Why Trade Contractors Fail and How to Prevent It (eBook)

PART ONE: Do I Run This Business Or Does It Run Me?

Do I run this business or does it run me? Pg 10 Who am I (the Business Doctor), and what makes me an expert in helping trade contractors? Pg 11 Warning signs that your trade contracting business is in trouble Pg 12 Poor or inadequate financial systems Pg 13-15 Missing or insufficient financial planning Cash flow tight; projections inaccurate Receivables turning slowly and building Vendors demanding cash on delivery or faster payments with reduced terms Customers stretching out average receivables from 30 to 45, 60, or 90+ days Past due bills piling up Profits trending down Lines of credit at their limit; banks wont renew Inadequate accounting controls Pg 15 No formal accounting system in use No, or inadequate/incomplete business plan No, or inadequate/incomplete, marketing and sales plan Job estimates unreliable Pg 15 Cant get bonded Bidding jobs too low Project management that doesnt manage Pg 15-17 Supervisors not handling the job well Change orders not implemented Projects falling behind schedule Lawsuits Backlog increasing Lead times unrealistic Communication problems Pg 17 Disputes between contractor manager, company owner, and customers Poor communications from field to company management

PART TWO: Getting Your Financial House in Order Pg 18

Financial planning Pg 19 Cash flow Pg 26 Estimating and Tracking Pg 32 Breakeven analysis Pg 39 Budgeting and forecasting Pg 42 Profit and expense control Pg 44 Account receivables and collections Pg 48 What you need to know about accounting Pg 59

PART THREE: Assuring the Business Survives and Flourishes: Major Responsibilities at the Top of the Company Pg 67

Responsibilities at the Top of the Company Pg 67 The owners responsibilities Pg 68 The board of directors responsibilities Pg 70 The presidents responsibilities Pg 71 Strategic planning Pg 76 Business planning Pg 87 Succession planning Pg 95 Mission statement Pg 98 Twelve management rules to live by Pg 102

PART FOUR: Running a High Energy and Profitable Operation Pg 106

Site superintendent and project management Pg 107 Bidding jobs Pg 113 The job plan Pg 117 Daily work progress report Pg 122 Corrective and preventive action plans Pg 125 Implementing change orders Pg 128 Inventory control Pg 130 Quality and customer complaints Pg 137 Purchasing Pg 141 Loss control Pg 144

PART FIVE: Methods for Improving Employee Performance Pg 147

Hiring and selection process Pg 148 Employee compensation program Pg 155 Progressive discipline Pg 159 Performance evaluations Pg 167

PART SIX: Marketing Trade Contractor Services Pg 172

Marketing: the forgotten function Pg 174 Hiring and training salespeople Pg 181 Cold calling Pg 184 Handling price objections Pg 187

APPENDIX
About the author, his services, and how to reach him Pg 193 Examples of types of trade contractors and subcontractors
Pg 194

Genre: Business
Title: Why Trade Contractors Fail and How to Prevent It
Author: Dr. James (Jim) McCain

One of the main reasons contracting businesses fail is because the principals know their business how to contract but are lacking the basic skills of actually running their business. This is true of many operations, whether you are an attorney, therapist, doctor or grocery owner. Your profession does not prepare you for running a company. If you are a contractor, Dr. McCain has created a book with a wealth of experience and knowledge to assist you. Dr. McCain obviously knows his business. Sometimes a business guru has great general knowledge, but little practical knowledge of a specific business sector. I have contracted before and, based on my experience, he has covered the bases. His book is well laid out and well written with very good practical information. His first chapter, Part One Do I Run This Business Or Does It Run Me? - is a critical first step. It talks about insufficient financial planning, cash flow, receivables, vendor demands and customers wanting to extend you for months. Do you have proper accounting controls? Do you really know where your business stands? This is the hard stuff and he has you ask the hard questions. But McCain points you in the right direction as well. Part Two deals with getting your financial house in order. And there is much more, including employee performance, sales, marketing, and profitability. Even if youre a seasoned contractor there is still more to learn, and this book could be invaluable to a small contractor just starting out. I recommend The Trade Contractors Book for either of you and all those in between.

Reviewed by reviewer Gregory J. Saunders, Allbooks Review,
www.allbookreviews.com
Publisher: Real Time Publishing
ISBN: 978-1-84961-113-8
Price: $24.95
Available: June 23, 2011

Press Release For Immediate Release Contact: Media Announcement June 29, 2011 518-383-3337, Mccain97@aol.com

How to do business book for trade contractors announced REXFORD, NEW YORK New York businessman Dr. James McCain today announced the release of his new book, Why Trade Contractors Fail and How to Prevent It: A Handbook of Financial, Operational and Marketing Procedures to Help Trade Contractors Succeed. The book offers a rare perspective in simple language as to how contractors can apply proven business techniques to their business affairs.

Trade contractors excel at mastery of their specific crafts. The carpenter, electrician, plumber and many other U.S. contractors are among the worlds finest at knowing the technical aspects of their craft. But their knowledge of business systems is often deficient. Too many of them fail when it comes to understanding how to manage cash, use marketing techniques to generate new business, minimize their inventories, and the dozens of other business practices that spell the difference between success and failure. The Business Doctors book addresses those issues and in this regard is quite unique. It attacks specific issues that trade contractors face. Most books addressing this market are too academic and excessively focused on theory. This book is hands-on practical, the way blue collar contractors understand it and like it. The book is available at www.bizdrsolution.com.

Business Works CEO, Dr. James McCain a 30-year veteran with over 450 satisfied business clients provides general business consulting. He helps companies solve business problems and specializes in working with small and medium-size businesses, especially building trade contractors.