467: Four Key Areas To Evaluate In Your Construction Business Budget

This Podcast Is Episode Number 467, And It's About Four Key Areas To Evaluate In Your Construction Business Budget With the potential for business life to return to something resembling normal, it's good to look at your budget and see where you may need to shift some of your priorities. Pay attention to how your spending over the past few years affected your business and either helped you achieve or took you away from your overall goals.    Considering how your business and your employees functioned in recent years can help you predict upcoming trends, enabling you to plan for adjustments.    There is no better time to reflect and think seriously about your construction business. Excellent organization systems add considerable value to any business because they allow you to spend more time working on your business rather than on it.   Here are some key areas to evaluate in your budget to determine whether you need to spend more or less in these areas.  1. Technology This is possibly the business area with the most room for growth–and the most evidence that adoption is needed. Technology has made it possible for your office employees to work remotely, for you to provide consultation services virtually, and for you to stay connected with your team while working from the job site. If your business is enabling remote work, you'll need to ensure you've got the proper systems and equipment, such as document storage, redundancies, cybersecurity, and anything else the law might require.  Make sure everyone on your team has access to the equipment they'll need and knows how to use it.  There's no question that these apps and software platforms can make business owners' lives easier. Most business owners didn't start their business to be surrounded by paperwork and endless record-keeping tasks. Choosing a platform that meets your company's needs will free up time and energy to focus on what you love to do.  2. Human resources With virtual work comes access to employees from across the globe. Geography is no longer a barrier to hiring skilled employees, at least not in companies that use remote work.  Having teams from across your country and around the globe is an incredible opportunity. Make sure you've invested resources in understanding the various rules and regulations they're governed by. They likely have different laws regarding payroll requirements and benefits plans. There may even be rules about how you can hire and fire employees.  Make sure you understand whose employment laws govern the work they're doing for you, and then be sure you take the necessary steps to follow those laws.  (For instance, contractors who outsource their marketing to remote employees) 3. Automated systems There are many activities involved in running your own business. Some need your time and attention. Others can be shifted to automated systems, freeing you for more vital tasks.  Take a look at the activities you regularly carry out. Even those that only take a few minutes a day add up over a year, and chances are they can be automated.  Online invoicing systems make it easy to send invoices and follow up with people who haven't paid you, all with the click of a button. Customer Relationship Management software (CRM) enables you to track leads as they move through your sales funnel and become your customers. Project management software lets you manage your projects from your smartphone, no matter where the job site is.  Most of these automated systems also produce comprehensive reports so you can gain valuable insights into your business processes. I am all about automation. Managed automation is when transactions go where I expect them to go.  Choosing the individual third-party software is always best based on the benefits. You are not getting it because it links with this but does not do what you need. I always suggest determining if the app Is helpful as a Stand-Alone Product. Determine who in the company needs it (and will use it): Office Field Estimator Project Manager Again, the key is in the setup (what do you want to know). No program does everything. In most cases, we recommend an online version of the software, which is quickly updated over the desktop version in a box. My only exception is QuickBooks Desktop Software (Get the box with CD). Set aside a week or two to look at any processes that can be automated within your business. 4. Consultants You don't have to be an expert in every aspect of your construction business. If there are areas you aren't certain of or want to learn more about; you can hire outside parties to guide your decision-making. Consultants can help you manage your construction business, evolve your career, build relationships, and even market your goods and services.  Consultants provide an external and unbiased perspective on your business. Because they're experts in their field, they have insights into what other contracting companies are doing–and what has and hasn't worked. They can also help you anticipate and plan for upcoming challenges.  We offer free one-hour consultation (if you're new to our blog and didn't know). It's time to focus on you and your needs, everything about you and your company, and anything else you want to talk about. Including but not limited to the dangers, opportunities, strengths, challenges, and concerns of being a construction business owner. You, you, you! Everything in this meeting needs to be all about you; because sometimes all a contractor needs is someone to listen. Final thoughts When you run your own contracting or trade business, your life involves many long days on job sites while managing projects, staff, and clients. There probably are not enough hours in the week for you to deal with all the issues that arise while keeping your clients happy, and taking time out of your schedule to manage your business is probably the last thing you want to do. Examine these four critical areas in your business to determine whether it's worth spending more on them in 2022 as you grow your construction business.  Or you can access our system (Technology and Automation) with an Outsourced Bookkeeping Subscription (Human Resources and Consultation) around the clock for a tiny fraction of the cost.  About The Author: Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or [email protected]