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Industry Confidence Index Rises Dramatically

April 8th, 2013 by

The construction market has taken its lumps over the past four years, tempting a normally optimistic industry to get gloomy. However, for the first time since early 2008, the industry is seeing signs that suggest the worst is over and the market is gradually recovering.confidence

The most recent ENR Construction Industry Confidence Index survey shows the industry’s growing hope that recovery is at hand. The first-quarter 2013 CICI surged to a record 64 points on a scale of 100, which represents a growing market. The vast majority of the 376 executives of large construction and design firms responding to the survey believe the market has stabilized. Only 13% of respondents believe the market currently continues to decline, while 32% believe it is growing. This contrasts with the 2012 CICI for the fourth quarter, when 30% believed the market continued to decline, while only 18% believed it was growing. The CICI measures executive sentiment about the current market and reflects their views on where it will be in the next three to six months and over a 12- to 18-month period. The index is based on responses to surveys sent out to more than 3,000 U.S. firms on ENR’s lists of the leading contractors, subcontractors and design firms.

The latest results are based on a survey conducted from February 26 to March 11. Survey participants are not unanimous in believing the recession is over, nor are industry execs ready to declare that happy days are here again. But there is a general feeling that the worst is behind us. “After four miserable years, construction is finally starting to rebound,” says an executive at a midsize subcontractor in the Southeast. However, recovery will come in fits and starts, he cautions. Several participants worry that federal budget fights may stall a market that seems to be taking off. “The fiscal cliff has everyone in turmoil, so money is on hold for many capital projects,” says a contractor executive in the Northeast.

One construction manager worries that three of its federal projects may be halted because of sequestration. CFMA Survey Also Upbeat The CICI findings parallel the soon-to-be-released results of the latest Confindex survey from the Construction Financial Management Association, Princeton, N.J. CFMA polls 200 CFOs from general contractors, subcontractors and civil contractors. While a Confindex rating of 100 indicates a stable market, higher ratings show growth is expected. “Our Confindex rose to 129 from 114 [on a scale of 200] for the first quarter,” says Stuart Binstock, CEO of CFMA. He notes that all four components making up the Confindex grew sharply in the first quarter. The current business-conditions component of the Confindex surged to 147 from 123, while the outlook for the year-ahead component rose to 139 from 118, Binstock notes.

“The politics in Washington does not seem to have thwarted our members’ optimistic outlook,” he says. The positive jump in the CFMA and CICI indexes caught some by surprise. “The economy grew only 0.1% in the fourth quarter, and taxes are up—usually a negative market indicator,” says Anirban Basu, CEO of economic consultant Sage Policy Group Inc., Baltimore, and CFMA economic adviser. However, he says there is a growing sense in the industry that the demand for new work is there and that the market will show real gains this year. One positive industry trend is the availability of project financing, Basu observes. “Banks increasingly are willing, even anxious, to lend on projects,” he says. However, budget concerns on the public side, along with worries about federal budget sequestration, are putting a damper on the industry’s overall confidence in project financing, he says. “But the availability of new credit on the private side counterbalances public budget constraints,” he notes.

The easing in project financing can be seen in the CICI survey. ENR’s survey found that while 56.4% of survey respondents said project financing availability has been unchanged from six months ago, 31.9% said credit for project financing was actually easing from the level it was in mid-2012. This compares to last quarter, when only 19.9% found project financing to be getting easier, while 15.9% found financing was getting tougher. Among the individual sectors, the CICI survey shows that respondents are very confident. Applying the CICI rating formula, the ratings for all markets grew except for the water, sewer and waste market, which remained flat. Further, all markets but one are now above 50, which is the CICI’s benchmark rating for expectations of growth.

