Coachcasts

E448: Planning And Tracking Monthly Project Revenue

May 4, 2016 TonyB Coachcasts, Project Management 0 Comments

Our project teams play a major role in meeting our key metrics.

 

  1. Setting your monthly targets
    1. Monthly billings – project each month in advance
    2. Monthly project costs – manage your labor, suppliers and subcontractors
    3. Align these targets with the business key metrics
  2. Create a plan to reach your targets
    1. Use the Schedule of Values to predict your monthly invoice
    2. Review you labor plan to maintain cost
    3. Plan your material deliveries to meet goals yet control cost
    4. Coordinate your plans with your subcontractors
  3. Coordinate and track your efforts – If you expect it, inspect it!
    1. Coordinate your plans
      1. Make use of a 3-week look-ahead schedule
    2. Calculate the required productivity so you can track regularly
      1. Break down production to weekly or daily goals
    3. Track all activity against your plan and make adjustments
      1. Set out to meet your projected revenue by the end of week 3

E447: Know When To Adjust Your Margins

May 3, 2016 TonyB Coachcasts, Estimating, Marketing, Sales 0 Comments

Use your key metrics for making proper adjustments to your margins.

Had some technical difficulties uploading the Coachcast. You can listen here.

 

This week I will be talking about the key metrics discussed in Monday’s Coachcast and how we use them in different aspects of our business. Today we are talking about how to use those metrics in our sales, marketing and estimating efforts.

 

  1. 3 key metrics relate to the sales, marketing and estimating efforts
    1. Projected billings – we need to know how much we want to bill to know how much work we need
    2. Backlog – we need to know how much work we have to know how to adjust the bidding
    3. Sales cycle – knowing how long lets us plan the bidding process and adjust the margins
  2. Don’t stop the efforts
    1. Too many people stop selling when they have enough work – don’t stop, just adjust
    2. Keep the sales process live at all times, just be more selective
    3. We want to keep bidding projects, just make adjustments to cover any added burden
  3. Make adjustments based on your key metrics
    1. Adjust your profit margins, add loan costs, include overtime if necessary
      1. Make sure you cover the added cost of overtime on other projects too
    2. Knowing the metrics will allow you to know when you can be more selective
    3. You may win more work but at higher margins that cover the added cost
    4. The reverse is also true – these metrics will let you know when it’s time to get competitive

E446: Ask Coach – How To Manage Cash Flow

May 2, 2016 TonyB Ask The Coach, Coachcasts 0 Comments

Improper management of cash flow will strangle your business.

 

Q: Can you give me some ideas on how to manage the cash flow in my business?

A: Know your numbers.

 

  1. Follow some key metrics
    1. To manage cash you need to know the key metrics for your business
    2. Watch them closely
      1. As a PM I always knew projected monthly billings and costs
    3. Project them, track them and adjust for them
  2. What are the 7 key metrics for contractors
    1. Project monthly billings
    2. Project monthly project costs
    3. Projected project gross margins – Project Billings minus Project Costs
    4. Overhead burn rate – how much it costs to keep the lights on
    5. Average Accounts Receivables aging time – the average time from invoice to cash in the bank
    6. Sales cycle – the average time from estimate to actual billings
  3. Use the numbers to adjust and plan your business
    1. Make projections for the upcoming months / year
    2. Track the actual versus projections
    3. Use the results to adjust accordingly
      1. Increase billings and decrease cost to make adjustments

E445: Practice Focusing On Today

April 29, 2016 TonyB Coachcasts, Improvement 0 Comments

Today you are exactly where you are supposed to be. The future is up to you.

 

  1. The past is just a memory
    1. It’s gone and nothing we do today will change it
    2. Stop dwelling on the past – it will not repeat unless you let it
    3. We must use the past for lessons and move on
  2. The future is just electrical charges in our brains
    1. Have a bill due next week and not sure how you are going to pay it? Worry will not change that, only action will
    2. Don’t allow yourself to get caught up in the “what-ifs” or “I will change whens” – practice taking action
    3. The future is shaped by the actions you take today
  3. Learn to focus on today – it’s the only thing that is real
    1. We can’t change the past but we can re-negotiate the future
    2. It starts with taking action today
    3. It can be hard to stop the dwelling so try some of these things to help
      1. Write down lessons learned from the past – both good and bad
      2. Take a walk
      3. Listen to some music
      4. Let the future be a catalyst for taking action

E444: Managing Our Insurance Coverage

April 28, 2016 TonyB Coachcasts, General Business 0 Comments

Insurance is supposed to be there when you need it. Are you covered?

 

 

  1. Insurance is important and covers us when things go wrong
    1. We covered W/C, today is about other insurances
      1. General Liability / Errors & Ommissions / Property / Etc.
    2. Covers us in catastrophic events
    3. It keeps us in business
  2. Making sure we are covered properly is important
    1. We rely on our agents to do this
    2. Are you covered if?
    3. Are you paying a fair price?
  3. How can we as contractors possibly know all about insurance
    1. We can’t know it all so we rely on agents
    2. Our job is to ask questions
    3. Make sure our agents understand our business
    4. Make sure our agents are doing their job and getting us quotes

E443: Handling Drawing Conflicts & Clarifications

April 27, 2016 TonyB Coachcasts, Project Management 0 Comments

Don’t let drawing conflicts and clarifications derail your projects.

