How To Overcome Your Funding Challenges
If you’re an entrepreneur, funding challenges might likely be keeping you awake at night. Maybe you’re not entirely sure how you’ll cover next month’s bills or how you’ll pay yourself. Perhaps you’re the last to be paid and often receive less than anyone else in your business. You’re not alone! Many businesses, especially growing ones, […]
What Is Direct Cost? Understanding Direct and Indirect Costs
Understanding Direct Costs So, what is direct cost? Simply put, direct costs are the expenses you incur directly in the process of delivering a product or service to your customer. Imagine you’re building a road. The direct costs would consist of the bitumen, concrete, and steel used in construction, the wages of the crew who […]
Construction Variations And How To Successfully Manage Them
The Problem With Construction Variations A casual ‘yes’ on the site can spiral into a heap of issues down the line. Picture this – you agree to a variation, get to work, and then, come payment time, there’s a problem. No formal agreement was made, no signatures collected. The person who gave you the go-ahead […]
How Managing Your Cash Flow Will Help Your Business Thrive!
Create a rolling weekly cash flow forecast An effective way of focusing on cash is to create a rolling weekly cash flow forecast. This allows you to see your starting point, your receipts, your payments, and your net cash movement. Then run this forward for several weeks or even months. By forecasting your cash flow, […]
How To Challenge Retentions And Boost Your Cash Flow
Understanding Retentions Retentions serve as a form of security in the construction industry, ensuring that contractors fulfill all their contractual obligations. These may include rectifying any defects or deficiencies in their work. Typically, around 5% to 10% of the contract value is held back throughout the construction project. These retained funds are usually released upon […]
Capturing Information From The Site: The Key To Construction Success
The Problem? In the fast-paced world of construction, it’s all too common for valuable information to get lost in the shuffle. Picture this: invoices and other essential costs remaining with the Site Foreman, never making their way back to the Head Office or the Accounting Function. The consequence? Missed invoicing opportunities and reduced profitability! It’s […]
Mastering Project Financials: Know Your Numbers to Drive Success
The Significance of Monitoring and Reviewing Projects Individually Monitoring and reviewing projects on a project-by-project basis enables you to have a granular understanding of your business performance. This approach allows you to identify areas for improvement and assess the effectiveness of your quotations. Failing to conduct individual project reviews can lead to missed opportunities for […]
Why You Need to Know Your Numbers
Keep on Top of Your Financial Information As the Business Owner, you are supposed to be the expert in the area in which your company provides products or services. For most Business Owners, this is generally linked to something that they were trained in, and it is usually the key focus of the service provided […]
If you Know Your Numbers, You Will Know Where You are Going
Do You Know Where You Are Going? “If you don’t know where you are going, any road will take you there.” A quote attributed to Lewis Carroll. It didn’t actually appear that way in the Alice in Wonderland Books, although that sentiment was precisely what the discussion between Alice and the Cat was about. It […]
Don’t Guess – Know Your Numbers
How Do You Know You Have Had a Good Day Financially? Most Business Owners rely on guesswork and their intuition to determine whether they have had a good day, a good week or a good month in their business. It is a question I like to ask when I first meet a Business Owner. We […]