Accounting for Construction Firms

3 Ways Contractors Can Take Advantage of the Slow Times

CPAs & Advisors

Alex Wilson
Alex Wilson CPA Principal CPAs & Advisors

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As cold weather approaches, contractors everywhere are trying to finish as much work as possible before winter. Once it becomes too cold or snowy, some will retreat indoors and wait until spring. However, construction professionals should consider doing several things during the down time to stay ahead with their business.

  • 1.Attend trade shows and conferences – Throughout the first quarter of the year, there are opportunities to attend conferences throughout the country. The conferences shed light on new laws and best practices within the industry, and offer fresh ideas to incorporate into your own business. There are also opportunities to be an exhibitor at most local trade shows, which is an easy way to get name exposure for potential clients who otherwise may not know about your business.
  • 2.Network – Making solid connections is something every builder should do year-round. However, during the down time, there is no excuse of having too much work to do, so going to association meetings or mixers is a great way to meet new people. This is a time to showcase your expertise in your field, and attending these events can be a valuable tool in building relationships with colleagues (such as potential subcontractors to work with), industry professionals (such as a board member of an association) or potential new clients.
  • 3.Learn from last year – Taking time to review the numbers from the prior year and identify ways to grow or improve processes is key to long-term success of your company. Forecasting for the next year and implementing a budget are ways to effectively manage cash flow. One of the biggest struggles contractors face is cash flow during the slower times of the year. Having a budget and being smart and precise with expenditures will allow your company to maintain momentum into the down times. Whether it be purchasing materials for jobs ahead of time, paying down debt earlier in the year, or restructuring the bidding process, identifying these options early and having a plan will ensure the health of your company.

For help in preparing a budget or a forecast for future years, or assistance in identifying which construction industry associations make the most sense to join, contact me or a member of Yeo & Yeo’s Construction Services Group.

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