Construction Management’s Post

"Ever wondered why 65.6% of businesses fail within 10 years? 🤔 In construction, the reasons may surprise you. See why...👇🏼👇🏼 According to the BLS, nearly half of new businesses fail within their first five years. More than two-thirds have closed their doors for good by the time businesses reach ten years of operation. But the question is, why? ❓ Two major culprits are often at play: 1️⃣ Cash Flow Issues 2️⃣ Inadequate Financial Planning 🛠️ Why should this matter to you in construction? Construction projects consume huge sums of money and hence require very high amounts of money inflow. It is, therefore, highly sensitive to project schedules and their accompanying payment schedules. Poor cash management would mean projects that stall, a company that cannot pay staff or worse would be forced out of business. Imagine this: What if you could predict when cash shortages might occur and plan accordingly? 💭 What if every decision was backed by a solid financial forecast that aligns with your business growth? You can achieve these goals by implementing the following actions in your business. 💼 ⭐ Rolling Cash Flow Forecasts: Update cash flow forecasts regularly to reflect the latest data and project changes. ⭐ Job Costing: Track budgeted vs. actual costs for each project in real-time to manage cash flow and prevent overruns. ⭐ Scenario Planning: Prepare for different financial outcomes through best-case, worst-case, and likely scenarios. ⭐ Use of integrated software—this helps in ensuring consideration of up-to-date and accurate data through the use of software integrating project management together with financial accounting. ⭐ Periodical Financial Reviews: Frequent will hold periodical reviews with the project managers and stakeholders on the state of financial health for prudent decision making. ⭐ Performance Metrics: Monitor key financial indicators for making business strategies, including cash flow margin and return on investment. ⭐ Capital Reserve Fund: Set up a fund that would be used in dealing with financial needs or opportunities cropping up from time to time without pressure from outside finance. 🔍 Stay ahead of the game: Build a firm financial foundation of long-lasting service. Don't be one of the statistics but rather a benchmark of success in the construction industry. 🚀 #ConstructionBusiness #FinancialPlanning #CashFlowManagement #Business

You Might Not Believe The Impact This Simple Change Has On Our Projects. With extensive experience in the construction industry, I have witnessed how small issues can snowball into significant problems. Without proper financial guidance, contractors often encounter challenges ranging from cash flow management to pricing strategies. ⁣ ⁣ The goal of this article is to shed light on how Business Consultants can help contractors streamline operations, and achieve sustainable growth. ⁣ Regulatory changes, fluctuating market conditions, and tight budgets constantly pressure contractors. In these challenging times, financial health is paramount, and even minor financial mistakes can be costly.⁣ Providing expertise in financial management, a Business Consultant serves as a strategic partner for contractors. Here’s how a financial consultant can help:⁣ ⁣ 1) 𝑪𝒂𝒔𝒉 𝑭𝒍𝒐𝒘 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕:⁣ Issue: Contractors often struggle with cash flow due to delayed payments from clients, unexpected project expenses, or poor financial planning. 𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: We can implement robust cash flow management practices, including forecasting, monitoring, and optimizing cash flows. By ensuring timely invoicing, setting up effective payment terms, and creating cash reserves, contractors can maintain liquidity and avoid financial stress.⁣ 2) 𝑷𝒓𝒊𝒄𝒊𝒏𝒈 𝒂𝒏𝒅 𝑪𝒐𝒔𝒕 𝑬𝒔𝒕𝒊𝒎𝒂𝒕𝒊𝒐𝒏:⁣ Issue: Incorrect pricing and cost estimation can lead to underbidding, reduced profit margins, and financial losses.⁣ 𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: I can analyze project costs, benchmark against industry standards, and develop accurate pricing models. This ensures that contractors bid competitively while maintaining healthy profit margins 3) 𝑩𝒖𝒅𝒈𝒆𝒕𝒊𝒏𝒈 𝒂𝒏𝒅 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝑷𝒍𝒂𝒏𝒏𝒊𝒏𝒈:⁣ Issue: Lack of a structured budgeting process can result in cost overruns and financial instability.⁣ 𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: I can help create detailed budgets for projects, including contingencies for unexpected expenses. They also assist in long-term financial planning, aligning business goals with financial capabilities and identifying growth opportunities.⁣ 4)𝑫𝒆𝒃𝒕 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝒂𝒏𝒅 𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒏𝒈:⁣ Issue: Contractors may face difficulties in managing existing debts or securing new financing for expansion.⁣ 𝑆𝑜𝑙𝑢𝑡𝑖𝑜𝑛: I can evaluate the contractor’s debt portfolio, negotiate better terms with creditors, and explore financing options such as loans, lines of credit, or equity financing. They can also prepare compelling financial proposals to attract investors.⁣ If you are a contractor facing financial challenges or looking to grow your business, I am here to help. ⁣ Let’s connect and discuss how we can work together to solve your issues and drive your business forward⁣

