My neighbor is a doctor. A surgeon. He literally saves lives daily. But when it comes to fixing things around the house, he can’t drive a nail. He didn’t know how to start a caulk gun.
Mind-boggling. But, if you think about it, it’s not that surprising. Sometimes people who have been very well-trained in and spent years refining their trade aren’t that good at everything they do. Contractors are no different. Many of you can pull a tree, finish an acre of concrete, or trench some cable in a way that is a work of art, but when it comes to money, well, you can’t drive a nail.
Just like the doctor, most of you are competent and smart enough to be great at managing daily money activities if you practiced it and had time for it. But that’s the thing, having the time for it. You go from job to job chasing revenue and building a business, but when it comes to getting a handle around your receivables and payables, making sure your sales tax is addressed, or that your financial statements will be accurate enough for a bank to give you money, the results are not great.
The “I’ll figure it out” or “I can do this myself” attitude is simultaneously what’s great about contractors and not-so-great about contractors. Building a multi-million dollar trade company requires partnerships, and there is no way around it. You must trust experts to help you do the things you’re not great at. They do it faster, at a lower overall cost, and most importantly, better. You wouldn’t try to fix your broken arm or pull your wisdom teeth, but astonishingly, 68% of contractors have no outside help managing the daily financial aspects of the business.
From a recent survey:
“I ran my money for 13 years. We were growing and I always covered my expenses and supported my family and those of my employees. But, man, it was stressful, and I never really felt good about it. Three years ago, we outsourced all bookkeeping and tax efforts to someone who understood us. I complained about it for 6 months because I thought it was too expensive. Today, we are three times larger, make more, and borrow easier and I have almost no stress around daily financial management. It’s paid for itself 20x over.”
We’d love to hear about your successes and struggles in managing the daily financial operations of your company. We have a Facebook group (which some of you may have come from to read this) that we invite you to join. No sales pitches, just building a community of contractors where we can all discuss and share financial best practices, tips, and tools to help you become a multi-million dollar contractor.
Check out the group here and if you have any questions about exploring affordable outsourced financial management services, give us a call. Sadoff can help.