The entertainment, cultural and theme-park sector stands at 45. Spurred by shale-gas development projects and pipeline work, the petroleum market’s 78 CICI rating was the highest-rated sector, according to the survey. Another market that remains strong is the multi-unit residential sector, with a CICI rating of 74. Other strong markets included power (with a CICI rating of 69), hospitals and health care (68), and industrial process-manufacturing (61). Overall, construction executives are optimistic about market prospects for 2013. However, many CICI survey respondents worry about the economy and how national politics may affect it. Basu notes that there will be another round of debt-ceiling debates that will culminate on May 19. He says the debt-ceiling showdown of 2011 sent industry confidence into a tailspin. “Things are in place for a meaningful recovery this year, but there still is time for Washington to mess things up.”

 

Prospects by individual sectors by firms working in those markets

Vertical Construction: Part 3 of 12

April 30th, 2012 by

Have you noticed the construction business is a lot like the circus? You spend your days juggling, taming lions, fire eating, sword swallowing, getting shot out of a cannon, walking tight ropes, dealing with clowns, cleaning up after the elephants and working with monkeys.

With today’s pressure to do more with less, how can you get it all done? Where do you start?  Using technology and computers, creating a website, training, finding good help, getting paid, dealing with customers, getting bids out, keeping up-to-date with code, chasing lien releases, dealing with government regulations, handling cash-flow and payroll, ordering materials, meeting with subcontractors, negotiating contracts, checking field measurements, coordinating crews and keeping jobs on schedule. How do you get it all done and still have time to focus on your priorities?

The year was 1985 and I was trying to get my business to work. I had six people on my management team, ten project managers, twenty-five field superintendents, and seventy-five men on our tilt-up concrete crews. My goal was to have a profitable company run by my employees. But I was still trying to do too much myself and make every important decision. I continued to work with my estimators on every bid, presented every proposal, attended every job meeting, supervised every concrete pour and was too involved in every aspect of our business. I even got involved in the little decisions like purchasing office equipment, hiring, firing, tools, change orders and buying coffee for the office staff. Sound familiar?

Is It Easier to Do It Yourself?

No matter how hard I tried to let go and delegate, I just couldn’t. It was easier to do it all myself than to trust my people. My actions drove me nuts and my employees crazy. It became difficult to get good people to stay at our company as I was micro-managing and trying to control their every move.

One evening I took my family for a “happy” meal at McDonalds. I noticed the boss wasn’t there, the employees were teenagers, customers were happy and the food was consistent and relatively edible. I thought: “How do they do it without the owner supervising and making every decision?” I asked a server to show me their secret. He took me behind the counter where they have pictures clearly displaying how to build hamburgers and other menu items.

Good People or Good Systems?

Wow! A huge company runs smoothly using simple pictures of the finished product. This guarantees consistent quality. Plus the owner doesn’t have to be on-site all the time supervising the construction of every customer’s order. If McDonalds could do this in their company, why couldn’t I do it in mine and build an organized and systemized operation. Systems would reduce my dependence on finding great people.

Systems Are the Key!

I started to understand and realize that systems are the key to building an excellent company. A disorganized company controlled by the owner will never become excellent. Systems allow you to produce the same results on every project every time. Systems will get everyone doing business the same way. You won’t have one superintendent handling change orders one way and another doing them differently. Systems will insure little things are taken care of without you reminding people to do them the way you want them done. Systems will allow you to focus on the important tasks that will make you the most money. Systems allow you to deliver consistent results to your bottom-line and your customer’s project requirements every time without you being there and making every decision for your people.

As a construction business owner, you want to count on the same things every time on every job. You don’t want to rely on great people to remember what you tell them to do. Whether it’s pulling rebar into the center of a slab during a concrete pour, starting a project correctly, or handling change orders or timecards properly, you want everyone on your crews and in the office doing things the same way in your company. Systems are the only solution to get your company where you want it to be.

Keep Systems Simple!

