this is possible even if you're a one-person company. You can outsource small tasks and hire a specialist for a more specialized job in many ways. A virtual assistant can communicate and respond to inquiries, emails, and social media. A construction bookkeeper can take care of your last bits of receipts and payroll. You can also: Plan for contingencies. What would you do if staff fell ill? Who should be contacted if there are any unexpected calamities?Discuss your team's concerns and your own.Pick the right people for the right jobs. This is critical if you want your construction business to continue to operate well in your absence; you'll be relying on your staff while you are away. It is essential that you prepare them.Ensure everyone is familiar with the contingency plans – discuss, revise, and practice them before departure. As a construction business owner, taking time away from work is essential. But worrying about whether staff are meeting deadlines and suppliers are happy translates to more stress and less time enjoying your holiday. With some staff communication and planning beforehand, you needn't worry that your business won't be able to cope in your absence. If you can't switch off from work mode or something urgent pops up, technology can be a great way to check in and ensure things are ticking along. Is it time to start over? For those of you who are using this week to rethink your administration and paperwork processes, I might be able to help you clear some bookkeeping blunders. Sometimes, a contractor's QuickBooks (or bookkeeping) file is a hopeless mess, and fixing it would cost more than simply starting over would cost. Here is a list of warning signs that can help you decide: Nothing inside QuickBooks makes any sense to you.None of the Financial or Job Costing Reports make sense to you.Your QuickBooks bank or credit card balance differs entirely from your last Bank Statement. Worse yet, your bookkeeper puts all the credit card statement charges in bulk using...

Duration:00:11:50

555: The Benefits Of Outsourcing For Construction Company Owners

12/22/2023
This Podcast Is Episode 555, And It's About The Benefits Of Outsourcing For Construction Company Owners Outsourcing can offer a range of advantages for small construction businesses in today's competitive market. Not only does it reduce costs and free up valuable time for owners to focus on growing their business, but it also provides access to skills and expertise that may be unavailable in-house. Small construction businesses can streamline operations, increase productivity, and scale faster than ever by working with external professionals or firms who work in certain areas. Because a small business focuses on survival, you pay much attention to the bottom line. This makes much sense, but it also leads to being seriously overworked. Contractors are under increased pressure to cut their prices to get enough work. And that means they need to reduce costs. New technologies and approaches in cloud computing for construction accounting give forward-thinking contractors a fantastic ability to get more for less -but in most cases, contractors' heads are still stuck in 1990, thinking they have to do everything themselves. Here are some benefits of outsourcing for small businesses and how they can help your business succeed. The advantages of outsourcing for small construction businesses As a small business owner, you want to ensure that every aspect of your company is running smoothly. Outsourcing can benefit your business, including cost savings, access to special skills, and increased efficiency. By outsourcing specific tasks, you can free up time and resources to focus on core business functions. Outsourcing can also help you keep up with the latest industry trends and technologies, giving you a competitive edge in your market. So, if you want to grow your small business, consider whether this is a viable option to help you succeed. 1. Identify which services and tasks are suitable for outsourcing. When outsourcing, you must carefully consider which services and tasks are suitable for delegating to third-party providers. Factors such as the nature of the work, the level of expertise required, and the cost-benefit analysis must all be considered. For example, routine administrative tasks like data entry or customer service may be easy to outsource. Still, more complex tasks like software development or legal assistance may require a more strategic approach. Ultimately, outsourcing can offer numerous benefits to construction companies, including cost savings, improved efficiency, and greater flexibility. Still, it's essential to identify the right areas to outsource to magnify these benefits. 2. Review the cost-benefit of using a freelancer or third-party service provider. When outsourcing specific tasks, businesses have two options: hiring a freelancer or contracting a third-party service provider. Each option has pros and cons that business owners should consider before deciding. On the one hand, hiring a freelancer can potentially save money since they typically charge less per hour than a full-service agency. However, freelancers may not have the same experience or resources as a third-party provider, which could lead to lower-quality work or additional costs down the line. On the other hand, contracting a third-party provider may be more expensive upfront, but they often have a team of experts with years of experience and access to top-of-the-line technology. Ultimately, the cost-benefit analysis will depend on each business's needs and the outsourced tasks. 3. Discuss different payment options when hiring a freelancer. When hiring a freelancer, one of the critical things you must consider is how you will pay them and what payment options are available. Fortunately, several payment options can help you pay your freelancer easily and securely. These options include paying through platforms like PayPal or Stripe, using wire transfers, paying with credit or debit cards, or even choosing to pay by...

