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Building Ideas
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| Helping Builders Become Business Savvy |
| 03/07/2007 |
While most builders have their trade’s technique down, many aren’t sure how to properly manage their business finances and turn a profit.
“It’s epidemic in our industry,” said Michael McCutcheon, president of McCutcheon Construction. “Finance is key to business success and the core of that is cash flow, but many don’t understand this.”
And so at the request of Truitt & White, Michael agreed to teach them by conducting two recent workshops sponsored by Truitt & White on how to profit from a remodeling business. Both received good attendance; the first focused on pricing and money strategies while the second delved into the art of deal making.
Michael presented his ideas to a mix of experienced contractors and small start-up contractors. “I laid out what I believe are the fundamentals for keeping them in business,” he said, “and what would ideally make a profit.”
Michael discussed how to manage cash flow, strategize appropriate pricing and grow the value and worth of a builder’s business. He also went over the basics of financing, reviewing profits and losses (P&L), balance sheets, work in progress (WIP), payroll, accounts payable, and more.
“People were absorbed in it, interrupting frequently to ask questions,” Michael said. “Everyone seemed to be interested in and enthusiastic about becoming better businessmen.
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