Contractor Success Map With Randal Dehart | Contractor Bookkeeping And Accounting Services

This Podcast Is Episode 623, And It's About The Art Of Giving And Receiving Constructive Criticism In Construction Think about the last time you gave or received feedback. Did it inspire growth and improvement or leave someone feeling deflated? When done right, constructive feedback is a powerful tool for driving success. But it's a fine line – getting it wrong can do more harm than good.   For business owners, managers, and team leaders, effectively giving and receiving constructive feedback isn't just a nice skill; it's a necessity. Feedback shapes stronger teams, builds trust, and moves companies forward.    In the construction industry, where projects are often complex and involve numerous stakeholders, giving and receiving constructive criticism is essential for success. Feedback can significantly impact safety, quality, and project timelines, making it crucial to foster a culture where constructive feedback is the norm rather than the exception.   Understanding Constructive Criticism Constructive cr

This Podcast Is Episode 622, And It's About Identifying Gaps To Improve Your Construction Business Marketing Visibility is essential for your handyman or contracting business for several key reasons. Effective marketing helps your company stand out in a competitive market, and promoting your services can help you reach a wider audience and become known in your community.   Potential customers are more likely to hire someone they have heard about or seen advertised. This credibility is crucial for a service-based business like yours, where customers rely on reputation. Sharing content like the project "before and after," tips, and how-to guides can demonstrate your expertise and help you connect with your target audience.   Many construction businesses are vying for the same residents and homeowners, but active marketing helps you stay relevant, ensuring your company remains top-of-mind for potential clients.    Remember that adaptability is also essential when assessing gaps in your construction marketing.

This Podcast Is Episode 621, And It's About Transforming Your Construction Team Through Support And Collaboration Being a construction manager and a business owner requires a unique blend of skills and attributes essential for effectively leading a crew. Leadership is at the forefront of this role, as a construction manager must inspire and motivate their team to achieve project goals while maintaining safety and quality standards. This involves clear communication, conflict resolution, and a collaborative team environment.   Responsibility is another key element. A construction manager oversees the site's day-to-day operations and bears the weight of financial and legal obligations associated with the business. This includes managing budgets, ensuring compliance with regulations, and maintaining client relationships. Making informed decisions under pressure is crucial, as any misstep can have significant consequences.   Handling a problematic construction contractor on a job site can also add to your work ch

This Podcast Is Episode 620, And It's About Overcoming Challenges In Construction Project Estimates And Submissions In the bidding process, contractors prepare detailed proposals that outline their approach, costs, and timelines for a project. This involves thoroughly understanding the project specifications, assessing the site conditions, and determining the resources needed. Competitive bidding requires a balance between offering a competitive price and ensuring the proposal reflects the quality and reliability of the work.   Negotiation plays a key role after bids are submitted. You must communicate effectively with clients and address any questions or concerns. Flexibility can be crucial during talks; you may need to adjust your terms or pricing to meet client budgets without compromising quality.   Here are some of the primary challenges you (or most small construction business owners) face when estimating and submitting bids:   1. Inaccurate Cost Estimates   Estimating costs accurately is one of the

This Podcast Is Episode 619, And It's About Building Connections - Offline Marketing In The Construction Industry n a rapidly evolving digital landscape, it's easy for construction business owners to overlook the power of offline marketing. However, effective offline strategies remain crucial in building relationships, enhancing brand visibility, and generating leads. In this digital age, offline marketing often creates more meaningful connections than digital efforts. Whether you're a small contractor or a more prominent construction firm, understanding and implementing these strategies can help you establish a strong community presence and a loyal customer base.   As a construction professional, you hold the key to unlocking the potential of offline marketing. From networking events and local advertising to engaging community initiatives, these strategies empower you to create meaningful connections that digital efforts often cannot.   In this context, we will explore a variety of effective offline marketi

This Podcast Is Episode 618, And It's About A Deep Dive Into Gross Profit Margin For Construction Contractors Understanding and managing your gross profit margin is crucial to ensuring the sustainability and profitability of your business as a construction contractor. This key financial metric not only reflects your company's financial health but also helps guide your pricing strategies, project management decisions, and overall strategic planning. Profit is the money left in your business after all your expenses have been paid. An income statement (also referred to as a profit and loss report) reveals what profit your construction company made last month or last quarter. Your profits are detailed in two figures, namely: Gross profit is what's left from sales after deducting the costs of goods sold or services provided. Net profit is left from gross profit after operating expenses (your business overheads) are deducted. Note that net profit isn't the final 'bottom line' profit until all taxes have been paid

This Podcast Is Episode 617, And It's About What Every Contractor Needs To Know About Their Financial Dream Team Navigating the world of finances can sometimes feel like trying to build a house without a blueprint. Between managing budgets, keeping track of expenses, and ensuring you're compliant with tax regulations, it's easy to feel overwhelmed. That's where your financial dream team comes in!    Having the right people by your side can make all the difference in staying organized and achieving your business goals. In this blog post, we'll chat about the key players you need on your financial team, what each role brings to the table, and how to find experts who truly understand the ins and outs of the construction industry.    Whether you're a seasoned pro or just getting started,  building a reliable financial team will be a game-changer in achieving your financial goals and securing the future of your business.   How often have you hired someone expecting they knew how construction works, only to find o

