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

This Podcast Is Episode Number 0380, And It's About How To Grow Your Construction Network Without In-Person Events Networking can be a crucial way to keep your construction business growing.   Profitable contractors attend networking events not because they have nothing better to do; they do it because it pays off. You can either spend hours doing office tasks like bookkeeping or getting face to face with someone who may need your services. Meeting people gives you the chance to build and develop relationships, hire you, or refer you to someone who might.   Regardless of your industry or business size, it is hard to ignore the benefits of forming professional networks for potential partnerships, expanding your client base, and scaling up. However, while we are constantly reminded about the importance of networking, reaching out to grow your network isn't the same now, thanks to the COVID-19 pandemic.   Social restrictions to prevent spreading the coronavirus do not allow traditional networking approaches su

This Podcast Is Episode Number 0381, And It's About The Value Of Service Agreements In Your Construction Company It goes to the heart of the question of the difference between a customer and a client. Service agreement holders are more likely to be clients who add more value to your construction company because they represent your customer base's most loyal segment.  Every service agreement customer represents future work. In the meantime, service agreement clients are a source of cash flow and are predetermined to call you instead of your competition when repairs are necessary. Non-service agreement customers are more likely to be customers and fickle. They may call your contracting company for future work or decide to shop the competition and use the information they find to negotiate for a lower price. In some cases, they may not even remember you or your construction company name. Besides, your replacement sale close-ratio usually is higher with service agreement clients, and your overall pricing and rela

This Podcast Is Episode Number 0380, And It's About Contractors, Know What You're Good At And Generate More Leads The pressures of owning and operating a construction company can be, at times, almost unbearable. Unlike any other business, there's no "one size fits all" solution in your toolbox to fix your dilemma. Everything is created twice. First, in our minds, and when we do the work to bring them into physical existence. Take your power and take control of your ability to Be-Do-Have. You can re-write your scripts and take control and responsibility for the outcome of your Construction Company by using your imagination, conscience, and excellent implementation of your business plans. Concentrate Successful contractors know what type of contracting they are good at doing. SWOT Analysis is one of the tools we use in strategic planning for construction companies to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in determining the particular target market. Strengths - are projects tha

This Podcast Is Episode Number 0379, And It's About Five Ways To Increase Your Construction Business Profit First, we always ask our clients to decide what they want from their construction company. Do you want to get rid of the boss? Do you want to work in a more structured environment? Are you sick and tired of working for the boss's son or daughter? Do you want to make much money? Do you wish to make enough money to pay the bills and enjoy a vacation now and then? There are no wrong answers, whatever is right for you is the correct answer; however, you need a reason to do it otherwise when the going gets tough, and it will, you will either win or lose depending on your purpose. With a big enough reason, you will find a way to win.   For many small construction companies, the best way to improve profitability is to increase turnover, as there's no limit to sales, but there is a limit to how much you can reduce your costs.   Let's look at how you can focus on each of the five ways in our profit increase calc

This Podcast Is Episode Number 0378, And It's About The Value Of Unique QuickBooks Reports Specific For Contractors Some applications make almost everything easy, including accounting software. Too many contractors find out too late the adage "You get what you pay for" still applies.   Hundreds of contractors and regular bookkeepers have told us how simple QuickBooks is to use, yet they cannot understand why QuickBooks for Contractors is so hard to use, and it is getting harder every year. I agree with them.   Making a lot of money as a contractor is easy if you know what to do, and I don't mean your ability to produce more fieldwork than anyone else, although that does help.   Each contractor type has unique construction accounting needs, which means if the QuickBooks process is custom-fitted to each construction company's needs, it is a beautiful thing.   We have listened as our contractor clients have described to fellow contractors how "fast and easy QuickBooks is and what wonderful reports it generates,

This Podcast Is Episode Number 0377, And It's About Troublesome Customers Every Contractor Should Learn To Recognize And Deal With Customers are disloyal price buyers who purchase commodities and services with cost as their primary consideration. Clients are loyal value buyers who purchase goods and services with suitability as their primary consideration.   Every businessperson knows that customers and clients are not created equal. Clients are loyal, while customers will stray if they're offered a slightly lower price elsewhere. Some customers are demanding, while clients only call when they wish to hire you right away.   Every business must deal with a variety of customers and clients. But there are certain types of customers who do more harm than good to your construction business - they drain your resources while adding little to your revenue.    Your business strategy will determine which group you want to serve, and there is no right or wrong answer, just different approaches.   Here are five troubles

This Podcast Is Episode Number 0376, And It's About Brace Your Construction Business From Recession The pains caused by an economic downturn can be excruciating, which is why most of us dread it. A recession can mean massive layoffs, jobs becoming harder to find, and wages frozen, which means consumers hunker down and spend less-- often worsening the slowdown unknowingly.  For most businesses, especially small businesses, recessions can be brutal. Just take, for example, the Global Financial Crisis (GFC) that struck the world in 2008. Between December 2008 and December 2010, approximately 1.8 million small businesses shut down. When Investopedia looked into the financial crisis's impact on small businesses after a decade, they found out that business creation has not yet returned to pre-crisis levels.  As the battle against COVID-19 is far from over, global financial markets have been impacted, consumers are tightening their belts, and global demand is falling. All these signs point to one thing: the next eco

