This Podcast Is Episode Number 0308, And It Will Be About Three Things You Need To Deliberate When Starting A Contracting Company Would you like to start a construction company but can’t seem to move forward with your plans? There are a number of people who pass advice on how to start a profitable construction company, however, very few have actually done it. Hardly any of the ones that had done so had a clear understanding of where they were making or losing money, some have never gotten past the point of owning a J.O.B. (Just Over Broke) into a real company with employees who actually generated more money than they cost starting up. I am one of the few that has done it all and hopefully, this article will be of use to you. First, make sure you are open to a Paradigm Shift. According to the Merriam-Webster online dictionary, a paradigm shift is an important change that happens when the usual way of thinking about or doing something is replaced by a new and different way.   Three Steps To A Paradigm Shift Unfreeze – Being open to a new idea that is an agreement with your core values Change State - Arriving at a new understanding of something. Education is the foundation for shifting paradigm. In ancient Greece, Socrates argued that education was about drawing out what was already within the student. "I cannot teach anybody anything; I can only make them think." Refreeze – Closing the portals of your mind for now Since 99% of your success will depend on whether you follow directions or try to re-invent the wheel, consider the following fundamentals first to avoid unnecessary risks: First, decide what you want from your construction company. Do you want to get rid of the boss? Do you want to work in a more structured environment? Are you sick and tired of working for the boss's son or daughter? Do you want to make a lot of money? Do you just want to make enough money to pay the bills and enjoy a vacation now and then? There are no wrong answers, whatever is right for you is the right answer; however, you need a reason to do it otherwise when the going gets tough, and you will either win or lose depending on your reason. With a big enough reason, you will find a way to win. Write it down on a piece of paper, it doesn’t have to be perfect or complete. Second, put together your board of advisors.  Most of them are FREE or very low cost while you are just getting started. They are from the Five Key Areas of Business Success:   Find a Commercial Banker you can work with Go to your bank and ask to speak with the commercial banker. Every bank has one and they can be one of your most powerful allies and mentors. The really good news - they are on the bank’s payroll. Tell them you are working with a construction accountant that is involved with the bookkeeping and accounting and that you have a totally separate firm that prepares your Annual Federal Tax Return. Bankers like to know you are using the tried and true method of "Trust But Verify" to help limit fraud and errors. We recommend you have different companies doing your bookkeeping and your Annual Federal Tax Return because that will provide you with checks and balances in your system. In addition, if you need to replace one or the other it will be a lot simpler. Plan on meeting with them on a monthly, quarterly, semi-annual basis, whatever works for both of you and bring two printed copies of your Profit & Loss and Balance Sheet for them to review with you. Always keep your commercial banker updated about any major changes that may affect your business or personal finances. NEVER SURPRISE YOUR BANKER!  Ask your commercial banker these questions: Is there anything on the financial reports I should pay closer attention too? How can you and the bank help me run my business more profitably? Who is your target customer and how can I refer new customers to you? No matter what...