Duration:00:13:21

554: Managing Work-Life Balance As A Construction Business Owner

12/15/2023
This Podcast Is Episode 554, And It's About Managing Work-Life Balance As A Construction Business Owner Wellness is an important aspect of life for everyone, especially construction contractors like you. Given the physically demanding nature of the work, contractors must prioritize their physical and mental health. Proper nutrition, exercise, and adequate rest are all necessary for maintaining a healthy body and mind. Additionally, taking breaks and managing stress can help prevent burnout and promote well-being. By prioritizing your health, contractors can feel better and perform better on the job. However, maintaining a healthy work-life balance can be difficult for a small construction business owner, as most know. You may work long hours, sacrificing personal time and family obligations to keep your business running smoothly. The duties and responsibilities of running your own business often take priority, no matter how personal pursuits are essential for your well-being. But, with the right strategies and mindset in place, it is possible to strike an effective balance between working hard on your business and making time for yourself. Set boundaries As much as we might love our jobs, we must remember that our mental and physical health always comes first. One of the best ways to ensure we care for ourselves is by setting boundaries for our work schedule. For example, taking regular breaks throughout the day can help us avoid burnout and increase productivity when we return to our tasks. Or, if we know that specific tasks require more energy and focus, we can set aside clear days to tackle them. Create a schedule that allows you to dedicate specific hours to work and specific hours to personal time. Avoid checking emails or answering work-related calls during your personal time, and encourage your employees to do the same. By sticking to a schedule that puts our well-being first, we can remain motivated and engaged in our work for the long haul. Do what works for you Ever feel like you have a million things to do and not enough time in the day to get them done? Trying to keep track of everything can be overwhelming without some system in place. That's why it's important to identify what works best for you and create a plan that keeps you on track and productive. Maybe you're a fan of to-do lists, or maybe you prefer to use a digital calendar. Perhaps you find that breaking tasks down into smaller, manageable steps helps you stay focused. Whatever it is, take the time to figure it out and stick with it. Your future self will thank you for it! Sort out what is important and what is urgent We often juggle multiple tasks and try to complete them all at once. This approach can often lead to suboptimal results or burnout. A better system is to sort our tasks based on their importance and urgency, focusing on the most important or urgent tasks first. This way, we can ensure that we are progressing in the right direction and achieving our goals. Identifying the most critical and urgent tasks may require time and effort, but it will pay off in the long run with increased productivity and reduced stress levels. So, next time you feel overwhelmed with a list of tasks, take a step back. Learn to delegate As much as we all might like to think of ourselves as superheroes who can handle anything and everything, the truth is that we're all human. Sometimes, even the most capable among us need a little assistance, and that's nothing to be ashamed of. Knowing when to delegate tasks can be one of the most important skills you can develop as a leader or even a responsible adult. Knowing when to ask for help – whether from family members, friends, or co-workers – can save you time, reduce stress, and improve the quality of the result. So, if you feel overwhelmed by a project or task, don't hesitate to ask for help. It might just make all the difference in the world. This will help you manage your...