This Podcast Is Episode Number 0375, And It's About What To Do If Your Construction Business Is Operating At A Loss Operating at a loss means you’re spending more money than you’re making. And while it’s not uncommon, especially for new businesses, it’s still not an ideal situation and shouldn’t continue in the long term. Otherwise, you will eventually run out of cash reserves and be out of business. So the first thing you need to identify is why you’re operating at a loss. If it’s because you’re still in the start-up phase, then you might not need to worry too much as long as you’ve got enough cash to meet your costs. But if the losses are due to a decline in sales, then it’s time to review your construction business and, if necessary, get professional help. You’re operating at a loss if you: Don’t have enough money to pay your bills; You’re in overdraft without a plan to pay it off; You’re not selling as much as you anticipated. Do any of the above apply to you? Let’s look at ways you can remedy the situa

This Podcast Is Episode Number 0374, And It's About Questions To Ask As Your Construction Business Reopens As small business owners look to operations after reopening, there are some critical business questions to ask. These questions will help you determine what adaptations you want to keep, whether your construction business model is working, if there are additional changes you want to make to keep your company operational through future economic downturns.   It's not always fun to do this sort of examination, but the answers to these questions will help you make the best possible future decisions.   1. What worked and what didn't work in my construction business model? Almost all small business owners had to make changes to their business model. Whether it was hosting meetings with clients on Zoom or learning about encryption technology to allow employees access to sensitive information from home, most small businesses adapted in some way.   Ask yourself: Did I have to adapt to my construction business m

This Podcast Is Episode Number 0373, And It's About Tax Tips For New Construction Business Owners The tax deadline is postponed to July 15, 2020. If you just started your construction business last year and haven't filed yours yet, this post would be helpful.    Your tax bill is based on reports produced by your accounting system. Want to avoid paying more than you should come tax time? Or a frantic last-minute search for missing financial records?    New construction business owners have a lot on their plate, and can quickly lose track of an approaching tax deadline or financial data needed to submit their return.   Organization is key when preparing for tax time, as is taking advantage of the many tools and resources out there to support new entrepreneurs.   Set yourself up for success by following these four pillars of painless tax prep.  Commit to clean bookkeeping from day one Year-round, effective bookkeeping is the best way new construction business owners can minimize tax season stress. With the ful

This Podcast Is Episode Number 0372, And It's About Sure-fire Construction Marketing Plan In Eight Easy Steps If you're serious about getting the best value you can for your marketing budget, you'll need to develop a marketing plan. Many contractors are having challenges adapting to this ever-changing economy. Trade contractors who rely on the same general contractors they did a few years ago to supply jobs to bid on are finding it more difficult to recover and find work.   It appears that history is repeating itself. Instead of yellow pages, I see many well-intentioned people with their minds and hearts in the right place with a lot of really great ideas on what works and fails in social media. I certainly don't know what works for every contractor; however, what I do know is that every construction company is unique, and what works for your competitor may not work for you.   Below we outline eight simple steps for making your marketing efforts more effective. 1. Know your customers Firstly, you need to ide

This Podcast Is Episode Number 0371, And It's About Beyond COVID-19 - How To Build Value In Your Construction Business We've said it before, and we'll say it again – this has been a challenging few months for all of us, but there is no better time to think seriously about your business.    We all understand the economy has been tough for construction owners. I know you have made severe adjustments in your lifestyle and your businesses; however, remember this too shall pass because there is nothing new under the sun.   The key to building value in your construction business is to plan the process in a systematic way, whether you're aiming to grow your business in any economy or groom it to get a better price from a buyer. In this article, we have compiled a few tips to create value in your industry.   1. Looking through the eyes of buyers Whether you just want to build a more substantial business or looking ahead to the day when you might want to sell it, it helps to think of your business through the eyes of

This Podcast Is Episode Number 0370, And It's About How Cash Flow Forecasts Help Contractors Managing cash flow is a vital part of running a successful construction business. Some contractors think managing cash flow means keeping track of how much money enters and leaves their business, but there's actually more that goes into it.  [Starting Cash + Cash In - Cash Out] = Cash Flow Contractors and sub-contractors know there is more to profits than what is shown above, and most of you rely on your "gut feel" to see when the project has made a profit or not.   Cash flow forecasting is an incredibly valuable tool that helps you anticipate cash flow issues, plan for days when your cash flow is limited, and show the bank that you are prepared. It's a necessary process that you shouldn't ignore.   Here are some ways cash flow forecasts help construction business owners. They help identify cash flow issues before they happen. Most construction companies go through slow periods. Sometimes, those periods are appar

