Production Budgets
By Michael StoneWe recently heard from a company that took over a $200,000 hit (spread over several jobs) because of actions the job superintendent took.
Making Money, Breaking Even, Losing Money
By Michael StoneThis is the criteria I use to tell if a company is making money. It isn’t the only measure, but it’ll give you an idea of how your business is doing.
What Happens To Your Business If You Can’t Be There?
By Michael StoneIf you own a business, your illness or death will create business problems for your families and your employees.
The Advantage of Continuing Education
By Michael StoneIt doesn’t matter if you’ve been doing things the same way for 1 year or for 65 years, taking the time and initiative to find out if there’s a better way increases your odds of success.
Markup and Profit Recording
By Michael StoneMichael Stone discusses why contractors go out of business, the correct formula for markup, charging for change orders, employees and cash flow, and payment schedules.
Relationship Between Sales and Owner’s Salary
By Michael StoneWe had a question come in this week from a contractor asking about how to calculate the volume of business a company needs to support the owner’s salary.
Making Money, Losing Money or Breaking Even, what now?
By Michael StoneLast week we discussed knowing where you stand financially, whether you are making money, losing money, or breaking even. What now?
A Yardstick for Success
By Michael StoneIt’s the last Wednesday of the summer, which is a great time to look back and see how your business fared.
Invest In Your Business
By Michael StoneInvesting your time and effort in discovering how to run a successful construction business is a key to success.
Spec Homes / Custom Homes
By Michael StoneI was asked for information on the diffe …
Spec Homes / Custom Homes Read More »
What Goes On a Business Card?
By Michael StoneOne of the topics was business cards, we spent several minutes reviewing the value of a business card and how it can help promote your company.
Building a Successful Construction Business
By Michael StoneI take many calls from contractors whose business is more like a low-paying job than a successful construction business. Some ask, “Is it even possible in today’s economic climate? Can my business make money?”
Words from an Expert on Hiring Contractors
By Michael StoneA contractor sent us an online article written by a real estate investor with the purpose of educating you on “how to develop a fair relationship with your contractor.”
Profitable Planning
By Michael StoneAs the business owner you’re taking risks, so you deserve to be paid a fair salary and make a profit. This is how it gets done.
Construction-Related Franchises
By Michael Stone“I was wondering if you had any advice for contractors when approached about a franchise opportunity.”
Who Pays Your Salary?
By Michael StoneThe next time anyone, including yourself, wants to complain about how much money you make, think about this quote from Henry Ford.
Supply and Demand
By Michael StoneThe services offered by construction businesses are in high demand right now. Can we look at this industry from another viewpoint?
Investing in Your Business
By Michael StoneConstant input from others is necessary if you want to stay on top of both your business and your personal life.
Value Your Work
By Michael StoneYour work is vital; rather than worrying about your price, recognize and sell the value you bring to a project.
Is a Contractor’s License Important?
By Michael StoneWhy would you choose someone that has chosen to work without a business license for 30 years?
Bigger doesn’t always mean more profitable
By Michael StoneOften when I talk with contractors, I hear, "I want to grow my company so I can make more money." Consider this, if size mattered, dinosaurs would still be here.
Business Owner, or Hired Labor?
By Michael StoneEver heard the old saying that something “pushed your buttons”? It’s an emotional reaction, usually not positive. Well, Devon took a phone call last week that pushed my buttons.
It’s Not For Us
By Michael StoneMichael Stone shares about a note from a contractor who initially found the Markup & Profit Revisited book “too extreme” and “not for us” – but now realizes it makes sense.
Business Survival
By Michael StoneI often start the year with a reminder to check your business practices, and this year I think it’s more important than ever to get on top of and make sure you have your business in order.
Selling a Construction-Related Business
By Michael StoneI’ve heard any number of people say they are going to build their business up, then sell it. Let’s talk a bit of reality.
Do You Pay Bonuses for Work Done?
By Michael StoneIf you’ve raised kids in the past 20-30 years, you know the new rules – no one loses, everyone gets a prize. Don’t keep score because it hurts their feelings.
