Masonry Magazine July 2010 Page. 35
6. Too Big, Too Fast, with No Cash (Not enough working capital!)
The No. 1 reason small companies go broke is that they outgrow their cash reserves. Before you take on more work than you can handle, assure you've got the capital resources to do the work. You would never start a donut store without at least $250,000 in the bank. Plan to have plenty of cash on hand for three to six months of overhead, personnel and equipment required to manage projects properly and get paid in a normal timeframe. Keep adequate reserves on hand, in case payments get delayed. Most builders need a minimum of 20 percent of their annual volume in working capital to stay afloat.
7. Go with the Flow (No marketing or sales plans!)
Companies without a specific written marketing and sales plan tend to bid or do whatever comes in the door. This is a reactive approach and will not take your company where you want it to go. Successful companies have an ongoing approach to sales, and methodically approach the markets and customers they want. Identify your top customer targets and make them a priority.
The choice is yours! Strive to thrive, or fail and bail! Consider these seven factors to chart your future in any changing economy or business climate. IMAS George Hedley is the best-selling author of "Get Your Business to Work," now available. As a professional speaker and business coach, he helps entrepreneurs and business owners build profitable companies. Email gh@hardhatpresentations.com to request a free copy of "Everything Contractors Know About Making A Profit!" or signup for his e-newsletter To hire George to speak, attend his Profit-Builder Circle academy or find out how he can help your company grow, call 800-851-8553, or visit www.hardhatpresentations.com. George Hedley, HARDHAT Presentations, 3189-8 Airway Ave., Costa Mesa, CA 92626 www.masonrymagazine.com Fred Ode CEO/Chaiman AFOUNDATION AMERICA'S #1 Construction Accounting Software Thousands of contractors agree. Read their stories www.foundationsoft.com 800-246-0800 READER SERVICE #127 AFOUNDATION MASONRY The Voice of the Masonry Industry CRANES TRAINING Masonry is the only magazine exclusively devoted to masonry in construction. Masonry Magazine provides the information you need to work more efficiently, safely and profitably. Sign up today for your own subscription: www.masonrymagazine.com Contact Maria Bennett for money saving company group subscriptions. bennett@lionhrtpub.com 883 303 5639 ext. 219 July 2010 MASONRY 33