This Podcast Is Episode Number 0369, And It's About Working Out An Effective Marketing Budget For Your Service-Based Company “How much should I spend on marketing?” Most construction business people ask me this question at some stage. Many small company owners find working out how much to spend on marketing a tricky exercise to calculate.    Generally, there are five ways to work out a marketing budget for the year. Remember that these are marketing budgets, not advertising budgets. Marketing covers everything you do in your business that creates awareness, including such activities as advertising, brochures, competitions, trade shows, demonstrations, travel, direct mail, email campaigns, your website, and sponsorship.   1, No idea at all method Some service-based businesses don’t have any budgets. They just advertise either when they feel that sales have slipped that they need an extra project, or when they get duped into advertising by some advertising salesperson (“Buy now, and we will give you 50% extra

This Podcast Is Episode Number 0368, And It's About Build Or Rebuild Your Construction Company By Bootstrapping   Bootstrapping is figuring out how to reduce the cash you need to start or re-start your business, by eliminating any unnecessary overheads while finding out who will give you a hand.   If for whatever reason, you're not able to raise enough capital to start-up, you might be able to get what you need by 'bootstrapping' (finding what you need through unconventional or low-cost methods):   Have others lend what you need   You don't have to purchase new equipment to start your business. Think about what items you might be able to borrow over the short term or do without until the business grows.   Draw up a list of your asset needs and make a determined effort to borrow from others what you can while searching online for second-hand items that will save your business money. Are there people you know that are already in the construction business who could lend you what you need?   Call in favors Time

This Podcast Is Episode Number 0367, And It's About Boosting The Social Proof Of Your Construction Business Online While the world is staying six feet apart, most small businesses are staying afloat and connected online. Now is a great time to boost the social proof of your construction business virtually.   You won't build a loyal client base if you can't earn your visitors' trust, which is why companies value social proof so highly. But proving your construction business's value online takes a unique skill set, one you can nurture by learning from the marketing industry professionals.   Befriend Experts Experts love teaching others what they know. While they do make money from their knowledge, they also offer discounts to friends. If an expert loves you enough, you might even convince them to talk with you, free of charge.   Experts are people, and make friends like anyone else. Since you are looking to build social proof online, joining an expert's Internet community is the first step toward meeting them.

This Podcast Is Episode Number 0366, And It's About Construction Business Communication Strategies During A Pandemic Most small business owners face a time in their career when they have to communicate in ways or about topics they aren't confident with. COVID-19 has put construction business owners in the position of having many conversations that are uncomfortable and stressful.    Whether you're communicating with employees about company issues during the pandemic, hoping to negotiate a rent reduction to the landowner, or changes to credit terms to your banker, here are some strategies that will help you be more effective in your communications.    1. Be transparent It's vital during a crisis that you're transparent about your company's situation. You might not feel good telling your suppliers that the business has slowed considerably. Still, honesty and transparency will help them understand your situation and encourage them to work with you on a solution. The same is true of employees. Your staff needs

This Podcast Is Episode Number 0365, And It's About How To Manage Your Construction Firm's Cash Flow During Crisis Dealing with unexpected cash-flow difficulties, even if you're working hard to avoid shortfalls, is hugely distracting. A formerly reliable client might take much longer to pay than anticipated leaving you out of pocket. If you're starting a construction business, it could simply be taking longer than expected to turn a profit in these trying times.   Red light warnings Develop red light systems to warn you automatically if something needs querying: Check as early as possible if leads, orders, or sales, fall below a certain threshold, or a substantial customer ends their subscription (recurring service). Pay attention to your Key Performance Indicators. Make sure you have regular feeds of how your business is performing. You also need to know about any substantial invoices that are in dispute, particularly overdue debts and clients exceeding their credit limits. Building productive relationshi

This Podcast Is Episode Number 0364, And It's About Bridging Generation Gap In The Construction Industry   These days, it’s inevitable that a diverse group of older and younger workers cross paths in the construction industry. After all, the young, tech-savvy, socially conscious demographic known as Gen Y (Millennials) and Gen Z are currently the largest living generation in the U.S., navigating the workforce in record numbers. And the boomers may be retirement age, but that doesn’t mean they’re ready to stop working. Many baby boomers are choosing to enjoy “encore careers” – jobs that allow them to continue to apply their skills and experience to personally meaningful projects. Here are a few ways to help these two groups work together, so your construction business benefits from their unique and complementary skills.  Baby boomers and millennials in the construction business Millennials offer incredible potential to the businesses they work for. Young, tech-savvy, and interested in making a difference in th

This Podcast Is Episode Number 0363, And It's About Could Your Construction Business Benefit From The Gig Economy? At some point, every business owner needs outside help to improve efficiency – or to free up their time so they can take steps toward future growth.    The trouble is, the cost of hiring regular staff, even on a part-time basis, can eat up a company's budget – especially in the early years when you're still just finding your feet.     The rise of the remote freelance worker (otherwise known as the "gig economy"), especially during this time, can offer construction business owners a simple, cost-effective solution when they need extra help with a one-off "gig" or short-term contract.   A look at the pros  For many construction company owners, the bottom line is often their most significant motivation for hiring independent contractors. It's a much less costly option than taking on an employee – and this can be especially true with international workers whose rates reflect a lower cost of living.