Unlock the secrets to profitability in construction with our deep dive into overhead budgeting and analysis. Learn the importance of tracking overhead costs, what they include, and how to calculate them accurately for project success. #ConstructionCosts #OverheadBudgeting #ProfitabilityStrategies

Have you got a spreadsheet that shows your margins for each project? For our client who was working alongside a group of associates during their growth period they wanted a spreadsheet that was able to calculate their margins, using the associate's cost and project income. We can help you to understand your project finances better to ensure that each project brings profit into your business. Giving you clarity and defined understandings of each project. #VirtualAssistant #UKVirtualAssistant #AccountingVirtualAssistant

Just because you have the OPTION to do something alone, doesn’t mean you need to. I see this all the time, where it’s considered embarrassing to “ask for help” and people rather be prideful, than exposed. Let’s remove that stigma. Just because a business has the option to not have a financial partner, doesn’t mean that they HAVE to say no to it. The hoops that the business had to go through to get that partner, speak great value that the business is actually: 1. Growing 2. Looking at the future long-term 3. Aware of their finances 5. Strategically planning ahead So why wouldn’t someone want to work with a company, that already has trust from someone that is investing in them, and now has access to cash that allows them to perform at their best? 𝗦𝗲𝗲𝗸𝗶𝗻𝗴 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗼𝗿 𝗵𝗮𝘃𝗶𝗻𝗴 𝗮 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗽𝗮𝗿𝘁𝗻𝗲𝗿 𝗶𝘀𝗻’𝘁 𝗮 𝘀𝗶𝗴𝗻 𝗼𝗳 𝘄𝗲𝗮𝗸𝗻𝗲𝘀𝘀 𝗼𝗿 𝗱𝗶𝘀𝗮𝘀𝘁𝗲𝗿 𝘄𝗮𝗶𝘁𝗶𝗻𝗴 𝘁𝗼 𝗵𝗮𝗽𝗽𝗲𝗻.  Sure, there are some negative perceptions out there, but those usually stem from the wrong partnerships or unfavorable conditions. And here’s something to consider, especially for general contractors: 𝗝𝘂𝘀𝘁 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝘆𝗼𝘂𝗿 𝘀𝘂𝗯𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝗼𝗿𝘀 𝗮𝗿𝗲𝗻'𝘁 𝘃𝗼𝗰𝗮𝗹 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲𝗶𝗿 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗻𝗲𝗲𝗱𝘀 𝗱𝗼𝗲𝘀𝗻'𝘁 𝗺𝗲𝗮𝗻 𝘁𝗵𝗲𝘆'𝗿𝗲 𝗰𝗿𝘂𝗶𝘀𝗶𝗻𝗴 𝗰𝗼𝗺𝗳𝗼𝗿𝘁𝗮𝗯𝗹𝘆. 𝗜𝘁’𝘀 𝘁𝗵𝗲𝘀𝗲 𝗲𝘅𝗮𝗰𝘁 𝗮𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗼𝗳𝘁𝗲𝗻 𝗰𝗿𝗲𝗮𝘁𝗲 𝗽𝗿𝗼𝗯𝗹𝗲𝗺𝘀 𝗼𝗻 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀! The reality? Many are too apprehensive to admit they need a financial boost to help manage their projects more efficiently. They’re not directly asking for cash; rather, they're hinting at leveraging financial partnerships that could significantly benefit both parties by ensuring smoother, faster, and higher-quality project completions. However, the fear of misinterpretation or causing unease prevents them from speaking up, leading to a silence that could hinder project success. The cash flow cycle of construction, especially for a subcontractor, and the amount of cash needed to get a project started is no secret to anyone on the project so why would it not be a topic everyone discusses just like design, materials, or labor? In my opinion, we need to encourage a culture where discussing financial strategies is seen not as a vulnerability but as a proactive step towards better collaboration and project execution. What are some ways discussing financial strategies has helped you? #cashflow #cashflowmanagement #construction #constructionindustry #businessgrowth #finances

Master the Art of Cash Flow Management in Construction As a contractor, you're not just constructing buildings; you're paving the way for a prosperous future. We understand that managing cash flow can often feel like navigating a complex maze, causing stress and uncertainty that hinders growth. But what if cash flow management didn't have to be such a headache? With the right approach, this vital aspect of your business can become streamlined and intuitive. By focusing on three key areas, you can gain complete control over your finances: 1. Owner's Pay: Ensure you are fairly compensated for your leadership and hard work. 2. Job-Related Costs: Effectively manage the financial aspects of your projects. 3. Overhead: Keep a watchful eye on everyday expenses that keep your business running. By honing in on these areas, we can revolutionize your financial management strategy. No more second-guessing or uncertainty. You will have a clear understanding of where your money is and how it's working for you. I am an accounting expert specializing in assisting contractors like you. Together, we will develop a tailored Cash Flow Management Plan that suits your unique needs. Let's have a conversation to address your financial challenges and goals. Imagine your business functioning like a finely-tuned machine, with a consistent and predictable cash flow fueling your growth. Say goodbye to sleepless nights filled with financial worries. Instead, you will have the confidence and peace of mind to focus on what you do best - building. Don't let neglecting your cash flow jeopardize your business's future. Move from feeling overwhelmed and unprepared to become a confident and savvy business owner with a thriving and financially stable construction business. #CashFlowMasteryConstruction #ArtOfConstructionFinance #MasteringConstructionCashFlow #ConstructionFinancialExcellence #CashFlowArtInConstruction #BuildingFinancialSuccess #ConstructionFinancePro #ManageCashFlowInConstruction #FinancialArtistryInBuilding #ConstructionCashFlowExpert

