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
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.
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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.
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Topics:
MAP vs. PAM,
Secrets Of Highly Successful Contractors,
Construction Forecast,
Contractor Guidance,
Construction Business Goals,
Construction Business Budget
When you're ready to take your construction business to the next level, you might start thinking about "scaling." No, it's not just a fancy term for growth; it's about doing more with less. Scaling is about increasing your revenue without proportionately increasing your resources—fancy yet practical, right? It's like sending an email: your effort is the same whether you send it to 100 people or 100,000.
But, as of now, we also probably feel like we are in the thick of a cost-of-living crisis. This challenges entrepreneurs and is a nerve-wracking time for many small construction business owners.
If you've had sleepless nights worrying about how you'll pay your suppliers or support your staff, you're not alone. You've likely already considered where to cut costs, but it seems impossible when suppliers raise prices.
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Topics:
Construction Strategy,
Profit and Growth Strategies For Contractors,
Success In Owning A Construction Business,
MAP vs. PAM,
Construction Business Inflation,
Scaling Your Construction Business
Construction business owners face various sources of stress that can negatively impact their well-being and overall business performance. Some leading causes of stress for construction business owners include financial pressures, tight deadlines, workforce management, safety concerns, and regulatory compliance. If not adequately addressed, these factors can lead to burnout, decreased productivity, and even business failure.
Many entrepreneurs believe hard work and determination are all it takes to build and sustain a successful business. But when you consider the pressures of running a company, it seems wise to add effective stress management to the list. Left unchecked, stress can erode your passion and undermine performance – not to mention a severe toll on your health.
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Topics:
Cash Flow,
Construction Accountant Who Listens,
MAP vs. PAM,
Contractor Cash Flow Problems,
Do What You Do Best And Outsource The Rest,
Contractor Tips
Taking steps to create a good foundation in the early days of your business is essential for a sustainable and profitable future.
It's rare these days that your prospective leads happen to find your construction business and become a client with no work. Your company has to grab people's attention, turn curious visitors into leads and then convert those leads into sales.
Keep in mind: Marketing-Accounting-Production
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Topics:
Construction Marketing,
Construction Bookkeeping And Accounting,
MAP vs. PAM,
Contractor Tips,
Construction Productivity,
Construction Organizational Change
There is no better time to reflect and think seriously about your construction business. Excellent organization systems add considerable value to any business because they allow you to spend more time working on your business rather than on it.
Year over year and regardless of the economy, one thing never changes; 20% of the contractors earn and keep 80% of the profits because they have a Business Process Management Strategy like our Contractors Success M.A.P. that tells them how, what, when, where and why to focus their limited resources on the M.A.P. = Marketing / Accounting / Production.
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Topics:
The Contractors Account,
Construction Marketing,
Construction Accounting,
MAP vs. PAM,
contractors bookkeeping and accounting,
Accounting Software for Contractors,
Contractor,
Construction Productivity
And It Is Still The Best Construction Software On The Market!
Do You Ever Sit And Stare - At QuickBooks on your computer screen and asked yourselft how can a program that is supposed to be so easy get off track so fast?
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Topics:
Construction Bookkeeping And Accounting,
QuickBooks,
MAP vs. PAM,
contractors bookkeeping and accounting,
Million Dollar Conversations