Hang On – Getting Through These Times
By Michael StoneMichael Stone offers suggestions on how to keep your construction business strong during this Coronavirus emergency.
Get Ahead of Job Delays
By Michael StoneJob delays are often caused by the things we don’t see; you can’t stop all delays but you can get ahead of them.
Becoming a Construction Business Owner?
By Michael StoneWhen people lose their jobs, many decide to start their own business
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.
Are You Worth It?
By Michael StoneConstruction is a tough industry. For some, the hardest part is making the sale. They’re out of their comfort zone. They don’t want to talk about money or ask for the sale.
When Business Dries Up
By Michael StoneIf sales have dropped off significantly or you’re under a stay-at-home order, here are 3 things that you need to do now for both your business and your family.
Who You Listen To Matters
By Michael StoneAs I watch young people decide to become a coach or consultant in construction, I wonder how much they really know.
A Market in Holiday Lighting
By Michael StoneYou need to start planning your advertising to potential clients that you are available to install and take down Christmas lights and decorations.
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.
Making a Positive First Impression
By Michael StoneBuilding trust always starts when you are first contacted by a potential client. Michael discusses how to do it right, and how to do it wrong.
When Business Returns
By Michael StoneAt some point this health crisis will slow down and go away. When it does, there’s a good chance we’ll be doing some things differently. But some things won’t change.
Paying Taxes Beats Losing Money
By Michael StonePaying income tax means you’re running your business well.
Let Construction Employees Learn from Mistakes
By Michael StoneI’ve talked to numerous construction company owners recently who are having problems with scheduling, getting jobs done, getting the right people to the right jobs, etc.
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.
Collecting Payment from a Dishonest Homeowner – Updated
By Michael StoneNot all of your clients are honest. There are even a few who have no intention of paying you for the work you do.
Habits for Success
By Michael StoneAre your habits helping your company grow, or are they holding you back?
Setting Priorities
By Michael StoneIf you’re a business owner, prioritizing how you spend your time is critical. There aren’t enough hours in a day to do everything that needs doing.
How Much Do You Pay the Owner?
By Michael StoneDuring a recent class I taught, it was clear many in the audience didn’t understand that their sales volume must be enough to support the salary of the company owner.
Paying Owner’s Salary
By Devon StoneOur newest six-hour class, based on the book “Markup & Profit, A Contractor’s Guide Revisited”, is now available. This clip is from the first part on financial requirements.
Loaning Your License
By Michael StoneIt’s interesting how friends, relatives, and other contractors try to rope you into their schemes by asking to borrow your license to build their jobs.
Construction Cash Flow and Business Success
By Michael StoneConstruction cash flow is like every other business; there must be more cash flowing in than flowing out or the business won’t survive.
The Same Business Principles Apply to Every Trade
By Michael StoneMost of the training available for construction focuses on production. We talk about business, and business principles don’t vary no matter what type of work you produce.
Salary and Markup
By Michael StoneOne of our clients called with cash flow problems. Leads were coming in, sales and production was good, correct number of employees for the volume of work, but no money.
State by State Guide to General Contractor Bond Amounts
By Devon StoneGeneral contractor licensing and surety bond requirements by state to help prepare for running a sound business.
Do Your Work
By Michael StoneFor the past few years I’ve had general contractors tell me that they can’t get specialty contractors to return their calls, show up on time or show up at all for a job. Now I’m hearing from generals who are getting calls from subs, looking for work.
Purchasing Commercial Insurance
By Michael StonePurchasing commercial insurance can be a frustrating experience for many construction businesses.
Expect the Best, Prepare for the Worst
By Michael StoneIf the worst happens, will those left behind be able to either carry on or close shop without your presence?
Is it a Construction Business, or a Hobby?
By Michael StoneQuestion came from a friend the other day. He said, "Michael, how do you determine whether someone in construction has a business or a hobby?"
Paying Yourself
By Michael StoneYou’re in business to provide a service and make a profit doing it. Having the financial info you need to make decisions is critical for your business success.