I noticed excellent companies have simple systems. For example, at hotels, all rooms always look the same when ready to occupy. How do they do this? Simple. The supervisors explain during their training sessions what is expected to the housekeepers by displaying a clear picture of a finished and ready room. They don’t care how the final result is accomplished, just that the room is perfect when completed. This simple approach can be applied to every part of your business.

As I comprehended this concept, my personal goal became to replace myself with systems. I finally realized that great people, excellent estimators, fantastic superintendents or great project managers were not going to make my company perform the way I wanted it to. Why? When your company is not organized or systemized, your company is constantly out-of-control and relies on you to put out all the fires and make all the decisions. Your great people can’t deliver without you telling them what and how to accomplish things. In this condition, you spend full-time running around handling problems and directing traffic. Solid and simple systems are the only answer to building an excellent company that’s not dependent on you making everything happen smoothly.

Why Systems?

How much money are you losing by relying on your people to do their best and not following company installation and operational standards? Create systems to:

 

  1.     Produce the same results every time
  2.     Meet customer expectations
  3.     Consistent performance
  4.     Be organized and in control
  5.     Eliminate field problems
  6.     Increase quality workmanship
  7.     Improve safety
  8.     Finish projects on-time
  9.     Increase profitability
  10.     Maximize return on time

 

Perfect Systems Produce Perfect Results

With systems in place, monitored and trained, you free up time to concentrate on real business growth opportunities like converting repeat customers into loyal customers, seeking business joint ventures, looking for ways to maximize your bottom-line profits, motivating and inspiring your key people and finding time to enjoy the benefits of business ownership.

For example, as a tilt-up concrete contractor we pour hollow metal door frames into the exterior concrete wall panels. At one point, several months after the doors were installed, the frames were sometimes discovered kinked and the doors didn’t always swing properly. We discovered some foremen were not bracing the frames consistently prior to the concrete pour. The weight of the wet concrete was causing the frames to bend without proper bracing. We were relying on our foremen to know how to install frames. We didn’t have a company system in place to insure door problems wouldn’t occur. A simple fix was to create a pre-pour door frame installation and bracing system for everyone to follow. With continual problems like these, we were throwing money out the window fixing problems and running around every jobsite making sure our foremen were installing the frames properly.

Where Do You Start?

The problem with getting organized and systemized is where to start. It seems like a monumental task to organize and systemize your company and crews. But to make it happen only takes a commitment of time. I recommend you make a commitment to dedicate four hours a week to systemize your company. Work toward creating a three-ring binder of company systems for every important task performed in your business. In most cases, most of your employees need twenty systems or ways you want the company to always do things consistently. This will eliminate 90 percent of all problems and crises that occur every day. This will free you to spend time on the highest return items.

Sit down and create categories you want to systemize. Start with the most important areas to your operation. These might include:

 

  •     Field operations
  •     Project management
  •     Accounting
  •     Administration
  •     Estimating
  •     Marketing

Next, take each area and make a list of the top ten or twenty things you want accomplished the same way every time. For example, consider simple things like filling out timecards, installing formwork for concrete foundations, job start-up checklists, pre-project bidding requirements, getting paid promptly, jobsite management, truck and equipment maintenance schedules, tool inventory, crew training or shop drawing submittals and approvals. Your goal is to eventually have an outline for each system on one piece of paper, written or drawn, showing a clear picture of the end result desired to meet your company, customer or project specifications and standards. The best systems are team designed by the people who actually do the work and do it best.

Create a “DO” Manual

To organize and systemize your company requires time, which will produce consistent results and get everyone doing business the same way. Create a “DO” manual of pictures, checklists and guidelines as your company minimum standards and procedures. Build a three-ring binder of standard systems for every aspect of your company and field operations. Focus on the important things first that will make a difference in your bottom-line. Make a goal to create one system a week and you will be very organized in a year.

