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?
Read More
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
Small construction businesses have several characteristics that distinguish them from larger firms. These characteristics include having a limited workforce, smaller revenue streams, and a more localized focus.
They are often run by the owners themselves or a small team of employees. They tend to have a more personal approach to their work, as they are usually more involved in every aspect of the project. Due to their size, they are often more flexible and able to adapt to market or project scope changes. However, they may also face challenges such as limited resource access, difficulty securing financing, and increased competition from larger firms.
Over the years, we have had many successful construction clients. The seasoned ones have become lifelong friends and are now retired, living according to their terms. And several are still working according to their schedule with quality, high-paying clients.
Read More
Topics:
MAP vs. PAM,
Secrets Of Highly Successful Contractors,
Construction Forecast,
Contractor Guidance,
Construction Business Goals,
Construction Business Budget
If you're like many construction business owners, you may need help understanding your finances or how you can use your financial information to make decisions for your business. We often get into business because we love a product or service we want to provide, but it's less common that we love managing the financial aspects of our business.
As a construction company owner, you have the best chances of success when you regularly set budgets, develop financial forecasts, and establish goals. Budgeting, forecasting, and goal-setting are best business practices that can help you stay on track and ensure long-term success.
Read More
Topics:
MAP vs. PAM,
Secrets Of Highly Successful Contractors,
Construction Forecast,
Contractor Guidance,
Construction Business Goals,
Construction Business Budget
Many surveys and reports show that nearly half of all new construction companies close their doors within the first five years of opening them. When we speak with contractors who failed, most say it was due to a lack of cash flow. It was pretty obvious, yet when questioned, all of them said they were "Blind-Sided" and were not aware they were running out of cash until it was too late.
There is a point when a contracting company starts to fail, and nothing short of a massive cash infusion can stop it, and a domino effect begins, which is when a series of similar or related events occur as a direct and inevitable result of one initial event.
Planning is essential to give your business the best chances for success. Planning means anticipating challenges and developing ways to successfully address them, so they don't upset your startup.
Read More
Topics:
New Contractors,
Start Construction Company,
Profit and Growth Strategies For Contractors,
New Business Startup,
New Business,
Contractor Guidance,
Construction Business Goals
Knowing which jobs have the highest probability of success and profit before getting involved moves your construction company from an unpredictable roller coaster to a peaceful merry-go-round.
You have what appears to be a high-profit job, and now you think you have it made, and I hope you are right!
The problem is that high-profit jobs can turn into low or no-profit jobs. In some cases, they can bankrupt your construction company because you bid on the project using whatever model you are accustomed to using, and in the end, you wind up with cash flow problems.
Read More
Topics:
High Profit Construction Projects,
Profit and Growth Strategies For Contractors,
Contractor Guidance,
Construction Business Goals
How are you and your construction business? Have you considered what you'd like to achieve in the coming twelve to eighteen months? Or maybe your set of priorities for the next half of 2021?
Contractors like you are typically highly creative and optimistic; thus, you often have difficulty narrowing down your ideas from among all the exciting possibilities, whether it's an opportunity to expand to a new market or choose a better time management strategy.
While some of you love planning, others feel overwhelmed by the process. So how do you decide on just a handful of goals that take priority, with so many moving parts that make up a construction business?
Read More
Topics:
Construction Strategy,
Systems And Processes,
Secrets Of Highly Successful Contractors,
Contractor Operating Tips,
Construction Business Goals