Duration:00:11:17

553: How To Avoid Year-End Construction Bookkeeping Chaos

12/8/2023
This Podcast Is Episode 553, And It's About How To Avoid Year-End Construction Bookkeeping Chaos As the year comes to a close, it's important to start thinking about your bookkeeping tasks to ensure a smooth transition into the new year. Deadlines are fast approaching, but it doesn't have to be stressful. Have you given your bookkeeper, wife, partner, accountant, or tax accountant the information needed to complete your reports? Accountants need good information to create detailed reports and save money on your taxes. Here is where the expression "Garbage In Equals Garbage Out" comes into play. It is impossible to create Job Costing Reports when all anyone knows is the deposit amount on the bank statement. It's the Mad Dash To The End Of The Year as a contractor recently described their Year End Madness to prepare his documents for the Tax Accountant. Are you in this cycle? I have great news for you - it is preventable. 1. Review your accounts: Make sure all your accounts are reconciled and up-to-date. This includes bank accounts, credit cards, and any other accounts. In Construction Accounting, not everything is an expense. Not every item, tool, material, or customer enters the Chart of Accounts. In some cases, Class Tracking is helpful, but most of the time, it is used to make up for a poor Chart of Accounts or as a "workaround" for an accounting product not designed to have Job Costing Reports or Cost Of Goods Sold. Giving your bookkeeper only your bank statements and saying "Fix It" – I Want Job Costing Reports, I Want To Know Details is not enough. Doing it the way you have always done it – expecting a different result isn't how it works. 2. Review your files: Go through your year's costs and ensure they are all properly categorized. This will help you with your tax reporting and better understand where your money is going. One of the most overwhelming parts of the end of the financial year is finding all the invoices, receipts, and reports you need to file your taxes correctly. Pay attention to how easy it was—or wasn't—to find what you needed this past year. Did you have to search 15 different places for all your receipts? Did you have a combination of online and physical invoices? Did you have clearly labeled folders for everything? Did you leave everything for the last minute? If you search high and low for every piece of paper you need, you might want to consider revising your paperwork so it's easier and less time-consuming to manage. Can you keep track of everything through software and apps? Is there technology or equipment that can help you? Is it worth investing in a filing cabinet? The effort you put now into sorting your paperwork will pay off hugely every year when you can quickly and easily find all the information you need. Let's face it; you'll come up against the end of the financial year every year, so you may as well be systematic about it. 3. Collect your receipts: Ensure you have all your receipts from the year. This includes receipts for business expenses, charitable donations, and any other tax-deductible expenses. Every missed receipt that is a business expense is a missed deduction. Bookkeeping is all about tracking the money. Money In, Money Out is just following the checkbooks. Accounting is entering into an Accounting System that creates a Profit and Loss and Balance Sheet for the Tax Accountant to do the Annual Taxes. (Every successful contractor should have a Tax Accountant do their annual tax return) 4. Reflect on your year: The end of the financial year is a perfect time to reflect on how the past year went. Celebrate the big successes, but remember to focus on other victories. Even if you didn't meet your financial targets, did you survive a particularly tough year? Did you manage to pivot your construction business and try a new model? Did you take some risks and learn from them? Did you grow your business or expand your offerings? It's great to have goals...

Duration:00:10:44

552: Why Online Reviews Matter And Ways To Deal With Negative Feedback

12/1/2023
This Podcast Is Episode 552, And It's About Why Online Reviews Matter And Ways To Deal With Negative Feedback In today's digital age, online reviews hold immense power and influence over the success of small construction companies. With easy access to social media, Google reviews, and review websites, customers can easily voice their opinions and experiences with your business online. Most people searching for a local construction company - whether they need a plumber, painter, or general contractor, will check their online reviews before deciding. Positive reviews can help establish credibility, build trust, and attract new customers. Conversely, negative reviews can damage a company's reputation and deter potential customers. Given the importance of online reviews, small construction companies should aim to provide excellent service and encourage satisfied customers to leave positive reviews. As a small business owner, you must understand the importance of online reviews, as they will impact your brand image, sales, and customer loyalty. Boost your brand image Online reviews are the first point of contact between your business and potential customers. Positive reviews can improve your brand image and credibility. When customers leave positive reviews, they help build an excellent impression of your brand, which can lead to increased sales and customer loyalty. A study conducted by BrightLocal found that 85% of consumers trust online reviews as much as personal recommendations. So, having a positive online reputation can make a big difference in the success of your small construction business. Improve your sales Online reviews can directly impact your sales. Positive reviews can help you attract new customers, while negative reviews can drive potential customers away. Positive reviews indicate that your business is reliable, trustworthy, and provides excellent customer service. You should encourage customers to leave positive reviews and respond professionally and promptly to negative ones. Gain insight into customer experience Online reviews can provide valuable insights into customer experience, which can help you improve your business. Reviewing them lets you identify areas to improve customer service, products, and business operations. Also, reviews can help you understand your target audience and what they value most about your business. Addressing customer feedback shows that you are willing to take the necessary steps to improve your business, which can enhance your online reputation and attract new customers. Increase customer loyalty Customers appreciate businesses that value their feedback. Responding to customer reviews and addressing their concerns shows you care about their experience with your business. When customers feel heard and appreciated, they are more likely to return and become loyal customers. Ways to deal with negative online feedback/review: Leave the negative review up A negative review doesn't have to be the end of the world. Although customers like to see five-star reviews, they understand that perfection is almost impossible—and probably a sign that something is "too good to be true." In that sense, having a customer or two provide negative feedback gives more credibility to the positive reviews. Customers expect to see a couple of negative reviews. If they're in amongst positive feedback, the negatives won't hurt you much and may increase your legitimacy if handled well. Respond to the review honestly Customer complaints are a way to build trust with your potential clients by allowing you to respond honestly and professionally. Did something go wrong that was out of your hands? Offer an apology and explain what happened. Was there a misunderstanding? Take the opportunity to clear it up. Has the reviewer requested additional information or a solution? Respond online to show what you've done to address the situation. Did the reviewer misunderstand a policy? Explain your...

