Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services Randal DeHart | Construction Accountant |PMP | QPA

This Podcast Is Episode 572, And It's About Budgeting, Forecasting, And Goal-Setting In Your Construction Company  
If you're like many construction business owners, you may need help understanding your finances or how you can use your financial information to make decisions for your business. We often get into business because we love a product or service we want to provide, but it's less common that we love managing the financial aspects of our business. 
 
As a construction company owner, you have the best chances of success when you regularly set budgets, develop financial forecasts, and establish goals. Budgeting, forecasting, and goal-setting are best business practices that can help you stay on track and ensure long-term success. 
 
The M.A.P. Way
Budgets are invaluable business tools because they help you manage your finances effectively. A budget is a plan for how you will spend money in the coming year. It's connected to setting goals, such as setting aside money for promotional expenses (Marketing), hiring a subcontractor, or outsourcing tasks (Production). Forecasting helps you look at your finances (Accounting) in the short term to ensure they align with your business's long-term strategy. Goals help you establish your financial priorities and set a plan for moving your business forward. 
1. Budgeting - as your roadmap
A budget is a plan for how your business will spend its money. It is a roadmap that helps you reach all your business's goals and objectives, including financial ones.
Budgeting involves tracking your expenses, revenue, and profits and making informed decisions about where to allocate resources. By creating a budget, you can keep track of your finances and ensure that you are spending appropriately in any particular area. 
Having a budget will help you control cash flow. It will also help ensure that your construction business stays on track with spending so you don't pay more than you bring in. A budget also lets you know when you have enough money in your accounts to meet expenses such as payroll, taxes, and bills. If you don't have enough cash to cover your costs, you can revise your budget to free up additional money.
Lastly, budgets allow you to understand how money flows into and out of your business, which makes it easier to meet your immediate financial needs while planning a sustainable future.
2. Forecasting - to avoid roadblocks
Forecasting is a great way to determine your business's future profit and loss. It enables you to predict future cash flow, sales, expenses, etc.
Financial forecasting can help you manage your finances by enabling you to anticipate what might happen and plan accordingly. By analyzing trends and patterns in your construction business, you can predict potential challenges and opportunities. This can help prevent overspending or under-budgeting during slow periods or high-demand seasons. 
This also allows you to provide accurate budget projections when seeking funding from banks or investors, which can help you make informed decisions and avoid potential roadblocks. 
3. Goal-setting - to help you budget and forecast more effectively
Your goals enable you to set a vision for your business and implement steps to achieve it. For example, if you want to bring in 5 new clients in the next two months, you must explore whether your marketing budget can accommodate that and adjust accordingly. 
If you aim to hire additional staff, you can look at your forecast to determine the best time to hire–and how long it will take to build up the revenue to bring in new people. 
Focus your efforts and increase your chances of achieving your goals according to the SMART guidelines: Specific, Measurable, Achievable (Attainable), Realistic, and Time-Bound.
Start by defining your top three business goals for the next four quarters. Then, with those in mind, do some research to help you decide on the best way to achieve them and a reasonable timeline

This Podcast Is Episode 571, And It's About Practical Tips To Improve Your Construction Marketing Strategy Stepping up your marketing game as a construction business owner is always a welcome topic in my client conversations. Often, contractors chat with me about the best way to promote their company, primarily because no one else is running it. 
 
You may focus more on accounting and taxes at times, and at other times, your business may slow down, and sales become more challenging. Given this trend, establishing and maintaining connections with existing and potential customers has become more critical. 
 
So, if you're looking to do some construction business promotions to attract more quality clients, what do you do, especially on your own? Here are some practical tips that I highly suggest to consider:
 