If you've been a long-time reader or a contracting company owner, you've probably heard about "Cost of Goods Sold" (COGS). But what does it really mean, and why is it crucial for your construction business's success? Understanding COGS isn't just about accounting—it's about making smart decisions for profitability, pricing, and more.    1. What is the Cost of Goods Sold (COGS)?    COGS represents the direct costs of creating the products/services your business sells/provides. These include materials, labor hours, and even manufacturing overheads. Any expense that contributes directly to a product's creation is included in COGS.   COGS provides critical insights into your business's efficiency and profitability. It's a fundamental metric showing how much you spend to produce inventory relative to your sales.     Contractors often ask us if they can buy our Chart of Accounts with Cost of Goods Sold and import them into their QuickBooks Desktop or QuickBooks Online file. The answer is yes! We also offer the c

This Podcast Is Episode 615, And It's About Valuation Beyond Numbers: Enhancing Your Construction Business Worth When valuing a business, most people think straightforwardly about profits. While financial success is undoubtedly critical, it's far from the only factor determining a business's actual worth. Understanding valuation complexities can offer small business owners and entrepreneurs a clear roadmap for sustainable growth and long-term success.   While financial metrics are undoubtedly important, they do not provide a complete picture of a construction company's worth. For contractors and builders, understanding the nuances of business valuation can pave the way for sustainable growth, effective investments, and successful transitions, whether selling the business or attracting stakeholders.   Here is a fresh perspective on what makes a business truly valuable. We'll discuss traditional valuation metrics, the non-financial factors influencing worth, and practical strategies to enhance value.    The Im

This Podcast Is Episode 614, And It's About Social Media Marketing Basics For Construction Contractors Social media can feel overwhelming. With so much noise and so many platforms, where do you start? The truth is that a great social media strategy can transform how you connect with customers and help you grow your contracting business.   Social media platforms' reach and accessibility are unprecedented. They connect businesses with a vast audience in real-time. Besides their broad reach, social media platforms also serve as valuable tools for businesses to listen to what their customers say about their brand, competitors, or the industry.   Social media allows for active engagement. Construction companies like yours can post questions, respond to comments, and forge stronger customer bonds. Unlike traditional marketing channels, it's a great leveler. All businesses – whether big or small, have equal access. This means smaller companies can compete effectively against their larger counterparts.   Whether you

This Podcast Is Episode 613, And It's About Strategies To Boost Construction Team Morale During Transitions Change is inevitable in any business, but it's rarely easy—especially when managing morale. Significant transitions can leave employees feeling uncertain, disengaged, or even overwhelmed, whether you're restructuring your team, implementing new processes, or pivoting your business strategy.    As a small business owner, you probably ask yourself, "How can I guide my team through this while maintaining morale?" You're in the right place. Maintaining high morale within a construction team is crucial for productivity and overall job satisfaction. The construction industry can be challenging, with tight deadlines, physical demands, and unpredictable work environments. Supporting and motivating your team is essential.    Here are 10 practical tips to help you support your team and maintain a positive, productive environment during significant change. 1. Communicate early and often   Transparency is your bes

This Podcast Is Episode 612, And It's About The Budget Blueprint: Project Cost Control For Contractors Did you know that 39% of projects fail due to budget issues? For small businesses and entrepreneurs, the stakes couldn’t be higher. Managing a project budget is not just about numbers; it’s about ensuring your business is profitable. By understanding the essential steps of project budgeting, you can turn potential pitfalls into opportunities for success.  Whether launching a new service or expanding your services, mastering project budgeting is invaluable for achieving your construction business goals.   Understanding Project Budgeting   Project budgeting is a crucial component of successful project management. At its core, a project budget is the total estimated cost of all the tasks, activities, and materials associated with a project. It serves as a roadmap for project managers, offering a framework for allocating resources and tracking expenses throughout the project lifecycle.   Budgeting is essential f

This Podcast Is Episode 611, And It's About The High Cost Of Not Keeping Up With Your Bookkeeping If you ask 100 business owners what they like least about running a business, bookkeeping will likely rank high. It's an annoying and frustrating chore that takes up much time and is easy to put off until tomorrow.   Avoiding your bookkeeping is dangerous, however. Not knowing your construction company's financial situation can result in missteps that could ultimately cost you your business.   When starting bookkeeping as a construction business owner is challenging, a good first step is to break the process down into manageable tasks.   Here are a few tips to help get you started: 1. Set up a simple system Choose an accounting method and set up a basic system, whether a spreadsheet or accounting software tailored for construction businesses. 2. Gather your documents Collect all necessary financial documents such as invoices, receipts, bank statements, and payroll records. Organizing these into folders can make