7 Steps to Create Systems

#1) Identify Area to Systemize-Start a “Fix-It List” identifying everything you need to fix or systemize in your company. Keep your list handy and as problems occur or things go wrong, write them down. At your weekly or monthly manager and foreman meetings, pick the top priority items you need to fix and make it a goal to create a system for these items. Choose items for each part of your operations so that every part of your business will improve simultaneously. I recommend at least fixing one or two things every week. This will take no more than one or two hours per system to draft a guideline or checklist to implement.

#2) Assign System Team-After choosing a system to create, pick three or four people to work on the company standard. Let them choose a convenient time and location to work together for a few hours. Involve those who actually work within the area being systemized to give input. For example, your team might include a project manager, foreman and journeyman when systemizing a field standard. Let them get together during working hours and draft the company standard of how you do the work task.

#3) Draft Standards and Guidelines-Good systems are simple and use checklists, details, pictures and diagrams of how to accomplish the desired end result for each system. Draft systems on standard size paper and three-hole punch them to insert into your company “DO” manual and binder.

#4) Formalize-Assign a staff person to be the keeper of your company systems. Have them meet with each systems team to officially convert the team’s draft into a formalized company system or standard. After completing the system, distribute them to everyone in your company.

#5) Try It-Let the team who creates a system try it and work out all the bugs for a few weeks before implementing it company wide. Encourage them to recommend changes and improvements to the formalized system so the final system will insure perfect results every time.

#6) Training and Implementation-At regular monthly meetings, have the team who created the system present it to the entire company. Distribute the new systems to the attendees and have the system team show everyone how to do it the company way. Sometimes the best place to train a new installation method is out on the jobsite. The key is to train everyone and insist everyone do the system per the company standard-no exceptions, including yourself. If someone protests, let them put the item back on the “Fix-It List” for further revision. If you get dissenters, let them speak their ideas, but insist everyone follow the system. If they still resist, let the dissenters join the system team to modify and revise it to accommodate everyone’s ideas. Your company “DO” manual will become your training manual. Cover every system at least twice a year as part of your ongoing company training program to insure everyone understands and uses the standards.

#7) Follow-Up and Evaluate-After six months, revisit the new systems to insure they are still being used and working well. Review them again and ask for feedback or improvement ideas.

The beauty of systems is you don’t worry about every detail on every project. Your people will do things the same way-your company way. This allows you to spend your time on important matters as little problems go away. To get started, create a “Fix-It List” today and you’ll be organized sooner than you think. Consider starting with some of these company field systems to improve your quality, schedule and bottom line:

 

  •     Job start-up checklist
  •     Project quality checklist
  •     Project safety checklist
  •     Four week look ahead schedule
  •     Project goals and objectives
  •     Procurement checklist
  •     Subcontract scope checklists
  •     Subcontract tracking log
  •     Shop drawing and submittal system
  •     Change order checklist
  •     Field start-up checklist
  •     Pre-job field start-up meeting agenda
  •     Time card procedures
  •     Field paperwork system
  •     Weekly field meeting agenda
  •     Project review system
  •     Standardized project budget
  •     Quote comparison spreadsheet
  •     Request for information log
  •     Change order logs
  •     Fast pay checklist
  •     Weekly team meeting agenda
  •     Monthly management meeting agenda
  •     Equipment maintenance checklist
  •     Truck equipment inventory
  •     Standardized punch-list
  •     Job close-out checklist

An excellent company does things consistently and is organized. An excellent company doesn’t rely on the owner to make all the decisions and tell everyone what to do. Systems are the only way to insure excellence as your company grows. Without company systems, your company will only grow as big as you can handle the pressure, people, customers and problems. This will limit your ability to make a profit and get your business to be what you want it to be. Make a commitment to replace yourself with systems and get on the road to entrepreneurial excellence.

Vertical Construction: Part 2 of 12

April 25th, 2012 by

If I followed you around for a day, what would I see? What would be your focus? Would you be spending your time on details, scheduling crews, making sure materials are on the jobsite, bidding work, meeting with customers, showing your foreman what to do or completing the job paperwork?  Do these activities make you profitable?