1. Build a solid online presence:
Create a website showcasing your services and experience, and make sure it's easy for potential customers and homeowners to contact you. Plus points if you know how to optimize it by location and keywords, or you can always learn a thing or two when you Google: Local Search Engine Optimization. It's essential to show up first in SERPS (Search Engine Results Page) when someone looks for "plumbing emergency in (city)" or "HVAC installer nearby."
As you build and edit your pages, keep in mind your USP (Unique Selling Proposition):
What your business does. Whom it serves. Why it's different from other companies? How is it beneficial to your prospective client? Note that some of these elements can be divided into sections and published on one page; for instance, Services and Testimonials can work well together. This gives your visitors much-needed assurance that you have had successful projects and happy clients. 
Create informative content: Share blog posts, videos, and infographics that provide value to your target audience and establish your business as an industry expert.
Remember to include your Awards and Recognition (if you have any) and place it strategically. Add value to your website footer by including your contact details, policies, and other relevant links. Include appropriate CTAs (Call-To-Action) throughout your site so prospective clients can take the necessary steps and hire your services. For example, a 'Contact Us' button or a 'Request a Quote' form can be effective CTAs.
2. Use social media: Platforms like Facebook, Instagram, and LinkedIn are great for sharing your projects and engaging with your audience. Create posts regularly to update on services or special offers. 
Local SEO is mainly about getting listed in local online resources and optimizing your website's and other platforms' online content to reference location-relevant key phrases and regional names rather than generic keywords. 
Your construction business listing must be consistent across all platforms you use, mainly because changing it later will be challenging (think about logo placement, colors, and font).
3. Register your business on online directories: This will help increase your visibility and attract more local clients. 
Google Business Profile - This is a free tool for promoting your business profile and website on Google Search and Maps. Even if you don't have a website, your Google business profile is the most crucial resource for local businesses. Claiming and verifying your business's listing will help your efforts appear in local search results. Bing Places - Microsoft's version, which might be less popular, still needs attention. It works the same way, allowing you to claim and verify your business's physical location and have it appear in Bing Maps and on mobile devices running the Windows Phone operating system. Yelp. Yelp is an online urban guide that provides local business listings. It recently replaced the relatively unsuccessful Apple Maps app for iPhones and iPads, and these devices now use data from Yelp to display local information with their includ

This Podcast Is Episode 570, And It's About Construction Business Practices For Getting Paid And Paying Yourself Running a small construction business may seem like hopping from one task to another, needing more support and guidance. That can make it tempting to let some to-dos on your checklist slide, especially those related to finances, which can be challenging and are often outside your preferred skill set or experience. 
 
The issue, of course, is that clients can only pay you once you've invoiced them. And as you make your salary a top priority, you can also pay yourself. You need an invoicing system that makes the process less painful—or even removes it entirely from your hands.
 
There are some tips you can follow to keep your finances healthy and enable you to thrive. Here are some practices to improve managing your financials so you can have the best chances of success in your construction business..
Pay yourself
The business owner's salary is the line item most often left out of a small construction company's budget.
As a construction business owner, you may be tempted to keep putting every cent you earn back into your contracting business, but paying yourself first is necessary. You need to earn a living; paying yourself can help your business succeed. You need to pay your bills and be financially sound. You'll also need to have money set aside for your retirement. 
Ensure you draw a regular income from your business to cover your expenses. Talk to your accountant for guidelines on how much to pay yourself, and always treat yourself as generously as you would your employees.
Reward financial milestones met and projections exceeded with a bonus. Raise your salary when your profit shows continuous growth. If giving yourself a raise creates some anxiety, do it in confidence, knowing you can always make adjustments as needed.
Have a separate business bank account
From day one, business owners should have a separate bank account to deposit their income and pay their business expenses.
Keeping your business and personal finances together makes it more difficult to track how your business is doing and how you're doing. Separate bank accounts for your business and personal finances allow you to monitor where and how you spend money more efficiently.
It's also crucial to designate a business-only credit card. During tax time, separate statements make submitting claimable expenses quick and easy while reducing painful audit risk.
Have separate accounts for your business and finances, and deposit your salary (see the above tip) into your account. 
Have a good billing strategy
Every business owner wants to make money. Invoicing is typically one of the tasks that contractors like the least. Chores like creating and sending invoices are set aside for other more enjoyable or urgent tasks.
Eventually, you'll deal with clients who are slow to pay their bills. Money your clients owe you isn't accessible until it's in your bank account. The good news is that we have developed two solutions that can streamline your client's payment process:
Contractor Payment Application The difficulty often comes down to waiting for clients to pay their invoices. Chasing down one or two chronic late payers costs valuable time and money; if reliable clients stay caught up on one month, the result can be devastating. Many contractors use QuickBooks For Contractors to keep track of Job Costs and invoice their clients—it works well if you only have a few simple invoices. 
The tricky part is when you get beyond two invoices, add some job deposits, and change orders because there is no "magic button" in QuickBooks to generate an invoice that will make sense to your client.
Randal DeHart created this Excel program for complex invoices, which shows the money trail from beginning to end in a way that everyone can understand and appreciate, which means you get paid faster, with less hassle, and your clients will love you

This Podcast Is Episode 569, And It's About How Not To Undercharge Your Construction Clients Contractors like you know how to pound nails, pour concrete, build homes and commercial structures, bend pipe and pull wire, install roofs, lay carpet, paint walls, and perform a thousand other tasks. So why are you not enjoying the same standard of living as other professionals? Because you are doing all of those things for anybody and everybody who asks you to.
 
