Running your own building/construction business can be complicated. Many builders are still very much ‘on the tools’ while still running the day to day operations, which can lead to long nights and early mornings. There are several simple actions you can take to ensure success, growth and customer satisfaction. Here are 7 fundamentals that you should consider when running your business;
- Firstly, ensure that you have a documented list of goals, plans and targets that you can clearly measure against your results.
- Make sure you have an accurate record keeping system recording your numbers, this way you can make informed and educated decisions about your business. Poor record keeping is one of the biggest causes of business failure.
- Ensure that you are getting paid on time. Manage your credit effectively by creating policies and procedures covering terms and conditions for providing goods and/or services, invoicing and payments and debt recovery.
- Create a cash flow forecast. Your cash flow forecast is one of the most important management tools in your business. It shows the expected flow of cash in and out of your business. It highlights potential issues, giving you the time to find ways to either prevent problems or minimise their impact.
- Are you seeking new business? Sometimes it’s easy to get trapped servicing existing customers. Develop a clear marketing strategy to grow your business even further.
- Finding your Niche. If there is something that you specialise in make sure to let your audience know. Promoting your business as a specialist in one specific Niche will ensure that you get the phone call when someone needs that service.
- Are you hitting your margin goals? It can be difficult to hit profit goals when times are tough, but if you are constantly lowering your prices at the expense of remaining profitable, you will not be in business much longer.
General advice disclaimer
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.]