| Manage Cash - In business there is one rule that | | | | their third in the last four years. It is very |
| absolutely cannot be violated. That simple rule is | | | | important that you do this annually. Yes, I know |
| "Do Not Run out of Money." A violation of that | | | | that you like and trust your current insurance |
| simple rule is like getting a "RED Card" in soccer; | | | | broker. You bid jobs competitively every day, |
| you are out of the game with no chance to | | | | why shouldn't your carriers. |
| re-enter and play again. So what can you do | | | | Technology - If your software solutions are more |
| about that? As an owner, now is the time to | | | | than 4 or 5 years old, it may be time to look for |
| review all monthly recurring costs. I was speaking | | | | another solution. Don't buy just because it is |
| to a friend of mine who is a fellow business | | | | newer; buy because it will yield a very attractive |
| owner and he got out his current AMEX | | | | Return on your Investment. We have been |
| statement and highlighted all the charges that | | | | involved in some situations where the ROI was as |
| were absolutely not a necessity. | | | | little as 4 months. |
| Better Expenditures Review - I cannot tell you | | | | Marketing - This is a good time to reach out and |
| how many stories of employee theft we have | | | | call your current clients; you should ask them for |
| seen in the past 4-5 years. In articles we have | | | | a referral or a testimonial you can use to get |
| read, the annual amount has been quoted at $600 | | | | future work. It is a good time to update their |
| million on the low side just for the construction | | | | email addresses so that you can stay in touch |
| industry. I was a CFO for a company and my | | | | with them. You may want to send them a few |
| own controller cashed stolen paychecks to the | | | | job photos of the last project you did for them. |
| tune of $50,000. You know what he said when | | | | Go to or Barnes and Noble and pick up a copy of |
| we caught him? "I deserve it because the owner | | | | Duct Tape Marketing, one of our favorite books |
| made $500,000 and that isn't right, because it did | | | | in a long time. Do you have a website? They are |
| not leave enough for bonuses for us." As | | | | not as expensive as you may think. Call us and |
| individuals cope with foreclosures, mounting credit | | | | we can point you in the right direction on this. If |
| card bills or a spouse's job loss, they may turn to | | | | you have stopped going to monthly trade |
| your assets to survive. It is a small percentage of | | | | association events, now is the time to get back |
| people that will resort to this but you can protect | | | | to them. |
| yourself. We just helped a client prosecute an | | | | Training - Pick up a book online or at the library |
| individual who misappropriated almost $150,000 | | | | on a topic you may have fallen behind on. Check |
| over a six month period. | | | | with the AGC or other trade associations. I |
| Better Collections - Build into your proposals | | | | received an email from the AGC this morning with |
| incentives for prompt or early payments. Review | | | | over 20 upcoming classes. We just gave one of |
| your aging regularly, not just when your bank | | | | our clients a great book on estimating; sometimes |
| balance starts to dwindle. Assign this to one | | | | going back to the basics is helpful. Most people |
| person as their primary responsibility. We would | | | | have a tendency to take short cuts or get sloppy |
| also suggest that it may make sense to | | | | in the good times. Now is the time for good core |
| outsource this task. Another crazy suggestion is | | | | business practices, read some books and |
| to take credit cards. Yes, there is a fee | | | | implement one or two of the ideas/concepts that |
| associated with doing this, but the older a | | | | you think would add value to your company. |
| receivable gets the smaller the chance of | | | | Topics that I would suggest are project |
| collection. How many balances in your aging right | | | | management, estimating, construction accounting |
| now are either uncollectible or have been sent to | | | | and of course marketing. Our consultants |
| an attorney for collection efforts? Offer a | | | | attended over 200 hours of product training the |
| discount and accept payment by credit cards, the | | | | past two months. We are using these slow times |
| owner will like it because he will get bonus points | | | | to hone our skills and you and your employees |
| for free travel or gift certificates. | | | | should be doing the same. |
| Benefits - When was the last time you took | | | | These are just a few things to consider as we |
| competitive bids on your health insurance? What if | | | | navigate through these tough times. There is one |
| you could lower your monthly cost by $200-400 | | | | certainty in all of this, "those who are proactive |
| per employee? You need to get going on this | | | | on any of the above will be in a better position |
| now. Large companies change often. A large | | | | than those who just complain about how bad it is |
| hospital is getting another provider which will be | | | | out there. |