0110: Passing Your Construction Company To Next Generation

This Podcast Is Episode Number 0110 And It Will Be About Passing Your Construction Company To Next Generation

There will come a time when you will pass your construction company on to the next generation, sell it or simply close it down. If this is something, you are considering in the near future or perhaps several years down the road it is never too early to begin planning for it.

Prior Planning Prevents Poor Performance

Planning hurts! Because it involves "thinking" which is, some of the hardest work you will ever do and it is the most profitable in the long run. Just knowing the answers or at least having a strategy for finding answers can mean the difference between comfortable lifestyle and the all too common "Work-Till-You-Die" treadmill that far too many contractors are on.

Start by asking yourself two simple questions:

#1 If your construction company were for sale, would you buy it?

#2 How much would you be willing to pay for it? 

Common Contractor Paradigms Of Mom And Dad Contractors

They are Dog And Pickup Truck or Salt Of The Earth Contractors and I love them all!

Construction Company frozen in time doing business the same way since they opened the doors Mom is doing the books and she is so sick of it she is ready to divorce Dad and start a new life Worse yet there is an employee who is a Bad Bookkeeper, Incompetent Bookkeeper or and Embezzling Bookkeeper Sons and Daughters grew up working in the family construction company and not allowed to initiate new ideas The Paradigm that Sons and Daughters need to do everything themselves; just like they did. The "Joe Hardway Method" Resistance to having websites, cloud services, online data storage and retrieval, old worn out office equipment When Mom and Dad do let go they want to take all of the money they have always taken plus more so they can travel

Please understand I love contractors because I have been blessed to grow up with a wonderful family that earned our daily bread as contractors. My Step-Father was one of the greatest men I have ever known was a "Salt Of The Earth Contractor".

I did not really appreciate him until I was married, living on my own. Once I discovered all of the things I took for granted, like food, clothing and shelter my eyes were opened. Thank goodness, he helped us make a smooth transition despite my youthful know-it-all arrogance, which quickly disappeared. 

If you are considering passing your Construction Company to your heirs in the near future or perhaps several years down the road, it is never too early to begin planning for it. Here are three steps to get you started:

Step #1 - Your Story

Get a legal size pad of paper or open a word processor on your computer and write your story from the perspective of the future. Describe why you opened your contracting company, when it opened and describe some of the projects, good and bad you worked on. Tell what happened and which ones you had the most fun doing, most likely those are the ones you made the most money doing, and the ones that gave you the most trouble.

Step #2 - Lessons Learned

Write down what you would do different if you could start all over again. Which customers and projects would you avoid and which ones would you pursue? And list reasons why for each type?

Step #3 - Start Over

Remodel your current contracting company to be the one you would start if you could start over again. This may sound strange but it works. Just because you have done the same thing over does not mean you can never change. Change can be good! McDonalds started out to be a way for Ray Kroc to buy land and generate enough money to pay the mortgages and taxes. Now McDonalds has massive land holdings. Many people ended up doing something different from what they started after having discovered new and better paths and you can do it too! 

Step #4 - Board Of Advisors

A Board of Advisors is NOT a Board of Directors. These are our Five Key People whom you are likely paying for their services, one way or another and not getting your money's worth. They are (1) Your Commercial Banker, (2) Your Construction Accountant, (3) Your Tax Preparer, (4) Your Commercial Attorney and (5) Your Financial Planner. They are less expensive in the long run than you can imagine and even a one person Handyman company can afford them. Learn more here...

Word To The Wise:

An old Maxim I like is "Early To Bed, Early To Rise, Know Your Numbers And Advertise". We have something similar Contractors Success M.A.P. in podcasts and webpages that I trust you will gain value from reading and listening too them. If you have questions or are interested in some guidance, please email Sharie@FastEasyAccounting.com or call her 206-361-3950

I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.

We Remove Contractor's Unique Paperwork Frustrations

We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!

That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.

You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!

I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast

This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com

Thinking About Outsourcing Your Contractors Bookkeeping Services?

Click On The Link Below:

www.FastEasyAccounting.com/hs

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.

Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.

Warm Regards,

Randal DeHart | Contractors Accountant

We Remove Contractor's Unique Paperwork Frustrations