 

 

  1. Drawing conflicts and clarifications occur, embrace them
    1. It’s part of the construction process and is often dictated by budgets
    2. The design team cannot include every little detail
    3. It’s our job to bring our expertise to complete the project
  2. We are the experts and that is why we got hired
    1. We are hired to manage the construction using our knowledge
      1. This is the journey that we take with our clients
    2. These opportunities are our chances to shine and show why they hired us
    3. Handle these better than the rest
  3. Be proactive in your approach
    1. Do constructability reviews
      1. Conduct them in the estimating process, during pre-construction and during your preparatory meetings
    2. Don’t just point our problems, provide your interpretation and solutions
    3. Be the Captain of your projects

E442: Don’t Overlook The Sales Opportunities At Hand

April 26, 2016 TonyB Coachcasts, Marketing, Sales 0 Comments

Our biggest opportunity to find more work is often overlooked.

 

  1. Current opportunities are all around us – don’t waste them
    1. It’s 7 times easier to sell more to an existing customer than find a new one
    2. Current customers include more than just your clients
      1. Architects & Engineers / Vendors / Subcontractors can all lead to opportunities
    3. The best marketing is word of mouth
  2. Build relationships with all your stakeholders
    1. Relationships lead to referrals
    2. Always work to be the best in the eyes of your stakeholders
    3. Make it a habit to make their job easier
  3. Promote yourself and your stakeholders
    1. Don’t be afraid to ask
      1. Do you have any other projects? How can I help you?
      2. Do you know similar customers that you can introduce me to?
      3. Do you give referrals and I can I be one that you refer?
    2. Promote others – you can’t expect them to promote you if you are not willing to do the same for them
    3. Seek ways to work together in the right situations

E441: Ask Coach – Choosing The Right Project Management System

April 25, 2016 TonyB Ask The Coach, Coachcasts 0 Comments

Deciding what project management system to use takes some careful consideration.

 

Q: How do I know which project management system if right for my company?

A: The one you will use and fits your needs.

 

  1. The most important thing is to have a system to use
    1. This is how we organize our projects
    2. They can create time
    3. Create processes that work for you
  2. Figure out what you want then compare what is available
    1. What do you want to improve?
    2. How do you want to use it? What functions do you want to accomplish?
    3. How will you use it? Mobile? Tablet? Computer?
    4. How will clients use it? Will they use it?
    5. Make a list of the things you want so you can compare the different systems
  3. Now that you have chosen a system the work is just getting started – or maybe several systems
    1. If you don’t use the system then it’s a waste of time
    2. Create policies and provide education on using the new system
    3. Start small, maybe just one or two modules or aspects like drawing management
    4. Then add additional items as people get used to the system
    5. Inspect the work – if you want people to use it then you need to verify they are

E440: Make A Habit Of Creating Time

April 22, 2016 TonyB Coachcasts, Improvement 0 Comments

Time is our most valuable resource so work at creating more of it.

 

  1. Time is the one resource we cannot get more of
    1. We all have the same 24 hours in a day
      1. When you take out sleep and the necessary things you end up with 12 to 14 hours a day
    2. Start allocating time for other things and it’s no wonder everyone is stressed
    3. Most people don’t value time enough, therefore, don’t make it a habit to maximize it
  2. How do we create more time
    1. We can create more time with batching, routines and processes
    2. They can be simple or complex
      1. Simple – Steve Jobs wore the same outfit every day – saved 5 to 10 minutes a day
      2. Technology – Software that creates invoices from daily reports
    3. These are tools that create time
  3. Get started creating time
    1. Review your activity log
    2. Look at batching activities – ie: If you process A/P invoices every day save and do them once per week
    3. Create routines that will save you time – saving 10 minutes a day equates to 43 hours a year
    4. Create processes that will save you time and money – invest some time now for a lifetime of savings

E439: Stay On Top Of Your Workers Comp Insurance

April 21, 2016 TonyB Coachcasts, General Business 0 Comments

Workers comp protects you and your workers so don’t take it lightly.

 

  1. Workers comp is important insurance in the construction industry
    1. It protects our company in the event that someone is injured
    2. It protects our workers in the event they are injured
    3. It deserves some attention
  2. Key things to understand about workers comp
    1. Worker classifications
      1. Your rates are determined by the classification of the work your employees perform
        1. A common labor versus an iron worker
        2. An equipment operator versus a clerical worker
      2. Your rates are adjusted based on audits of your payrolls
    2. EMR – Experience Modification Rating
      1. This is a rating of your past performance as it relates to claims and safety
      2. This rate is a multiplier that is used to adjust your total premium
        1. If your premium is calculated to be $100,000 and your EMR is .80 you will pay $80,000 not $100,000
    3. Make sure your agent understands your business and represents you properly
  3. With an understanding of these key things we can do our part to help control the costs of W/C
    1. Ask your agent questions to make sure they understand your needs – if not get an agent that specializes in construction
    2. Manage your payroll closely and make sure you classify your workers properly
    3. Work to lower your EMR – safety is key
      1. This is an added benefit of our focus on safety

Contractor's Business Evaluation Course

Take this Contractor’s business evaluation course and identify the areas that need improvement most.
SIGN UP FOR THE FREE