There are two main reasons to own a construction company. One reason is to have an enterprise where you get paid a reasonable sum for the work you do, make a decent living and have the freedom of not reporting to an employer. The other reason to own a business is to make a profit for the time, energy and risk you take.

After I spoke at a national convention, a construction business owner approached me for advice. He said he was over-worked, stressed out, hadn’t paid himself in months, was having trouble collecting money customers owed him, trying to find time to do the required paperwork and hadn’t taken a vacation in years. I asked him to tell me his average profit margin, overhead costs, equity, working capital and available line of credit at the bank. He looked at me like I was from another planet. It was obvious he had started his company with little or no money and expected to build a business without the basics in place for growth. It seemed there wasn’t any hope for him to make a profit as he wasn’t focused on the most important part of a business-the numbers.

In my last article, I explained step one of the business success blueprint: Build an “On-Purpose…On-Target” Business! Start any journey by figuring out what you want. It was obvious this contractor hadn’t taken step one and listed out what he wanted his business to do for him and what it would take to make it happen. Step two in building a successful business is to focus on your bottom-line numbers and always make sure you make a profit.

Are You an Entrepreneur?

Many small businesses are owned by people who just want to work for themselves and like being in control of every decision and detail of their business. They don’t delegate much and really don’t like employees or customers. They like to stay small and don’t want to grow. These businesses are sole practitioners and may only have a handful of employees and customers. There is nothing wrong with these businesses. But entrepreneurs, on the other hand, are business owners who want to grow their companies and create an organized and systemized business that works for them. The business is employee-run, has loyal customers, makes a robust profit and creates wealth.

What do you think successful and profitable construction company owners and entrepreneurs spend a majority of their time on? They are focused on making and maximizing PROFIT. They learned long ago that details, commitments, hard work, and micro-managing doesn’t result in profit. Profit is the result of staying focused on making money in everything you and your employees do. Know your numbers, make them a priority and do everything you can to hit your targets. Entrepreneurs know that cash, capital and equity are the lifeblood of their future. This is what I call “profit-driven.” Are you profit-driven?

Profit-Driven Test

Take this true or false test to determine if you are profit-driven:

 

  1.     I know the profit targets on every job.
  2.     I know our fixed cost of doing business.
  3.     I know our exact annual overhead costs.
  4.     I know our annual breakeven revenue.
  5.     I know our net profit year-to-date.
  6.     I know our annual gross profit goal.
  1.     I know our annual net profit goal.
  2.     I know how much cash we have in the bank.
  3.     I know what our company working capital is.
  4.     I know what our company equity is.
  5.     I know our annual equity growth goal.
  6.     I know what our current receivables are.
  7.     I know what our backlog is.
  8.     I know what our total debt is.
  9.     I know our projected monthly cash-flow.
  10.     I know what our equipment costs are.
  11.     I know our average gross profit on every job.
  12.     I know what a good profit margin should be.
  13.     I know the difference between gross profit and markup.
  14.     I know how to maximize our bottom-line profit.

How did you do? Do you have any false answers? Profit-driven business owners, entrepreneurs and managers usually have at least fifteen true answers out of these twenty questions. People who have less than ten true answers are not focused on making a profit. Their priorities are on surviving, keeping busy, getting the work done and then getting more work with which to pay their bills.

You can’t get your business to grow without making a profit. Profit allows you to build a company. The more profit, the faster you can grow. Profit allows you to invest in people, systems, equipment, training, customer service and technology. Without a good profit margin, your business struggles and can’t get moving toward achieving your business goals.

Are You Volume-Driven?

Many construction businesses focus on volume and staying busy. They go for more work instead of profitable work. They take what comes in the door and compete against too many cheap competitors who don’t know how to make a profit. They don’t offer anything different than their competitors, so they have to sell low price. This causes them to take on more work at too low a margin to cover their costs. More volume is addictive and keeps you on the treadmill going nowhere. And this eventually results in not enough profit to sustain business growth. I am not impressed with company owners who brag about how busy or how big they are. I want to know how much profit they are making! Your goal is not to be busy. Your goal is to make a HUGE profit!

