Contractor Success Map With Randal Dehart | Contractor Bookkeeping And Accounting Services

This Podcast Is Episode Number 492, And It's About The Top Construction Company Marketing Blueprint Construction contractors like you are primarily in the "Hurry Up" and "Wait" zone. Hurry up and answer the call from the customer.  Wait to make the appointment.  Hurry up and get to the job.  Wait for the customer to come home, to be available.  Hurry up and create the proposal.  Wait for a decision.  When the client says "Yes," it is - wait for the Job Deposit. Wait to Start The Job This Hurry Up and Wait for activity makes it hard for the contractor to schedule other jobs. Many contractors only hold a place open for the client once a job deposit has been received.  Unless your construction company has lots of work stacked up, there will be times when there is nothing to do, and that is the best time to think about Strategic Marketing and following the adage: "Dig your well before you are thirsty" You won't build a loyal client base if you can't earn your visitors' trust, which is why companies value so

This Podcast Is Episode Number 491, And It's About What Sets Your Construction Company Apart Let me start by saying it's good if you have competition. Indeed, competition pushes you to be innovative. It also means there's an established community for your services. If no one else is offering the service, there's a chance there's no market for it.   But, have you always wondered how a small construction company like yours could stand out from the crowd and its competitors? Awareness of what others in your industry have developed and provided leads to a newfound motivation and belief in making an impactful difference, whether within your company or your community.     The key to benefitting from the competition is knowing how to take on competitors. You measure your share in the particular segment you operate in and obsess about your immediate competition, just as contractors who did not market effectively did years ago.   But first, you need to step back and ask yourself these three key questions and make sur

This Podcast Is Episode Number 4890, And It's About How To Raise Your Prices: Value Over Price As prices continue to rise, you've likely noticed that your cost of doing business has increased as well. After all, the main point of any business is to make money, and you can't do that if you're no longer breaking even.    It's inevitable in every industry – you must raise your prices to continue making a profit. Many factors decide how much to charge, all of which are dynamic. The rising cost of goods, inflation, and a changing market are just a few reasons why any small business has to reevaluate its rates regularly to stay competitive (and to stay in business).   If you're overworked and overbooked, you're undercharging. People know your worth and are fighting for your time. It's time to increase your prices!   Although there's a lot to consider when raising your rates, make a point to reevaluate every six months. Here are some tips on how to increase your prices and how to tell your customers.   Accept that

This Podcast Is Episode Number 489, And It's About Construction Company Employee Compensation And A Note On Taxes There are a few different methods that employers use to pay their employees, and while they may have similarities, they each also have implications for your construction business and employees. On top of that, there may be a blended model at play, in which you offer two types of compensation at once, such as a wage and bonuses.    When paying employees, laws and the IRS have made the payroll function a time-consuming nightmare for the small business owner.   Small business owners spend an average of eight hours monthly performing payroll functions. That's 12 full business days a year that could be spent generating sales, prospecting for new business opportunities, improving products or services, or servicing customers.   How you pay your construction employees will impact your finances and your reporting requirements. Read on to learn the differences between the main ways of earning money in the

This Podcast Is Episode Number 488, And It's About Ways To Get Rid Of Construction Accounting And Bookkeeping Confusions Doing something different is hard. Do you feel like everyone else is the most brilliant person in the room, and you just don't get it? Getting into a rut and repeatedly doing the same things is easy.   If those things work, then yes, continue to do them repeatedly. The problem is when something is not working, and you continue down the same path expecting a different result. The opposite of too much change can create another form of chaos. How do you know what is broken if you change a zillion things all at once?   Looking for ways to make your job easier is the goal of all construction contractors. The last thing you want to hear from your staff or a trade contractor is, "Do you want me to do that over?" Your answer is "No!" (thundered, with many extra words). What you expected was that your staff did it correctly the first time.   In accounting, the first piece of the confusion comes fro

