In an article titled How Contractors Get Rich, I introduced you to the six systems that control the fate of your construction business. In this article, we address financial control.
As a reminder one last time, they six systems are:
1. Marketing
2. Sales
3. Staffing
4. Planning
5. Tracking
6. Financial Control
Before diving into the details, let0s take a moment to discuss the role financial controls play in your business.
To start with, the purpose of having a business is to create more wealth than you would as someone0s employee. Since few things in life are riskier than owning a business, keeping a close eye on the financial end and taking care of all the annoying little accounting details is of utmost importance.
That said, financial controls perform a defensive role.
Sales and operations are your offense. They score the points. They earn the money. Without them you have no money.
Financial controls make sure you get to keep the money you earn. They keep you out of trouble.
If you listen to financial advisers and accountants, they will try convince you that the secret to business success is financial control. In other words, setting financial goals and watching their performance closely. They are gravely wrong. They have the cart before […]
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