This Podcast Is Episode 610, And It's About Practical Applications Of A Must-Read Book Into Your Small Business It's amazing how some books stand the test of time. We usually refer to one of our most recommended, Stephen Covey's The 7 Habits of Highly Effective People, when we mentor our contractor clients and employees. Although it was first published three decades ago, its lessons are still incredibly relevant for business owners. You might wonder – how these habits fit into today's landscape of changing trends, tight deadlines, and constant distractions. The short answer is that they're timeless because they focus on principles that help you stay grounded while growing your construction business.   Below, we'll break down some of Covey's key habits and explore how you can bring them to life in your business today. Think of this as your blueprint for thriving in the chaos, not just surviving it.   1. Be proactive – the power of owning your choices   Covey's first habit, "Be Proactive," is about owning your

This Podcast Is Episode 609, And It's About How Construction Business Owners Can Overcome Digital Hurdles   We are witnessing a remarkable transformation driven by Artificial Intelligence (AI) and automation. While these advancements promise to enhance efficiency and speed, business owners must recognize the enduring importance of soft skills in their teams for long-term success and competitiveness.   The construction industry has also experienced a significant transformation in recent years, driven by technological advancements. From project management software to drones and Building Information Modeling (BIM), construction business owners leverage these tools to enhance productivity, improve safety, and boost profitability.    This blog post will explore how you, as a construction professional, can thrive in today’s tech-driven environment and what skills you can build upon to remain adaptable. Access to the best available tools and information is vital in almost any operation but is especially crucial in t

This Podcast Is Episode 607, And It's About Managing Stress, Prioritizing Wellness, And Spreading Holiday Cheer The holiday season is usually filled with joy and celebration. Still, it can also bring significant stress for construction business owners. With project deadlines, year-end financial tasks, and the hustle and bustle of the festivities, it's easy to feel overwhelmed.    Here are some strategies to help you manage stress and prioritize your well-being during this busy time of year.   1. Set Realistic Goals   As project timelines draw near their conclusion, it can be tempting to push for everything to be finished before the holidays. However, setting realistic goals for yourself and your team is crucial. Prioritize tasks that must be completed and recognize that some projects may need to be deferred until the New Year. This will help reduce pressure and allow for a more balanced method as the holidays approach.   2. Embrace Time Management Techniques Effective time management can be your best ally du

This Podcast Is Episode 606, And It's About Construction Business Review - What Went Right Or Wrong This Year he construction industry is dynamic and challenging, and a business's success or failure can hinge on various factors. As we approach the end of another year, it's essential to take a step back and assess your company's successes and challenges.    Contracting is notorious for its complexities and ever-changing landscape. It is crucial to evaluate what worked well, what didn't, and what lessons we can carry into the following year. These are my key takeaways from phone chats and emails with our clients, industry friends, and followers. Use this as a template - remove, add, and reflect on this list to hold yourself accountable for what you can improve.   What Went Right   1. Embracing Technology   Your commitment to technology was one of the most significant positive shifts this year. Implementing various project management software has streamlined your processes and improved team communication. This

This Podcast Is Episode 605, And It's About The Power Of Accurate Job Costing In Your Construction Business Have you ever wondered how successful construction companies accurately price custom projects? The secret is in a method called Job Costing. For small business owners like you, understanding this process could be the key to increasing your profitability and ensuring that every job is priced right.    Welcome to a world where every material, labor, and overhead cost is meticulously tracked to unveil the actual cost of doing business. Let's explore Job Costing, how it works, and how you can leverage it to enhance profitability.   Understanding Job Costing   Job Costing is a way to assign costs to specific jobs or projects. Unlike methods that evenly spread costs, this approach focuses on the details—tracking materials, labor, and overhead for each job. This makes it especially useful for businesses handling custom projects, particularly construction services like remodeling or home building.   Key Concep

This Podcast Is Episode 604, And It's About Stop Chasing Payments - How To Streamline Your Construction Receivables Running a small construction business is a constant juggle, and managing your receivables is one of the more frustrating tasks. How often have you been waiting on overdue invoices? Do you have enough cash flow to cover next month's expenses? If this sounds familiar, you're not alone. Many small business owners need help keeping their accounts receivable in check, which can ultimately impact their business's health and sustainability.   This guide will provide practical steps to streamline your invoicing process, confidently approach past-due invoices, and ensure steady cash flow.   Understanding the importance of timely invoicing   Timely invoicing is more than just good business practice; it's critical to maintaining a healthy cash flow. When invoices go unpaid, your cash flow takes a hit, potentially affecting your ability to pay suppliers, cover payroll, or invest in growth opportunities. By

This Podcast Is Episode 603, And It's About The Real Cost Of Bad Construction Client Service Have you ever paused to consider the real impact of your business's customer experience? Is it lifting your brand or dragging it down, along with your team's morale? Today's consumers expect nothing short of excellence, so understanding the consequences of poor customer service is vital.   So, what does poor customer service cost you? Let's delve into the details—they might change your perspective.   The ripple effect of dissatisfied customers   Every business faces it sooner or later—a client who leaves less than satisfied. But don't be fooled into thinking that the story ends there. Unhappy customers, in your case, homeowners, rarely stay silent. They're more likely to share their experiences with friends, family, and the vast world of social media. What's worse, a scathing online review can echo for years, impacting your brand's reputation far beyond the initial complaint.    The National Customer Rage Survey high