This Podcast Is Episode Number 487, And It's About Five Effective Ways To Retain Employees And Keep Your Company Healthy Traditionally, employers have relied on giving employees raises to retain their staff and reward them for being hard-working and loyal. Raises can get expensive, and there is often an upper limit for what you can offer regarding increasing salaries and wages.   Keeping your employees happy makes business sense. You want to keep your good employees, and it costs money to find, hire and train new staff. Beyond that, satisfied employees who feel valued are more motivated and productive.   Here are some ways to keep your employees happy that don't rely on higher salaries.   1. Pay for professional development Good employees want to improve their skills and grow professionally. Often, other priorities get in the way of upgrading skills. Paying for professional development, for example, by having a fund people can access or by bringing in experts to run workshops, shows your staff you care enoug

This Podcast Is Episode Number 486, And It's About Are You Charging Enough? Why You Should Raise Your Prices There comes a time for every small business to raise its prices. While it may seem scary, remember that it's your job to keep costs fair for you and your customers. That means you have to charge prices that work for you and allow you to remain in business.  Am I Not Charging Enough? Knowledge leads to profits and cash flow. What makes knowledge powerful? Use of knowledge. In this cutthroat construction industry, you may not be able to outgrow your competition forever, but you can always outlearn them. Knowing The 80/20 Rule For Construction Contractors will surely help: 20% of your customers typically generate 80% of your net profit  20% of the goods or services you sell contribute 80% of your revenue 20% or 2 out of 10 of your staff create 80% of the value for your customers The frightening consequence of the 80/20 rule is that 8 out of 10 hours we spend at work drive almost no value to the bottom l

This Podcast Is Episode Number 485, And It's About Six Tips To Respond Effectively To Construction Client Complaints Complaints are an unfortunate part of running a business, but they happen. No matter how hard you work to please your clients, eventually, someone will have something negative to say. However, with the right approach, you can turn complaints into a valuable tool to strengthen your business.   When reviews are great, that's a fantastic thing. But unfortunately, when you get negative ones, you have to adjust. You can't please all customers all the time.   Here are six tips for effectively responding to complaints: 1. Remember that this is not an argument The reason that a client complains is a disappointment. It's a symptom of a need that wasn't met. They are not looking to fight with you. Taking the time to complain signals that they wish to continue the relationship. Don't muck it up by getting into a defensive, back-and-forth argument. Nobody wins in that scenario. Your client is allowing you

This Podcast Is Episode Number 484, And It's About Power Up Your Construction Company Payroll Processes Payroll is one of those things that starts quite simple. You build your construction business, hire a few employees, and things tick along pretty well. It’s straightforward enough to keep everything in line at first, but what happens to most companies is that they grow!   However, having an employee is different than when it’s just you meeting the client, doing the work, and collecting the money. The dynamics change when you hire that outside person. You need to be even more cautious when considering hiring a friend or family member instead of a stranger because success has a thousand fathers while failure is an orphan! Success or failure could mean choosing between peace and harmony in your personal relationships or giving away a portion of your hard-earned fruit.   Paying must run smoothly as an essential aspect of your construction business. This is a great thing, but it also means that payroll becomes

This Podcast Is Episode Number 483, And It's About The Value Of Client Happiness And Ways To Keep Your Construction Clients Happy   Construction business owners know that to find a loyal client base, they must stand out from their competitors. One of the best and easiest ways to do that is to have outstanding customer service. How you treat your customers reflects your entire business. People think positively about companies that treat their customers and clients well.    Unfortunately, many small construction business owners focus much on their products and services, with customer service remaining an afterthought.    Take time to learn more about your customers.   Do they mention family members? Ask about their loved ones. Do they have particular concerns? For instance - too many cable cords around the house, and they have small children. Keep track of their issues and be attentive to their needs. Recommend solutions that address their specific problems. Go the extra mile to show your customers they're imp

