As our businesses grow, most of us
recognize the necessity and the
challenge of making the transition
from tradesperson to business person.
Industry studies show a significant failure
rate among small contractors within
the first five years of operation. If we
expect to survive, we need to develop
and sharpen some basic business tools.
Chief among these tools, in my opinion,
is job-costing, a straightforward
accounting procedure that tells you
how your estimates stack up against
your actual job costs. Some may disagree,
pointing to marketing, sales,
staffing, and production as key components
of a successful contracting business.
However, even the best marketing
and sales, backed up by the best production
staff, will flop if the numbers
aren't working. The