Getting Ahead
By Michael StoneAs we head into Memorial Day weekend, we want to share an upbeat note we received in April from a client.
Make Construction Work for You
By Michael StoneConstruction can be a tough business, dealing with clients who don’t realize what we’re worth, while our bodies take a beating to make their homes better.
Hope is Not a Strategy
By Michael StoneMichael Stone shares thoughts on protecting your family and construction business from whatever the economy or government throws our way.
Ten Cardinal Rules for Construction Business Owners
By Michael StoneTen Cardinal Rules for a successful construction-related business.
Calculate Your Cost Per Lead
By Michael StoneWhen you calculate your cost per lead, you’ll know what you need to spend on marketing to meet your sales goals.
Like breathing, being profitable isn’t an option
By Michael StoneIf your construction business isn’t profitable, it won’t survive. You have an option of being competitive in construction. You don’t have the option of being profitable.
Make Things Happen
By Michael StoneWithout looking, how do you think your business did this year? Are you feeling more profitable or less? Is your business running more smoothly or are the problems overwhelming?
Managing Jobs: This is Where it Went Bad
By Michael StoneMichael shares a story from a contractor who delegated to the wrong person, and that’s where the job went bad.
Advice for a New Contractor
By Michael StoneMichael shares a note from a new remodeling firm, asking questions that are often asked by new business owners.
Guidelines for Success
By Michael StoneGuidelines to a more successful construction-related business.
Finding and Keeping Good Subs
By Michael StoneMy biggest challenge as a residential remodeler is obtaining and keeping qualified and experienced sub-contractors willing to do smaller type projects.
You Can’t Make This Stuff Up!
By Michael StoneWe use Google Analytics on our website. It tells us how many visitors we’ve had and what brought them to our website.
Writing a Business Plan for a Construction Business
By Michael StoneA business plan is different than year-end planning. A business plan looks at the big picture. It’s a roadmap for the whole journey.
Growing a Construction Business
By Michael StoneGrowth is inevitable when you successfully market your business and have solid business practices but growing a construction business brings a few challenges along with the blessings.
How to Have a Profitable Construction Business
By Michael StoneYou can’t focus on being competitive if you want to be profitable. You have to focus on profitability.
Year-End Planning, Part 1
By Michael StoneBusiness planning isn’t exciting. But the effort you put into it has much to do with the results you’ll see next year and in years to come.
General and Specialty Contractor relationships
By Michael StoneIn the last month I’ve heard from more specialty contractors having problems being paid by generals than I’ve heard in years.
What’s the Right Contractor Salary?
By Michael StoneIf you’re a contractor, how much should you be paid to own and run your own construction company? How much should a construction company owner be paid as salary?
Liability Insurance Tangle
By Michael StoneSome time back we received a well-written letter about liability insurance from a contractor in Washington state.
Should You Join a Trade Association?
By Michael StoneDuring a recent “Sharing Ideas” online discussion, the subject of trade associations came up: Is joining a trade association worthwhile?
Planning for Next Year
By Michael StoneThe end of the year is a good time to look at how you’ve been doing business. What standards have you set, and are you keeping those standards?
Year-End Planning, Part 2
By Michael StoneThis is part two of our year-end planning paper. We’re going to pick this up by continuing an indepth look at your overhead budget for the coming year.
Running a Business or Being a Craftsman?
By Michael StoneEarlier this year I had the opportunity to interview with Brian Javeline for The Contractor Show. Our episode was just posted.
Employees: Details that Cost You Money
By Michael StoneNothing is more frustrating than to work hard only to find out your business isn’t making money. Michael discusses three things that can make a big difference on the bottom line.
Spare Topics
By Michael StoneIt’s time to catch up on some spare topics I have lying around. These aren’t earth shaking but they can and will impact your bottom line.
Business Skills and Your Construction Business
By Michael StoneIt’s easy to think we already know all we need to know. If you want to be successful, continually improve your business skills.
Everyone Gets Paid
By Michael StoneOver the years I’ve heard from many wives or significant others who were tired of living with no money and essentially no future for the business.