Too many contractors are overworked, undervalued, and underpaid. We seek to change that for as many contractors as possible as we know how almost every sound, solid, hardworking, well-intentioned contractor is going out of business or barely scraping by, and that has to end here and now.
 
First, I must address how this could be an internal cause, such as how you deem your self-worth. Imposter syndrome is a common problem affecting people in various industries, including construction. For those who don't know, imposter syndrome is the feeling that you're not good enough or don't deserve your success despite evidence to the contrary. This can lead to undercharging clients, which is bad for business and perpetuates the cycle of feeling like an imposter. 
In construction, imposter syndrome can manifest in many ways. You may feel like you need more experience or the proper education or training. You may be comparing yourself to others in the industry who seem more successful or knowledgeable. Whatever the case, it's essential to recognize that these feelings are common and don't have to hold you back. 
However, when imposter syndrome leads to undercharging clients, it can have serious consequences. Not only are you undervaluing your work, but you're also potentially setting yourself up for failure. If you need to charge more to cover your expenses, you may need help to make ends meet or even go out of business. 
So, what can you do if you're struggling with imposter syndrome and undercharging clients? 
Here are a few tips: 
1. Recognize your value: Remember that you have something valuable to offer your clients, whether it's your experience, expertise, or unique perspective. Feel free to charge what you're worth. 
2. Focus on your strengths: Instead of comparing yourself to others, focus on your strengths and what sets you apart. Could you highlight these strengths in your marketing and client interactions? 
3. Get support: Talk to others in the industry who may have experienced imposter syndrome. Join a professional organization or mentorship program to connect with others who can offer support and guidance. 
Now that this mental dilemma is tackled, let's examine your systems and processes.
Working IN your business is a JOB (Just Over Broke)
Working ON your business is where MONEY IS MADE
What if you could do both? Work in your business and have a higher standard of living. 
Because most small construction businesses focus on survival, you pay close attention to the bottom line. This makes sense, but it also leads to being seriously overworked. Contractors like you are under increased pressure to cut their prices to get enough work, which means they need to reduce costs.
What to do?
1. Accept that you have to raise your prices at some point
It's a daunting task to consider raising your prices, as the danger of losing customers will be front of mind.
But the bottom line is this: you can only deliver quality service if you're charging enough. It's that simple.
If you're spinning your wheels trying to make up for the difference, you'll lose customers anyway. You won't be able to deliver the excellent service you're known for if you're constantly overworked trying to find profits elsewhere. 
2. Understand what's costing you
Consider your business costs at least once per year. Check which products or services are making money and which aren't. Then, take it further and pinpoint each area's breakeven position.
You will then be able to decide

This Podcast Is Episode 568, And It's About The Power Of Core Values In Your Trade Business As a construction company owner, you're the architect of your business's vision and culture. But some of the foundation often needs to catch up in the hustle to improve services, chase sales, and keep the lights on. Core values—those guiding principles that shape your company's identity—are more than words on a wall or a statement in a handbook.
 
Getting leads and doing the work is only part of the answer. Not answering them and acting on the knowledge is why many construction companies wither and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat. As a result, they need to catch up on what they could be doing to succeed and prosper over time.
 
Is the elevator pitch you used a year ago – even six months ago – still accurate? Unless you are crystal clear on who you are as a construction company, whom you're here to serve, and what you hope to achieve in the next one to three years, it will be hard to come up with meaningful goals.
 
These aren't just buzzwords to sprinkle throughout your website—your business's core values can act as the compass for your business, sharpening much about it. If your brand needs tweaking to reflect where your construction business is today and where you want it to go, start there.
 
Let's dive into why core values are critical to your entrepreneurial journey.
 
1. Core values establish a company culture.
 
A company without defined core values is like a boat without a rudder—adrift without direction. Sure, you're moving, but where?
 
Core values foster a sense of identity and purpose
 
Your core values anchor your company's culture. They define your company's personality. When employees understand and live these values, it unifies them.
 
Guide decision-making and conduct
 
Values should be your company's moral compass, setting the course for how you want your team to operate in every situation. From difficult decisions to everyday choices, they help your team stay true to the company's ethos.
 
