Construction

Denise, As you may not know, I have been blessed all my life. Matt ...

From one AB blogger to another, way to go! It is thrilling when you see that book for the first time, isn't it? May you have a ton of success.

We are all short on some knowledge. Thor, as you well know, the older we get the more we realize what we don't know. We both appreciate libraries and subject matter experts. However, no place or person knows it all. We all must keep sharing and searching to become very good (and profitable) at our construction profession ...

This is a helpful explanation to the potentially complex financial side of the construction industry. Having to explain this post in such simple terms, however, seems to be central to the industry's current difficulties. Small business contractors need to have better business know-how before they start their venture to better succeed. After all, if we need to be told how to calculate mark-up, margin, etc., then how effectively can we run our business. And if this is something we need to be told, it seems that we should be the ones holding a shovel - not a clipboard.

As you know, staying small and static, cashflow is not a problem. However, if we grow our business in a dramatic way, that 15 day lag can cause a credit line to be drawn down or someone will go unpaid. Selective growth with above average paying clients would be my thought here. Collecting overdue A/R is one of a president's responsiblities. It is a critical success factor to business. If everyone is paying timely or before, the business has some options.