If I Managed Your Business

It is in our human nature to want to help people that sometimes struggle with things.  As a finance expert I often see contractors struggling with their business and I’d like to say ‘If I Managed Your Business, Here’s what I would do.”

…I would ensure the following key strategies were implemented and used in order to maintain and improve your profits: aggressive revenue drive, timely billings, assertive account collections, negotiating skills, timely cost reports, cash flow forecasts, internal controls plus many others.

…I would review forecast revenue to ensure that it was adequate to achieve profit expectations.

…I would ensure that all billings were prepared and delivered in a timely manner – after I had reviewed each one to determine if all costs and all extras were included.

…I would ensure billings are monitored for timely payments and would aggressively pursue all accounts past their due dates.

…I would ensure that we negotiated all major material and equipment purchases for best price and delivery dates. Negotiating skills take time and practice but I am certain that job profits will improve by the techniques discussed in this course.

…I would insist on timely, effective cost reports that would allow the project manager to prepare cost trends that would guide him to corrective action prior to the job completion.

…I would forecast weekly cash flows for the next eight weeks and the following three months, to serve as guides to cash shortfall and surpluses and I would appoint a cash manager.

…I would implement internal controls to safeguard your assets with the most notable being: signing all cheques after viewing supporting documentation, reviewing all billings, open and view all bank statements and review gross profits and cash flows on all new estimates.

…I would conduct post-job close out meetings to discover what went wrong, what caused the problems and how the company will avoid those issues during the next job. If a job went well, we would use this time to identify what went right and ways to recreate that experience on the next project.

…I would accept that my primary responsibility as your manager is to earn a profit. By following these strategies, I expect to meet that responsibility and ensure that your profits will increase.

(Published in Construction Comment – publication of Ottawa Construction Association)

To improve your skills as both a contractor and a manager, learn more about the Profitable Contracting Course CLICK HERE

 

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  • Upcoming Courses

    All courses are 1/2 day on-line training – Zoom platform

    Local Construction Associations:

    EAST:
    All courses are scheduled for 4 hours with start times 12:30 PM Eastern time.

    Profitable Contracting
    Wed & Thurs October 5 and 6.

    Finance and Accounting for Non-Financial Mgrs.
    Tues, Wed & Thurs Oct. 25, 26 & 27th

    Strategic Planning for Growth
    Tues & Wed. November 22 & 23rd +++++++++++++++++++++++++++++++++

    EAST & WEST COLLABORATION
    Project Manager’s Guide to Accounting Practices, Cost Controls & Financial Reports

    Scheduled for 4 hours starting 12:30 PM EASTERN time.
    Tues, Wed & Thurs, Nov. 15, 16 & 17th

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    WEST:
    All courses are scheduled for 4 hours with start times 8:30 AM Pacific time.

    Profitable Contracting
    Wed & Thurs September 21 & 22nd

    Finance and Accounting for Non-Financial Managers
    Wed, Thurs, & Fri Oct. 12, 13 & 14th

    Strategic Planning for Growth
    Thurs & Fri. Nov. 24 & 25th

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    Mechanical Contractors Association of Canada

    EAST:
    All courses are scheduled for 4 hours with start times 12:30 PM Eastern time.

    Profitable Contracting
    Tues & Wed September 27 & 28th, 2022

    Finance and Accounting for Non-Financial Managers:
    Tues, Wed & Thurs Oct. 18, 19 & 20th

    Strategic Planning for Growth
    Tues & Wed. December 6 & 7th, 2022

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    WEST:
    All courses are scheduled for 4 hours or less with start times 8:30 AM Pacific time.

    Profitable Contracting
    Thus & Fri Sept. 29 & 30th

    Finance and Accounting for Non-Financial Mgrs.
    Wed, Thurs, & Fri Nov. 15, 16 & 17th

    Strategic Planning for Growth
    Thurs & Fri. Dec. 8th & 9th, 2022

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    NLCA will be hosting the following courses exclusively for NLCA members:
    1/2 day on-line training – Zoom platform

    Profitable Contracting
    October 3 & 4
    9:00 am to 12:30 pm NL time

    Finance and Accounting for Non-Financial Managers 
    November 28, 29 & 30
    9:00 am to 1:00 pm NL time

    Strategic Planning for Growth
    December 12 & 13
    9:00 am to 12:30 pm NL time

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