The CEO’s of major Fortune 500 companies are focused. They get judged on only two indicators of success. They live and die on their stock price or company value and quarterly earnings or net profit. Do you think like a CEO? Are you focused on increasing the value of your company and always making a profit? Do you make your people accountable to hit their numbers? Do you know your numbers and what it takes to make a profit? Do you look for customers, markets and projects where you can make HUGE profits?

What is Your Top Priority?

Profit-driven business owners and managers know what they want. They want to make a big profit, and to reach that end, making money must be your top priority. You need precise profit targets and clear goals for your people, projects and customers. Shoot for a specific return on equity and a return on your energy invested. Identify the type of projects at which you excel, the market in which you flourish, the maximum and minimum job sizes you best manage and your own capacity. Decide when to say “Yes!” and more importantly, when to say “No!”  That is a key to being profit-driven.

For my first ten years in business, I was focused on getting work and getting it done. I grew my business fast and made an average profit. My focus was on sales and customer relationships-not a bad thing on which to focus. But my profit margin was only 1 or 2 percent pre-tax net profit-the national average for construction companies. After fifteen years, I finally took a hard look at my bottom-line results. I realized this profit margin was too low for the risk I was taking. At that low profit rate, I would never be able to get my business where I wanted it to be. I was stuck in a rut. I decided I had to work differently to make a HUGE PROFIT and get what I wanted: a business that works without me, loyal customers, equity, wealth, contribution to others and freedom.

By changing our focus to achieving what I wanted and making HUGE profits, our company has made drastic changes in the way we do business, and as a result, lots of money. We now make 500 percent more net profit than we did doing business the same way we had for years.

A graduate of my ‘Profit-Builder Circle’ roundtable program just wrote me this great testimonial:

“I wanted to drop a line to let you know-almost three years after having participated in your program-profit, profit, profit. I practice and preach the principal constantly. We’ve become much more efficient at identifying loser jobs and clients and removing them from our midst. In the last three years we have increased our net profit to $900,000 on $9,500,000 in revenue after capitalizing $350,000 worth of equipment. We paid off $250,000 worth of debt. I paid myself a solid salary, and I’ve managed to acquire another property, which my company pays for in rent. I’ve taken at least six weeks a year off. In addition, my kids actually know who I am, and my wife no longer works in the office and is able to be a full-time wife and mother.”

What is Profit?

Profit-driven owners and managers know their numbers. They know what it takes everyday, every month and on every job to make a profit.

 

  •     Profit is return for the risk you take in business.
  •     Profit feeds and supports business growth.
  •     Profit is a reward for running your business professionally.
  •     Profit can be split with key employees as an incentive.
  •     Profit can be used to help you through tough times.
  •     Profit allows investment in an exciting new venture.
  •     Profit is the outside indicator of how well your business runs
  •     Profit shows you how much money your money makes.
  •     Without profit, your business can’t thrive and prosper.

Profit is financial gain or return from the use of capital in a business. Profit is the sum remaining after all costs-direct and indirect-are deducted from the income of a business. This assumes you have income or revenue and have collected it. Most business owners start their business with capital or a cash investment and still have some left-this is the equity in your business. Equity is also the value your company is worth if it was for sale. Direct costs are your direct job costs or the costs of doing the work you have been contracted to complete. Indirect costs are your fixed costs of doing business, which include your overhead, management, office and administration. Overhead costs continue on whether you have any jobs under construction or not.

Know Your Numbers!