This Podcast Is Episode Number 482, And It's About How To Prevent Employee Theft In Your Construction Company Recent employee theft statistics are increasing, and small business owners are more vulnerable to the problem. The most common embezzlement methods include billing fraud, cash on hand, and check tampering. You may not know how employees can steal from you as a construction business owner. Some standard methods include: redirecting company checks to personal accounts and altering entries to cover up the theft undercounting change to customers and keeping the balance seeking reimbursement for non-business related expenses or  pocketing inventory or supplies. Just as you can't be 100% secure all the time, there is no way to eliminate 100% of the embezzlement in your contracting company. However, you can limit your losses and avoid most of them with suitable preventative measures. As a small construction business owner, you may not have the significant security budget of a large company, but you can com

This Podcast Is Episode Number 481, And It's About Common Construction Contractor Bookkeeping Issues With Accounts Payable Accounts Payable keeps track of the bills owed to a supplier or subcontractor.   A proper Construction Contractor Bookkeeping System uses the Accounts Payable feature to track unpaid bills. The bank wants to get paid, and unlike the contractor who is embarrassed to call an old customer, the bank is very willing to call early and often for any outstanding payments due. Again, the banker wants to know how long it takes to pay your bills.   Another reason to keep a proper Construction Contractor Bookkeeping System is to be sure you did not overpay a supplier or subcontractor, cell phone, the internet, liability insurance, vehicle insurance, and more.   The bills keep coming depending on your payment schedule; you may receive the past reminder notice before the original invoice arrives. Some utility companies have a history of what appears to be randomly sending the original bill.   When you

This Podcast Is Episode Number 480, And It's About How To Make Xero Accounting Work For Your Construction Business The key to making Xero Accounting Online work is ensuring your account is correctly set up and maintained. Perhaps you own a service and repair firm specializing in plumbing, electrical, HVAC, or maybe a handyman service or someone who does small construction projects that last from a few hours to a few days, and you only need to give your customer or client one invoice?   Suppose you've just started working with Xero; making a few mistakes while learning is expected. We see pretty common errors - and unfortunately costly - so you should be aware of them if you want to get the most out of Xero's powerful cloud accounting system.    Not connecting all the bank and credit card accounts dedicated to your business Make sure that you keep all your construction business bank and credit card accounts synced to Xero to ensure that you don't miss any sales or expenses in your reports. Also, ensure that y

This Podcast Is Episode Number 479, And It's About Ways Reasons Why Contractor Startups Fail And How To Avoid Them Many surveys and reports show that nearly half of all new construction companies close their doors within the first five years of opening them. When we speak with contractors who failed, most say it was due to a lack of cash flow. It was pretty obvious, yet when questioned, all of them said they were "Blind-Sided" and were not aware they were running out of cash until it was too late.   There is a point when a contracting company starts to fail, and nothing short of a massive cash infusion can stop it, and a domino effect begins, which is when a series of similar or related events occur as a direct and inevitable result of one initial event.   Planning is essential to give your business the best chances for success. Planning means anticipating challenges and developing ways to successfully address them, so they don't upset your startup.    Here are three reasons why contractor startups fail and

This Podcast Is Episode Number 476, And It's About What Every Contractor Needs To Remember When Negotiating Contracts Several aspects of the construction business can only be learned through experience. One of them is negotiating contracts.   Most people fear the negotiation procedure because it is an intrinsically uncomfortable process. Asking for more money or making personal demands doesn't come naturally to everyone. But with the right toolkit, you can breeze through contract negotiations. And you'd better get used to it because you'll have to handle many contracts whether you're a construction company owner or employee.   Having the right mindset is critical to contract negotiations. You have to believe that you are going to get your way. Bring a positive attitude and a smile to the table. You're not signing contracts with the enemy. The people you're negotiating with will be your business partners in one capacity or another.   We recommend seeking the advice of a qualified construction attorney to put

