This Podcast Is Episode Number 0343, And It Will Be About Efficient Business Systems And The Value Of Documenting Your Processes   Too many construction businesses fall over because the owner has not established efficient business systems. This typically happens because the construction company owner is so caught up in the day-to-day operations that the fundamentals of proper business management get forgotten. Often too, it must be said that the owner doesn't like bookkeeping or other administrative tasks, so these get put on the back burner. The symptoms are familiar, and their results disastrous: Poor or non-existent record-keeping.  Tax obligations are not met.  Invoices go out late, and debts remain uncollected.  There is one cashflow crisis after another.  Goods and services are incorrectly costed and priced. Any of these factors can lead the business down the slippery path to failure, but all are avoidable. The whole point about putting in sound systems is that they free you to spend more time working ON your business, not in it. Be Business-like To be in business and to remain in business, become a business person! To run a business, you must be business-like. It's not sufficient to be very good at what you do. Lots of people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that" is also no excuse. Are you 'too busy' to be a competent businessperson? If so, your business won't last long. You must continue to develop your business skills. To be a businessperson, you have to make an effort to become something of an 'all-rounder', not just a specialist player. You can offer outstanding services, but if you don't develop superb business systems, then you are not a fully rounded businessperson, and your business will be in danger of failing. Remember that other stakeholders in your business, such as the building material suppliers who give you credit and the bankers who extend loans and financing terms, are always assessing your business skills. If you consistently pay people late or can't meet the terms of your debt agreements, they will draw the obvious conclusions about your business skills. How Good Business Systems Will Help You An exceptional business system will make your construction company stronger, more efficient, and easier to run. It will also make your business far more attractive to future buyers because if you have developed clear operating and procedure manuals, the company will be seen as an independently viable unit and less dependent on you.  Think, for instance, of what makes franchises so successful: it's because they are designed so that people can buy a proven system and operate it after minimal training. They can do this because the business procedures are captured in simple, clear operating manuals.  Here are some ways to implement excellent business housekeeping: 1. Good record-keeping and bookkeeping - will help you keep on-side with the Internal Revenue Service department. If you're able to meet your tax obligations through sensible planning, you'll sleep better at night. You won't fear a tax audit, and you'll know how your business is doing. A 'sudden tax demand won't catch you out of the blue' because no such thing exists for a well-run construction business. You should always know which taxes are due and when. You'll suffer less stress. 2. Proper business planning - will help you set goals for your business, with specific steps on how to achieve these goals. Without goals, where do you think you're going? Running a business without goals is like turning up at an airport and saying, "I'd like to go somewhere." The person at the ticket desk would think you're clueless! 3. Positive cash flow forecasting - will enable you to anticipate a possible cashflow problem (something all growing businesses experience from time to time) and take steps before the problem becomes a crisis. Banks will respect you if you anticipate...