Paying a Bonus to Employees
We are approaching the time of year when the subject of bonuses comes up. Your employees might be saying, “Do you suppose they will pay us a Christmas Bonus this year?”
Your Clients and Your Subs
Now, if you are a subcontractor, it doesn't matter what trade, if a general contractor has hired you to work on a job your obligation is to that general contractor only.
Watch Your Overhead
It's important to set goals for your business. It's also important to track, on a month by month basis, how close your actual finances are to those goals.
Use the Right Payment Schedule
If you want positive cash flow in your construction business, make sure you're using the right payment schedule on your contracts.
A Bait and Switch Scam?
Last weekend I passed a billboard on the side of the road. It loudly declared, "We will build your new home for $32 a square foot."
Pass those savings along?
I read an article where the author talked about passing savings on to clients. This sounds well and good, but place it low on your priorities when putting a job together.
Do You Pay Bonuses for Work Done?
If you’ve raised kids in the past 20-30 years, you know the new rules – no one loses, everyone gets a prize. Don’t keep score because it hurts their feelings.
Sending Invoices for Construction or Handyman Work
Invoicing is one way clients delay paying. "Thanks for doing that work, send me an invoice, okay?" Why do contractors agree? Maybe they believe everyone does it.
Asking for a Lien Release Prior to Payment
A specialty contractor said, "A general contractor called and asked me to send a lien release. If I do that, he will send a check for what he owes me."
Who Pays Your Salary?
The next time anyone, including yourself, wants to complain about how much money you make, think about this quote from Henry Ford.
Recover Overhead and Profit in your Labor Rate
There are four basic ways to charge for construction services. These are fixed fee or lump sum pricing, Time & Material pricing, Cost Plus, and using an hourly rate.
Should Salespeople Have to Generate Leads?
Someone asked me recently if I thought a salesperson for a construction-related company should help provide leads, and how many. Yes, they should help provide leads.
What Would You Do? Getting Cut Out of a Sale
I was working as a salesperson for a fairly well run remodeling company. I went on a sales call to the home of a CPA that I’d know for some years.
What Goes On a Business Card?
One of the topics was business cards, we spent several minutes reviewing the value of a business card and how it can help promote your company.
Relationship Between Sales and Owner’s Salary
We had a question come in this week from a contractor asking about how to calculate the volume of business a company needs to support the owner’s salary.
Do Construction Jobs Have a Life Expectancy?
Does a job have a “life expectancy”? I believe it does and you should be aware of the warning signs.