As the new presidential administration implements its economic recovery program, no one knows how your electrical contracting business will be affected. It’s like waiting in line at the amusement park, with one big exception. At the park, you choose the rides you enjoy the most.
The holidays are over, and you are facing a new calendar and a tough economy. When money is tight and the market is down, it’s time to look for waste. When you start a business, you are conscious of every purchase and monitor cash flow.
Even with a new administration coming to Washington, D.C., next month, electrical contractors will struggle to accept the recent bailout and its effect on the economy. What can we learn from the factors that created the debacle?
You probably spend 80 percent of your resources serving 20 percent of your customers. Sometimes, breaking up with your most difficult clients is the best way to improve employee morale and your bottom line.
Oil prices are affecting everything, from transportation costs to commodities, and you may be tempted to alter your pricing to increase your backlog as a cushion against future uncertainty. Maintaining your sales revenue is like a game of basketball: most games are won by just a few points.
Last month, we explored the first three steps of FRICTO, a framework for analyzing asset-financing alternatives. As a reminder, FRICTO is difficult to apply to privately held electrical contracting firms in its entirety, since it relies on market-driven stock price for some calculations.
Regardless of the economy's health or electrical contractors’ profit margins, lost assets must be replaced. There are several ways to obtain asset financing, such as incurring more debt in the form of loans or issuing shares of stock to raise capital from investors.
Time is money, and the uncertain economy demands that you reduce overhead and improve efficiency. Here are some strategies to streamline routines and improve the flow of information by removing wasted time from your systems and routines.
Ratios are useful as both snapshots and video clips. For example, the cash on your balance sheet is a snapshot of your bank balances at one point in time. By the time you generate your financial statements, the cash balance has shifted.
Managing a profitable electrical contracting business demands a high level of efficiency and productivity. You push your office staff members and field employees to use their time wisely, but how well are you using financial information to gauge the results?
In 1989, the Occupational Safety and Health Administration (OSHA) issued voluntary guidelines for safety and health program management. The guidelines were based on the elements common to all programs used by successful participants of OSHA’s Voluntary Protection Program.
Last month, I offered some tips on reducing the cost of remote communication, such as letters, e-mails and telephone calls. Meetings are another source of inflated communication costs. Make a list of all meetings you held last year.
Even under optimal circumstances, it is difficult to control risk in the construction industry. Owners have certain advantages because they control the purse strings and often can obtain performance security in the form of surety bonds, letters of credit, guarantees or other protections.
You might have heard horror stories of partnerships ruining companies. That is why most electrical contracting companies are officially organized as corporations, not partnerships. However, corporations may be surprised to find a silent partner at the end of the day.