FINANCIAL & STRATEGIC PLANNING
FINANCIAL & STRATEGIC PLANNING
Question : If you are an LBE with limited resources , how do you remain competitive in the construction business without giving up all your profits ?
Answer : Thoughtful financial and strategic planning .
Contractors face a litany of challenges in today ’ s industry , compounded by a lack of capital , poor contract performance , and a failure to plan . In fact , only 30 percent of all construction projects finish within 10 percent of the original budget .
Fortunately , there are three basic steps that any small and emerging business can take to remain competitive and still turn a profit : cash management , project planning and execution , and managing the business and profit model with a marketing plan .
For the layman small and emerging business , cash management involves several practices , which include preparing and understanding your balance sheet , income statement or profit-and-loss statements , a schedule of work-in-progress ( WIP ), cash flow projections , and recognizing the
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