Setting financial goals for your construction business may be one of your most important responsibilities as a leader and business owner. Your financial goals serve as far more than wishful projections; they form the backbone of your road map for success, both internal and external. Financial goals are something that every single business should possess regardless of its market, model, or size. Let's explore how to set and track financial goals that empower your business to thrive.

Why Financial Goals Matter for Your Construction Business

Financial goals are more than just numbers on a spreadsheet. They are the roadmap that helps you plan and make strategic decisions. Without clear goals, it's like driving without a destination in mind. Think about it—how do you know if you've arrived if you never set out where you wanted to go?

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Topics: QuickBooks Contractors Financial Reports, Business Process Development For Construction, Business Process Management For Contractors, finance, Construction Business Goals, Financial Modeling, Financial Statement, Goal-Setting in Construction

Delegation is a skill often discussed but rarely mastered, especially by small construction business owners wearing multiple hats. The balancing act of managing daily operations while pushing for growth can be overwhelming. 

 

Imagine if you could free up hours in your day to focus on strategic decisions rather than getting bogged down in every minute detail. This is where the art and science of delegation come into play. 

 

Understanding and implementing effective delegation strategies can enhance productivity, foster team growth, and drive your business forward.

 

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Topics: Leadership Styles, Construction Project Managers, Contractor, Contractor Tips, Project Management, Contractor Operating Tips, Project Management For Construction, Construction Productivity, contractor delegation

Procrastination can be a formidable foe for small business owners. With endless responsibilities, it's easy to fall into the trap of putting off important tasks for later. 

 

The fast-paced construction world can lead to missed deadlines, increased costs, and frustrated clients. Delayed decisions and unfinished tasks not only affect timelines but can also impact budgets and client satisfaction. 

 

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Topics: Leadership Styles, Construction Project Managers, Contractor, Contractor Tips, Project Management, Contractor Operating Tips, Project Management For Construction

Effective leadership is crucial for project success in the dynamically challenging construction environment. A Project Manager (PM) oversees operations, guides teams through day-to-day tasks, ensures effective communication, and maintains stakeholder alignment. As many of you, our readers and clients, are both wearing two hats - PM and Owner; it's essential to understand the advantages and disadvantages of taking on both roles.

 

As a Project Manager and a Business Owner, you deeply understand the entire process, from planning to execution. This holistic view allows for better decision-making. You have the authority to implement your vision and strategies, ensuring that quality and efficiency align with your goals.

 

You can build long-term relationships with clients, subcontractors, and suppliers, enhancing trust and collaboration. As the owner, you can choose the projects you want to take and the direction of your business, allowing for personal and professional growth.

 

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Topics: Leadership Styles, Construction Project Managers, Contractor, Contractor Tips, Project Management, Contractor Operating Tips, Project Management For Construction

In the competitive construction world, having a strong sales strategy is essential for sustaining and growing your business. A well-defined approach can increase your project pipeline and create lasting client relationships. 

 

It will give you a framework for generating leads, closing deals, and ultimately increasing revenue through nurturing existing accounts, thought leadership, and practical pricing discussions.

 

Here are some effective sales strategies to help construction business owners like you achieve solid sales success.

 

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Topics: Increase Sales And Profits With Tiny Changes, Increasing sales, Outsourced Accounting For Contractors, Increase Sales, Contractor Marketing, We Don't Close Sales We Open Relationships, Contractor, Contractor Tips, Contractor Operating Tips, sole proprietor

External factors, such as economic changes or technological advances, can significantly impact whether a business will thrive or fail. The rise of sharing and gig economy apps is an excellent example. These apps gave consumers more affordable options for daily tasks and errands and provided individuals with a new way to earn money on their schedules.

 

Running a business is a fascinating journey. But it's essential to thoroughly evaluate your company before moving further to ensure you're creating a sustainable and successful venture.

 

Costs may be high, requiring careful planning. You may need to educate your customers and convince them to adapt to your business before they're ready to use it or hire you. And let's remember the competition that already exists in the market.

 

 

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Topics: Outsourced Accounting For Contractors, Construction Accounting, MAP vs. PAM, Contractor Marketing, Outsourced Bookkeeping Services, Contractor, Contractor Tips, Contractor Operating Tips, sole proprietor

Does this sound like you? Maybe you started your company with a few friends and relatives as your earliest clients, and you thought your overhead expenses would be low since you worked out of your home. You made a decent living for yourself, hired a few sub-contractors per project, paid your suppliers, and earned a profit—at least that is what your tax preparer said. 

 

Things begin to change, and the reality of the construction industry begins to dawn on you. Those early customers who were your friends because you could get faucets, fixtures, and materials at wholesale prices now tell you they were happy with your work. They want your construction company to do all their future work (and refer you to their closest neighborhood friends) as long as your price is lower than the other bids they are getting.

 

Yes, this kind of business builds your integrity, but at the same time, you are dirt-poor. Why? Because as a construction company owner, you now have overhead no matter what business entity you operate. It's not just office overhead; you have field overhead, too. 

 

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Topics: Outsourced Accounting For Contractors, Construction Accounting, MAP vs. PAM, Contractor Marketing, Outsourced Bookkeeping Services, Outsourced Accounting, Contractor, Contractor Tips, Contractor Operating Tips, sole proprietor

Fraud can be a significant threat to businesses of all sizes in any industry. Construction companies are not spared and are even more vulnerable to various fraudulent activities, from bid rigging and inflated costs to payroll fraud and misuse of funds. 

 

Many small business owners have become increasingly concerned about fraud after the pandemic. According to SAP Concur (An expense management solutions company), a staggering 85% of businesses surveyed expect the risk of fraud to continue. Making matters worse, many fraudulent acts originate from within businesses themselves. 

 

What can you do as a construction business owner with three or more employees? You can start with essential internal controls that you can implement to safeguard your business:

 

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Topics: Outsourced Bookkeeping Services Red Flags, Outsourced Accounting For Contractors, Outsourced Bookkeeping Services For Plumbing Contr, Construction Accounting, Outsourced Bookkeeping Services, Outsourced Accounting, Contractor, Contractor Tips, Contractor Operating Tips

Your to-do list is often long and constantly growing longer when you're an entrepreneur. There are a lot of things you need to do, and it can feel like they're all urgent. In such cases, it's easy to push essential tasks to the side and focus on less vital activities, but that often means you miss deadlines, make mistakes, or always feel like you're trying to catch up.

 

Here are some ways to determine the most productive order to complete your tasks.

 

1. Know all of your tasks

 

It isn't enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps.

 

Write a list of the activities you must do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they'll take to complete, and their deadlines.

 

Now you know what you'll need to complete and when.

 

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Topics: Construction Accounting, Contractor, Contractor Tips, Contractor Operating Tips, Construction Productivity, crisis

In today's competitive business landscape, establishing a personal brand is essential for standing out in the construction industry. Whether you're a contractor, architect, or engineer, cultivating a professional image differentiates you from competitors and fosters trust and credibility among clients and partners. 

 

The words "personal brand" are still somewhat controversial and carry an unfortunate cast of self-promotion and vanity. However, personal branding is more important than ever in the job market, and those without a clear personal brand or mission to create one are lagging behind the competition. 

 

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Topics: Construction Bookkeeping Personalities, Construction Accountant Who Listens, Construction Personal Branding, Contractor Brand, Personal Brand, Construction Company Brand Building