Understanding your budget range is crucial for the success of any construction project. We tailor our services to fit your financial goals and ensure you get the best value for your investment. Why Define Your Budget Range? Clear Planning: A defined budget helps us plan accurately, aligning your expectations with the project's scope. Cost Control: It allows us to identify cost-saving opportunities and avoid unexpected expenses. Quality Assurance: Knowing your budget helps us recommend the best materials and methods that fit within your financial constraints. Efficient Allocation: It ensures resources are allocated effectively, preventing overspending and delays. Our Approach: Customized Estimates: We provide detailed, customized estimates based on your budget. Transparent Communication: We maintain open communication to keep you informed and involved in financial decisions. Expert Guidance: Our team offers expert advice on balancing budget and quality, ensuring your project's success. Ready to start your project? Share your budget range with us, and let’s create a plan that fits your financial goals. Contact us today! Email: [email protected] Learn more: www.bluebookestimators.com . . . #CostEstimation #ConstructionBudgeting #ProjectPlanning #ConstructionManagement #BuildingSuccess #AccurateEstimates #ConstructionIndustry #ProjectEfficiency #BudgetControl #ConstructionExperts #RiskManagement #SustainableBuilding #ConstructionSolutions #Building #ConstructionProjects #BuildingDreams #ConstructionIndustry #ConstructionSite #GeneralContractor #ConstructionManagement #ConstructionWork #CommercialConstruction #ResidentialConstruction #CivilEngineering

Managing finances in construction isn’t as simple as sending out invoices and tracking payments. The unique nature of long-term projects means revenue recognition, cost management, and job costing all require a different approach. Ignoring these differences can lead to cash flow issues and unrecognized revenue, jeopardizing the success of your projects. In our latest Create The Next blog and video at https://lnkd.in/e4vTSGeq, we explore construction accounting best practices and discuss how understanding the intricacies of revenue recognition can help keep your business on track. From breaking down project costs into manageable categories to preventing scope creep, we cover the essentials that every construction company needs to know. We also talk about how a fractional CFO with construction expertise can provide strategic financial oversight without the commitment of a full-time role. Whether you’re scaling up or trying to control costs, fractional CFOs can help companies navigate financial challenges, optimize job costing, and improve project profitability. For anyone managing finances in the construction industry, this episode offers practical advice on keeping your projects financially sound from start to finish. #ConstructionAccounting #FractionalCFO #JobCosting #ProCFOPartners #CreateTheNext #FinancialManagement

On social media, many advise to "manage your cash flow." Yet, the 'how' part is often missing. Allow me to fill in that gap. Here are seven straightforward steps to manage cash flow in your construction company: 1. Implement Cash Flow Tools   For instance, consider utilizing software like QuickBooks or Pandle for cash management. 2. Make Accurate Estimates   Draw from previous projects' data to realistically estimate future budgets. 3. Track Expenditures Regularly   Perform weekly checks of your actual outflows versus your projected budgets. 4. Forecast Future Needs   Predict your future financial needs based on past trends. 5. Set Defined Budgets   Assign specific budgets to individual projects to prevent overspending. 6. Hold Employees Accountable   Ensure project managers strictly adhere to the budget and the finance team inspects cash flow trends. 7. Regularly Review and Adjust   Alter your financial strategy according to your business's performance and market fluctuations. Managing cash flow is an ongoing task, not a one-off. It's the lifeblood of your business and should never be overlooked. #ConstructionManagement #CashFlowManagement

🤷🏻♀️ I mean.. we've been there too. So here's the checklist we always make sure to cross out as we go. ✅ Win the bid: Create a compelling proposal that details your business, the project, and your costs. ✅ Plan the project: Develop a roadmap with tasks, responsibilities, and milestones. ✅ Manage the budget: Create a budget and track expenses using accounting software for automation. ✅ Define your approach: Determine the required workforce, materials, and permits. ✅ Monitor progress: Track costs, inventory, and legal compliance to ensure project stays on track. ✅ Complete and close out: Conduct a final inspection, finalize finances, and meet with the client. 😉 Here's an easy way out, work with us for a stress-free project! 📞 07709073904 📧 [email protected] #ukproperty #propertyuk #realestate #realestateinvestment #passiveincome #buldingwealth #propertyinvestment #propertydevelopment #buildwealth #ukpropertyinvestment #ukpropertydevelopment #buildwealththroughrealestate #cashflow #lettings #construction #projectmanagement #sourcing #rugbywarwickshire #abacuspropertygroup