Duration:00:10:10

551: Recognizing The Value Of Construction Contractors In Our Daily Lives

11/24/2023
This Podcast Is Episode 551, And It's About Recognizing The Value Of Construction Contractors In Our Daily Lives I was taking a moment to reflect on the challenges for the Pilgrims coming to America. They decided to make the journey with no guarantee of success. To build homes, plant crops, and take care of animals. Then, later, everyone chose to move West by wagon train, horse, or on foot. I am grateful for them! I think about my Grandparents and my Great Grandparents. What was life like when they were children? Where did they come from, and how did they get to where they were? The family's oral history seems so inadequate. My father shared so much, but now it looks like so little. Be glad for the simple things we take for granted: Going to the grocery store, deli, or restaurant for dinnerLiving indoors with electricity and indoor plumbingDriving a carCrossing the water on a bridge or ferry Modern times. I am all for living in the city with the gas station and grocery store just down the street. I appreciate reliable electricity, and tree contractors trim powerlines year-round to help prevent outages. I am grateful for the linemen who repair power lines during a storm so we have electricity. Please note: The offer does not apply to Outsourced Accounting, Bookkeeping Review, or any Consultation and Training products; you can, however, use it to purchase any course or monthly subscription classes in Construction Accounting Academy Thank You, Contractors, for going to work so the rest of us can stay home safe. Thank you to the road crews, police, firemen, linemen, tree crews, plumbers, and electricians who work when the news says "Stay Home" and to all the other contractors and emergency services I have not mentioned. Contractors Make Our Lives Better Contractors build and maintain the things that make our lives better. They built the factories where the factory workers work. The rancher and farmer, whom you don't think about as contractors, construct and repair buildings and fences and maintain equipment. They learn to be jacks of all trades, raise crops and animals, and battle the elements. Heat, wind, rain, snow, forest fires, or grass fires – they see it first—the more remote their location, the more diverse their skills. Why did you decide to become a Construction Contractor? Fast money, easy work, few hours, or all those reasons? Yes, contractors can make much money in this industry. Fast, however, is a relative term. Definition of Fast Money Collecting a job deposit is designed to lock down the job and buy materials. While using your client's money to start the project is always a good idea, that doesn't mean you have money to party heartily, buy a bunch of tools, or buy that brand-new truck you want. The money will fly out of the checkbooks with everyday business expenses without extra help. If you spend your job deposits in this manner, you get into a cycle of "Borrow from Peter to pay Paul." (author unknown) This was a favorite phrase of the '60s and '70s. What do I mean? Using the deposit from the next job to pay for expenses from the last job is a slippery slope to financial disaster. Another common phrase is "Leverage Is Great Until The Stick Breaks." It's like a child's game of musical chairs. When the music stops, someone is without a chair. The same thing happens when the economy turns, as in 2008. Contractors thought (and hoped) the recession would be a slight dip and everything would return to normal by the summer of 2009. That is not what happened for most construction contractors. Some construction contractors had lots of work in the pipeline unaffected by the recession. Many were overconfident and thought other contractors had a hard time because they "just didn't know how to run a business." Unfortunately, those same contractors were badly hurt when their pipeline of jobs ran out. Definition of Easy Work Easy work is any job that you know how to do quickly. Preparing Thanksgiving...

