When You Fail To Plan...
You Plan To Fail!
Most contractors run their business shooting from the hip. Just firing away at whatever problem has popped up. Operating in complete reactionary mode.
Then, they arrive at the end of the year discovering,
- Their year was unprofitable.
- Their crews stood around too much.
- Their equipment was unavailable.
- Most of their jobs finished late.
Few contractors plan well. Planning is a tedious and boring task for most people and especially to action oriented folks (like contractors).
But ask yourself this, "how likely am I to meet my business goals if I don't figure out exactly how I'm going to meet them?" Not very likely. Detailed planning is essential to the long term health of your business.
The purpose of planning is to eliminate negative surprises by proactively addressing problems before they arise. You need systems for:
- Determining which markets to pursue.
- Creating an annual budget.
- Creating cash flow budget.
- Increasing your credit line.
- Planning project completion.
- Scheduling work crews.
- Determining when to buy equipment.
- Scheduling your equipment movement.
- Increasing your bonding capacity.
- Adding staff.
- Reassigning people.
- Managing inventory.
- Maintaining your equipment.
- Completing and submitting pay applications.
- Completing and submittal certified payroll.