By Published On: August 1, 20192.4 min readCategories: ContractorsTags: , , , , , ,

If you think the soul reason for all your problems in your company are due to money, or lack thereof, you are simply not looking at the big picture.

There are several different areas of an organization (a company) that determine how much money it makes as well as a couple of areas that manage it. Earned income and the correct management of it will give you prosperity and wealth.

So, how do you go about getting clients? Do you wait for the phone to ring? Do you do advertising, promoting marketing or PR (public relations)? And yes, these are all different actions, not all the same thing, as most people believe. Which one of these does your company do? None? That in itself is the reason there is never enough money.

Does your company deliver the products and services you offer exactly and timely? If you consistently deliver what you promise you will never have a problem getting more clients or getting paid from them. If you don’t you’ll simply loose the ones you have, and you will definitely not see any new ones. Good news travels fast but bad news spreads even faster.

When your company receives income what do you do with it? Pay the bills, put some aside for a rainy day, buy a new piece of equipment? Truth is, if you are not doing all of those things with your income, you are not managing your money properly.

Do you charge enough? Have you looked at your competition? What do they charge for the same service your company delivers? There is a definite formula to work out so you charge the right amount to enable your company to keep going and growing.

Do you maintain your facilities and equipment? If not, your working too hard at trying to save money by making it a nightmare to be able to get anything done. The truck breaks down, flat tires on the trailer, the pump won’t start on the jobsite and that damn generator blew up. Not maintaining your “stuff” costs about 3 times as much in emergency repairs, 5 times as much as lost production time and turns good employees into disgruntled ones. And that cost is immeasurable due to the chaos it creates, driving the company morale into the toilet.

What can you do to improve the amount of money the company makes? Have a look around based on what you’ve read here. Take one thing and clean it up and put a workable system in place to handle that area.

Then do the next one.

And the next one.

And so on.

You’ll begin to see and understand ALL of the actions it takes to make and have enough money. You’ll see how the structure of the organizations has to flow, one action to the next.

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about Joel Anderson

Joel Anderson is the founder of Nuts and Bolts Contracting, LLC, and the company’s primary consultant.

The definitive guide for building your contracting empire.