2. Attract and retain talent.
 
In a competitive job market, your company's values can attract like-minded individuals.
 
Appeal to employees who align with the values
 
Millennials, and now Gen Z, not only seek employment but also meaningful work. They are drawn to companies whose values match their own. When you promote your business's core values, you'll find it easier to recruit those who are best suited for your team.
 
Increase employee engagement and loyalty
 
Employees who connect with your values are more likely to be engaged in their work and committed to the company's long-term success. This engagement translates to higher levels of staff retention, and engaged employees are much less likely to look for a job at other companies.
 
3. The currency of trust: build trust and reputation.
 
Consumers want to buy from companies they believe in.
 
Demonstrate integrity and authenticity
 
When your core values drive your business practices, you stand out as a company that's not just about profits but about people and principles. This authenticity in business operations builds a strong foundation of trust with your customers.
 
In a world of cynicism, displaying your core values shows that you mean what you say.
 
Enhance customer trust and loyalty
 
A company that walks the talk regarding values will create loyal customers who return for repeat business and refer others to you.
 
4. Provide a framework for decision-making
 
One of the trickiest parts of leading a business is knowing which opportunities to chase and which to pass up.
 
Help plan actions and initiatives
 
Clear core values make evaluating opportunities easier and aligning them with your company's long-term strategies.
 
Guide strategic planning and goal-setting
 
Strategic plans also benefit fr

This Podcast Is Episode 567, And It's About The Secrets To Stellar Client Service In The Construction Industry Customer service is the heartbeat of any successful business. The unsung hero transforms a potential disaster into an opportunity and a mere transaction into a lifelong relationship. In the narrative of customer loyalty and retention, service is the protagonist.
 
Your approach to customer service has the power to attract and retain clients. As a construction business owner, client service is critical to your company's success. It is essential to understand what your clients want and how you can provide the best service possible to meet their needs.
 
Why stellar customer service is key
The importance of customer service for loyalty and retention cannot be overstated. Positive experiences build stronger emotional connections with customers, leading to repeat purchases or the client hiring you again, enhanced brand loyalty, and positive word of mouth. Stellar customer service is the hallmark of success in a booming digital economy. If you have a website or are marketing your trade business online, you are part of this, or you use platforms where competitors lurk one click away. 
One of the most critical aspects of client service is communication. It would be best if you communicated effectively with your clients to understand their requirements, provide updates on the project's progress, and ensure they are satisfied with the work. 
You should also be responsive to their queries and concerns and provide timely and transparent information. 
Another crucial factor in client service is managing expectations. It is vital, to be honest and realistic about what you can deliver and to ensure that your clients understand what they can expect from you. This will help avoid misunderstandings and ensure your clients are happy with the result. 
Good Customer Experience is Key
A recent Zendesk report found that 3 in 4 consumers are willing to pay more for good customer service. This is a clear signal that in a market cluttered with varying product specifications, prices, and services, customer experience can be the factor that differentiates you from the competition.
Retention
Customer retention is cost-effective (five to 25 times less expensive than acquiring new customers) and promises a more predictable revenue stream. As a business, your job doesn't end at the point of sale—it means nurturing and retaining your customers.
Crafting your customer service strategy
Mastering the art of customer service requires a well-rounded strategy. Let's break it down:
Excellence breeds loyalty
When you deliver exceptional service, you invite customer loyalty, which fuels a positive cycle of customer lifetime value. From thank-you notes to responsive support, every interaction is an opportunity to reinforce a customer's decision to choose your brand.
Accessibility is vital
Clients shouldn't need a treasure map to find your service. Information, contact details, and assistance need to be at their fingertips. Accessibility is paramount through a user-friendly website, a seamlessly integrated app, or a robust social media presence.
The power of empathy
Empathy is the currency of customer service. It's walking in your client's shoes, understanding their pain, and making it suitable. An empathetic approach can turn a disgruntled customer into a brand advocate.
Metrics
You can't improve what you don't measure. Customer satisfaction metrics like Net Promoter Score (NPS), customer effort score, and customer satisfaction score are valuable tools to provide insight.
Customer Service in Practice: Tools and Techniques
It's time to delve into practical customer service applications.
1. Omnichannel
Customers are diverse, and so are their preferred service channels. From social media to chatbots and the phone, an omnichannel approach ensures that customer service is available and tailored to meet them where they are.