461: Construction Companies Who Fail Have One Thing In Common

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 461, And It's About Construction Companies Who Fail Have One Thing In Common</strong></span></h1> <p><strong><span data-preserver-spaces="true">Every contractor who goes out of business has one thing in common, bad financial reports or none at all.</span></strong></p> <p><span data-preserver-spaces="true">Does this sound familiar? Contractor opens a business because they are so skilled at trade. With a small amount of cash, less than $10,000, a few credit cards with $5,000 available credit, they are off to the races.</span></p> <p><span data-preserver-spaces="true">You tell friends and relatives about your new adventure and get lots of jobs. Of course, you wouldn't take advantage of friends or relatives at meager prices, would you?</span></p> <p><span data-preserver-spaces="true">You open supplier charge accounts credit cards from Home Depot and Lowes. Your working capital increased by $20,000. "Wow, life is excellent! I should have done this a long time ago!"</span></p> <p><span data-preserver-spaces="true">You were earning $25.00 an hour working for someone else. The contractor was charging $50.00 an hour for you. What a ripoff! You charge $30.00 an hour to be fair and undercut your competition.</span></p> <p><span data-preserver-spaces="true">In six months, cash is gone, credit cards over the limit, and suppliers cut you off. What happened? You're an honest person doing good work at a price people can afford, and you're punished for it! Your reality check bounced! Outgo exceeded income.</span></p> <p><span data-preserver-spaces="true">Friends and relatives asked you not to mark up parts over what you paid. Because doing so would be dishonest and unfair. They're on a "Budget"; someone needs to rescue them, so you paid the price.</span></p> <p><span data-preserver-spaces="true">Let's run some numbers. </span></p> <p><span data-preserver-spaces="true">You make $5.00 an hour more than what you are worth as an empl