Starting with your overhead, you must know what your break-even point is. Most construction companies don’t reach this point until the final quarter of their fiscal year. What profit do you want to make above the break-even point? Don’t calculate in percentages. Instead, focus your targets with exact numbers that managers will understand and can hit. For example, at Hedley Construction our gross profit target is $2,000,006 in 2006! With a break-even point (overhead) of $1,000,000, our net profit target is $1,000,006-clear and precise.

Profit-driven owners and managers are competitive. They need targets and score boards. You can’t win a basketball game without shooting at the basket and keeping score. You can’t win a golf match without holes and scorecards. You can’t reach your business goals by trying to work as hard or as fast as possible. What profit targets do your people aim at?

Make sure each member of your team knows exactly what their target is. For the architect and general contractor, use precise schedules with milestones and deadlines. For the project manager, use exact goals for job cost and profit. For the project administrator, use monthly deadlines for invoices and shop drawing approvals. For the foreman or supervisor, use quality and safety milestones that can be tracked and scored. For subcontractors, use mandatory requirements such as job meetings, inspections, notices and documentation. This is profit-driven in action.

When bidding jobs, can you cut your costs? No! Can you cut your overhead? No! What is the only variable to profitability? The final sales price. Profit-driven owners and managers focus on profitable projects, customers and services. These give you a high return on your assets, time and energy. Profitability starts with sales. Controlling costs, expenses, quality and purchases is easy. Selling is hard. Rather than devoting your time to daily operations, focus at least 25 percent of your time on getting profitable work. Look for profitable project targets, repeat loyal customers and referral opportunities.

Get Focused on Profit Building!

What do you want, more volume or more profit? Real men and women go for profit and don’t care how busy they are. When you’re too busy, everyone likes you (employees, suppliers, subcontractors, creditors, etc.) except your family and friends. After I decided our company was not in the volume construction business, we skyrocketed to HUGE profits. We are now exclusively in the profit building business. We seek projects, customers, managers and employees who are focused on making us lots of profit. We seek opportunities to increase our equity and build wealth instead of staying busy and competing on price. Is your business focused on your future? If you were an outside investor, would you invest money in your operation? What bottom-line return would you want? I bet it is more than 1 or 2 percent pre-tax net profit.

21 Profit-Building Steps to Success

 

  1.     Keep your personal overhead low.
  2.     Pay yourself first a fair salary every month.
  3.     Save 10 to 20 percent of all personal earnings.
  4.     Get out of personal debt now.
  5.     Don’t spend money before you’ve made it.
  6.     Invest six months working capital as reserves.
  7.     Get a bank line of credit for emergencies.
  8.     Balance your company budget.
  9.     Only hire the best people and pay them top dollar.
  10.     Always make a profit every month.
  11.     Track sales and backlog every month.
  12.     Track monthly cash flow and profit and loss.
  13.     Track your accounts receivables monthly.
  14.     Delay all purchases except technology for one year.
  15.     Buy your first income property before your second truck.
  16.     Rent equipment as needed until 75 percent is job-charged.
  17.     Get out of business debt.
  18.     Reinvest 50 percent of all profits back into the company.
  19.     Look for outside income producing investments.
  20.     Give back to your community, charity or church.
  21.     Share your wealth with those who helped you.

 

Fortune or Fame?

The magic of making lots of profit starts with making lots of money! To build a profitable business takes focus and tough decisions. I am not in business to be liked or famous. I am in business to make a HUGE profit and grow my wealth. When you have a fortune, you can share it and give back to others. You must be the leader and set the example. Focus on making a profit, hold people accountable, delay marginal buying decisions, say “no” to tempting jobs that look risky, don’t let people waste money, let go of your poor performing employees quickly, know and watch your numbers, know your break-even point, watch your cash-flow, seek big profit customers and projects, be firm and tough on suppliers and subcontractors and get those change orders signed. You know what you’ve got to do to make a profit. Stop the insanity and work differently! No profit equals no future! When profit is your No. 1 business priority, you will be taking the second biggest step toward building an “On-Purpose…On-Target” business and getting your company to work for you.

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