Duration:00:13:19

550: Becoming A Better Construction Leader By Practicing Generosity

11/17/2023
This Podcast Is Episode 550, And It's About Becoming A Better Construction Leader By Practicing Generosity If you have been lucky enough to encounter generous people, you understand they have a unique gift for garnering the respect and admiration of individuals around them. When you are a leader, having a positive relationship with the people who follow you is a huge asset you cannot put a price on. In the construction business, generosity and helpfulness are two fundamental traits that can make a business successful. When contractors are willing to share their knowledge and expertise with others, it creates a sense of community and fosters growth and success for everyone involved. Additionally, when contractors are generous with their time, resources, and even their finances, it can significantly impact the success of other businesses and individuals. t is the right thing to do and being generous because it is something you value are two different things. If you want your generosity to be compelling, it must come from a place of sincere care and concern for those you lead. Being generous to others not only lowers their anxiety and increases their appreciation for you, but it also adds to your happiness and health. 2. Look for moments to be grateful. Being grateful could be as simple as sending a brief, personal thank-you email when the occasion arises. You do not need to create a large display or spend much money to make people feel valued. Simply watch for positive behavior in others, and when you see it, make a mental note to acknowledge it and express your gratitude. 3. Find opportunities to give back to your community. Depending on your resources and the capacity to lead others, the extent of your reach may vary, but don't let that stop you from finding ways to give back to your community. Most homeless shelters have standing requests for donations of socks, bottled water, coats, and blankets. Speak to your company to gauge their interest and help organize a supply drive or fundraiser to give back to your community. When the people you lead see you being generous, it displays your character and often increases their respect for you. 4. Become more hopeful. Naturally generous people are often idealists. They perceive how the world around them should be and believe in the goodness of people. Becoming an optimist could be a struggle if you are naturally pessimistic, but it is not insurmountable. Next time a challenge arises on the team you are leading, go above and beyond to believe the best in others and trust that the outcome will be positive even when it may not look that way on the surface. 5. Look for opportunities to trust others. Trusting others may not seem like a quality of a generous person; however, one of the most remarkable ways you can be generous with others is by trusting them enough to allow them to take the lead on things that matter to them. Trust their ideas and, more importantly, their ability to complete the task. When you loosen your grip as a leader and trust the people around you to do what needs to be done, they will see you as a more trustworthy, generous leader. There are many ways to express generosity toward others. When you look for opportunities to be more understanding and helpful, the people you lead will feel more secure following you. A leader needs to gain trust and respect; one of the best ways to do that is by being generous as often as possible! And what's the most generous thing you can do for yourself? Hire help! If you're like most construction business owners, there are never enough hours in the day to complete every task on your list. Often, you must prioritize what you need to do right now – deal with a client, estimate a project, attend an event – and what you know you should do for the ongoing growth of your business. It sounds simple, but many entrepreneurs' self-sufficient, independent nature can make it difficult to get...

