EXPERT ADVICE | ADVERTORIAL
This leads me to my thoughts on how
the coronavirus will affect the paving and
pavement maintenance markets?
The situation calls for us to be proac-
tive--you cannot wait it out and assume
life will come back to normal. You have
to plan for the new normal and estab-
lish a current baseline. Everyday life has
changed so that standing two yards apart
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Business plans are living documents that
should be reevaluated and adjusted to
current economic and social conditions.
Definitely put together an estimating
budget. It doesn’t hurt to create a fi-
nancial and business plan with different
scenarios to provide the guardrails for
moving forward in different situations.
For example, if you put a division or
cut costs and operate lean? The idea is to
stay financially healthy until you can re-
turn to normal operations.
When it feels like so much is out of
control, it can be difficult to even grasp
what makes good business sense, but op-
erating from a plan early on can have a
long-term beneficial impact.
Communication is crucial during this
Now more than ever it is important to have a business and financial plan.
Business plans are living documents that should be reevaluated and adjusted
to current economic and social conditions.
and wearing a face mask is becoming the
new normal. The mindset and buying
habits of current and future customers
have also changed.
Now more than ever it is important
to have a business and financial plan.
segment of your business on hold due
to COVID-19, what will re-starting that
operation at a later date look like?
It makes sense also, to engage in some
cost side management. What areas do
you need to make tough decisions on to
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time of uncertainty. Keep employees in
the loop through email, texts, and face-
to-face meetings where possible. The
same goes for customers--current, past,
and even prospective customers. And,
of course, don’t forget vendors/suppliers,
attorneys, and your financial team, espe-
cially your bank. Keep them all informed
During this tough time, it is also criti-
cal that your business should be building
liquidity or cash reserves. This includes
cash, lines of credit, and unpledged as-
sets that can be used as collateral on new
loans.
Your annual budget is your key to sur-
vival. It can help you calculate accurate
project estimates, allow you to allocate
overhead, determine labor burden, pro-
vide equipment costs, and help you de-
termine profit margins. Your budget is
your pricing model.
One thing that’s certain, competition
will be fierce this year. Contractors will
be looking for sales at any cost. You need
to use an accurate pricing model when
bidding.
Most states are in “lockdown” with only
essential businesses remaining in opera-
tion. Pavement business owners need to
interpret the “shelter in place” language
so that they are part of the essential
workforce. Too many pavement business
owners are interpreting those orders too
narrowly and shutting down operations
at a time when they don’t need to be shut
down. Until someone tells you otherwise,
1.800.210.5923