Overhead Creep
By Michael StoneOverhead creep is one of those subtle things that business owners often don’t notice. It leads to cash flow problems real quick.
Watermelons and Sales Leads
By Michael StoneYou might not think of watermelons, but one of our clever coaching clients shared a method he’s used to attract new leads for his business.
Payment Schedules for Cash Flow
By Michael StoneA good payment schedule keeps you paid for the work you are doing. If you're using a 1/3, 1/3 and 1/3 schedule, you are financing most of the job out of your pocket.
Rounding Up, not Down
By Michael StoneWhen we talk about making money, it's rarely about big chunks of change. One overlooked item that costs money is rounding numbers. For instance, your markup.
Employees to Volume Ratio
By Michael StoneIn our book we talk about the ratio of employees to dollar volume of business. Many contractors ignore this ratio and get caught up in the urgency of building a job.
Cost-Plus – A Homeowner’s View
By Michael StoneA very nice gentleman called me last Friday. He related a story about his home remodeling project. It was done a Cost Plus job, the "plus" was negotiated at 18%.
Marketing is just like planting seeds
By Michael StoneFor those who don’t understand the need for an ongoing marketing and advertising program for your business, let me try this analogy:
Business is business
By Michael StoneWe’ve noticed the same problem that we’ve seen with other specialties. They believe that because their work is focused on one thing, their business operates differently.
Transparency
By Michael StoneTransparency, as I understand it, is opening your books to your potential clients and showing them all the numbers pertaining to a job you are quoting.
Connecting with Potential Clients
By Michael StoneIf you aren’t getting a response to your advertising, either printed or on the web, you aren’t connecting with your potential clients. You must connect with them.
Paying a Bonus to Employees
By Michael StoneWe are approaching the time of year when the subject of bonuses comes up. Your employees might be saying, “Do you suppose they will pay us a Christmas Bonus this year?”
Missed Opportunities Cost Money
By Michael StoneI talk with contractors all the time who miss one opportunity after another and never seem to connect the cost of this miss.
Your Clients and Your Subs
By Michael StoneNow, if you are a subcontractor, it doesn't matter what trade, if a general contractor has hired you to work on a job your obligation is to that general contractor only.
Be Debt Free
By Michael StoneThe final item on our list of things you can do to assure positive cash flow is to avoid debt. If you are in debt, set the goal of becoming debt-free.
Be Prepared to Pay Taxes
By Michael StoneFar too often when contractors come to us for help they are behind paying one or more of their taxes. Don’t let this happen to you.
Watch Your Overhead
By Michael StoneIt's important to set goals for your business. It's also important to track, on a month by month basis, how close your actual finances are to those goals.
Use the Right Payment Schedule
By Michael StoneIf you want positive cash flow in your construction business, make sure you're using the right payment schedule on your contracts.
Create Accurate Estimates
By Michael StoneIf you forget to include the cost of insulation, you’ll be paying for it out of your own pocket.
Your Opportunity Clock
By Michael StoneAre you getting the most out of your day? Are you taking advantage of your time here, to do your best, both for yourself and your family?
A Bait and Switch Scam?
By Michael StoneLast weekend I passed a billboard on the side of the road. It loudly declared, "We will build your new home for $32 a square foot."
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