Duration:00:10:55

549: Construction Company Budget Vs. Cash Flow

11/10/2023
This Podcast Is Episode 549, And It's About Construction Company Budget Vs. Cash Flow Finding some certainty can make all the difference in the unpredictable construction business world. While the future remains a mystery, budgeting and cash flow forecasting tools can significantly reduce uncertainty, allowing you to anticipate challenges, learn from past events, and enhance your ability to navigate your business. Budget vs. Cash Flow: The Crucial Distinction A common misconception is that a budget and cash flow are interchangeable. A budget is a projection of future possibilities, enabling you to consider various sales and expense scenarios. On the other hand, a cash flow provides a record of actual expenses and sales revenue that flow into and out of your business each month. Although they often deal with the same data, their applications differ. Budget and cash flow are both essential concepts in construction management. However, they serve different purposes and are used in different ways. A budget is a financial plan that outlines expected income and expenses for a specific period. In construction, budgets are typically created for individual projects or a company. The purpose of a budget is to help managers plan and control expenses, set goals, and allocate resources. On the other hand, cash flow is a measure of the amount of cash coming in and going out of a business over a specific time. In construction, cash flow is significant because it can be used to determine whether a project is financially feasible and whether there is enough cash on hand to pay for expenses. Budgets and cash flow are related but not the same thing. A budget is a plan, while cash flow measures actual cash transactions. A project can be under budget but still experience negative cash flow if expenses exceed income. Conversely, a project can be over budget but have positive cash flow if income exceeds expenses. You might budget $1,000/month for online costs, whereas in the cash flow, you'd record the actual amount spent. Despite their distinct uses, cash flow and budgeting are often maintained on the same spreadsheet or similar accounting software for ease of use and comparison. The advantages of budgeting and cash flow forecasting Incorporating budgeting and cash flow forecasting in your construction business has numerous benefits. They help predict and manage potential cash surpluses or shortages, plan for tax obligations, time new equipment purchases, determine when to buy in bulk, and even identify when you might need a small business loan or a line of credit. Budgeting and cash flow forecasting are essential tools for any construction business. They provide a clear picture of the company's financial health and help identify potential problems before they occur. By creating a budget, companies can plan their finances more effectively, set realistic goals, and allocate resources to maximize profitability. This is particularly important in the construction industry, where projects can be complex and costly. Cash flow forecasting is equally essential, enabling businesses to understand their cash position and ensure they have sufficient funds to meet their obligations. This is particularly critical in construction, where delays or unexpected expenses can quickly impact cash flow. By forecasting cash flow, businesses can plan for these contingencies and ensure they have the necessary funds available when they are needed. One handy feature is the ability to track expenses and highlight any unusual cost increases or decreases. This allows you to take prompt action to address the issue. Additionally, these tools can help monitor sales levels and flag any underperforming areas of your business. Practical tips for effective budgeting Preparing an annual budget requires sufficient time – allocate at least two or three months for this process. Update your budget each month based on the actual cash flow. Remember that the sales forecast is...

Duration:00:11:22

548: The True Value Of Networking To Contractors And The Community

11/3/2023
This Podcast Is Episode 548, And It's About The True Value Of Networking To Contractors And The Community The ability to network is a fundamental part of running a business. Running a business in isolation is difficult, so it helps to have expert partners and acquaintances available to share ideas with. If you're looking to network with construction industry professionals, there are several ways to do so. 1. Attend industry events: Look for construction industry conferences, expos, and trade shows in your area. These events often have networking opportunities, such as meet-and-greets or after-hours social events. Conferences are a way to actually meet in person, so the results can be hard to beat. Most conferences have time set aside for networking, allowing you to meet everyone in your niche. More work might involve getting to a conference, but the networking opportunities alone are often worth it. Best results can often be gained by creating a good impression in person, followed by an online contact. 2. Join industry organizations: There are many professional organizations for people in the construction industry, such as the National Association of Home Builders, the Associated General Contractors of America, and the Construction Management Association of America. Joining one of these organizations can give you access to networking events and other resources and benefits. 3. Connect on social media: LinkedIn is an excellent platform for connecting with other professionals in your industry. You can also join LinkedIn groups related to construction and participate in discussions to connect with others. Podcasts are popular now, so you should consider creating one for your niche audience. Regarding networking, though, a podcast can introduce your personality to relevant experts. Getting an interview might be your priority, but you can get better results if they are tempted to contact you directly. Discussing important industry news and updates will be attractive to industry leaders who are passionate about their niche. An interview will give you direct contact with an expert, allowing you to make an impression and promote their brand. You might not get every consultation you desire, but most experts seek ways to promote themselves and will oblige. If you can approach them with a credible website, there is a good chance you can get some of their time. Social media is perfect for networking, mainly when people are open to communicating directly. If you find an active expert in your niche, respond to their questions or comments. By making good contributions, you will quickly be noticed. 4. Attend local business events: Many cities have local chambers of commerce or other business organizations that hold networking events. These can be a great way to meet other professionals in your area and make connections. 5. Volunteer or get involved in your community: Volunteering for a local charity or community organization can connect you with other professionals who share your values and interests. This can be a great way to make connections and build relationships. When you get a chance, volunteer at your kid's school (or a local school if you don't have children of your own). They may need to make props for a school play or a quick paint job. This will open doors for you to meet parents and teachers who might need home service repair or remodeling. Remember, networking is about building relationships, not just collecting business cards. Be genuine, be interested in others, and follow up with people after you meet them to continue the conversation. There are all kinds of groups dedicated to networking. Some are highly structured with performance requirements, exclusive membership, and the payment of dues. Others are free form, come as you please, and no charge. Not every group is suitable for every kind of business. You will find that some groups may not have connections in the market you are...

Duration:00:11:41