This Podcast Is Episode Number 477, And It's About Ways To Sustain The Life Line Of Your Construction Company   Cash flow refers to the movement of money into and out of your business. It's based on the amount of money you bring in minus the amount you spend. A positive cash flow means bringing in more than you're spending. A negative cash flow means you aren't bringing in enough to cover your expenses.   Your construction company can run into problems by not charging enough for goods or services, having late-paying clients, growing too quickly, or simply spending too much money.   Solid cash flow management is vital to ensuring your contracting business survives, but not everyone understands what cash flow is or how to manage it. That's likely what makes it a leading cause of stress for small business owners.    Cash flow can vary throughout the year, depending on sales cycles or whether you've made a large purchase.  Here are three strategies you can use to gain control over your cash flow. 1. Understand y

This Podcast Is Episode Number 476, And It's About How High-Profit Jobs Can Make Or Break Your Construction Company Knowing which jobs have the highest probability of success and profit before getting involved moves your construction company from an unpredictable roller coaster to a peaceful merry-go-round.   You have what appears to be a high-profit job, and now you think you have it made, and I hope you are right!   The problem is that high-profit jobs can turn into low or no-profit jobs. In some cases, they can bankrupt your construction company because you bid on the project using whatever model you are accustomed to using, and in the end, you wind up with cash flow problems.   Many problems can be traced back to the "Halo Effect," which happens when a contractor thinks, "We are so good at (fill in the blank) we should expand into (fill in the blank).  The most common situation is when a residential remodel contractor who has built a reputation and a substantial company generating profits of 15% or more

This Podcast Is Episode Number 475, And It's About Proven Construction Business Processes When Creating Your To-Do List When you're a construction business owner, your to-do list is often long and constantly growing longer. You need to do many things, and it can feel like they're all urgent. In such cases, it's easy to push essential tasks to the side and focus on less-vital activities, but that often means you miss deadlines, make mistakes or always feel as though you're trying to catch up.   Construction Companies have two basic leadership styles; wait until an urgent situation occurs and react like a firefighter or develop business processes that allow the company to respond calmly and natural resources and solutions to the issues like a traffic police officer on a sunny afternoon.   Firefighter Leaders - Operate in one of three mental states: Going into a crisis Coming out of crises Waiting for a crisis Traffic Director - Leaders operate in one of four mental states: Preparing for new projects to appe

This Podcast Is Episode Number 474, And It's About Bad Business Practices In Construction Bookkeeping One of the biggest challenges construction company owners like you have with an in-house bookkeeper is training them to work for your best interest, not theirs, and deliver consistent results and the reports you can trust daily, year after year.   Having been involved with construction and construction accounting and bookkeeping for over thirty years, we have seen a consistent pattern repeated over and over that will turn ordinary, decent, pleasant bookkeepers into a disheveled, broken, mean, nasty, arrogant trolls, and that's a good day when the sun is shining, and the birds are singing!   Here's how it happens:  Someone is assigned the construction bookkeeping duties, and they are typically mild-mannered, shy, and unable to say no. The newly appointed "bookkeeper" opens the QuickBooks Pandora's box and loads the CD in the computer, believing it will be set up and ready to go in ten minutes.  That's when t

This Podcast Is Episode Number 473, And It's About How Technology Helps Construction Businesses Save Money The use of technology in construction has come a long way. Many articles have already been written about how construction has been sluggish in adopting new advancements in technology compared to other business sectors. However, more and more companies, especially small construction businesses, have been open to using technology to improve their operations.    Any change is difficult–especially in business. Changing how things have always been done in the past involves a lot of effort, persistence, and flexibility, not to mention financial investment. To sustain the interest and efforts towards these changes, it's crucial to fully understand and not lose sight of the benefits of adopting technology. For businesses, increasing the bottom line and reducing costs are always practical reasons to leap.    Here are the ways technology helps construction businesses reduce costs: Pre-construction Process From