Contractor Success M.A.P.

0132; Maximize Vs Optimize


Listen Later

The First Place - To start is to understand how the 80/20 Rule applies to your construction company.
Some Construction Company - Owners feel that all staff members from the laborers to the Project Managers need to hustle and run everywhere and if they are giving less than 110% to the job they are not doing enough.
Some Contractors make sure everybody knows they can be replaced at any time day or night which makes people uncomfortable and likely to search for a job elsewhere. If someone wastes ten minutes a day on thinking about it, that could drain your cash flow and profits!
When Contractors treat suppliers and advisors like enemies, they lose money.
If Your Construction Company Profits averaged over the past five years are less than 10%, you may want to chat with Sharie 206-361-3950 for a no-charge consultation, and you may want to look at the Business Strategy Program.
We Have Hundreds of fast, easy and safe ways that can increase your company profits and put more money in the bank to operate and grow your business. It is all about having a Strategy That Works!
Maximize
Stock Your Truck with every tool you own and load it to the sky with parts then drive hard and fast you are maximizing it, and that is not a good thing.
The benefit of fewer trips to the supply houses to save you a little bit of time and money will end up costing more for each mile you drive. Use more fuel; brakes wear out faster with more weight, tires wear quicker, and vehicle suspension will need replacement sooner rather than later.
Money tied up in tools, equipment, and inventory could be invested elsewhere and make more money for you. Even worse, if you have any credit card debt or loans that money could be used to pay them down and reduce your interest expense.
If you involved in a traffic collision and the investigation reveals that you have exceeded the Gross Vehicle Weight Rating (GVWR) of your truck or van then your insurance may not cover the damages. Also, you may be liable for negligence charges.
Optimize
Stock Your Truck wisely by having a strategy that serves a niche market and uses the 80/20 Rule so you will not need so many tools, parts, and equipment.
Listen to this Podcast for more…
If you are Thinking About Outsourcing Your Contractors
Bookkeeping Services you are invited to download a guide to finding the right contractor bookkeeping service to fit your particular situation at
www.FastEasyAccounting.com/hs
Call Sharie now 206-361-3950 or [email protected]
and schedule your no charge one-hour consultation.
...more
View all episodesView all episodes
Download on the App Store

Contractor Success M.A.P.By Randal DeHart, PMP, QPA