The early stages of an economic recovery can be the most perilous for contractors, who can easily overextend themselves. Contractors best positioned to thrive are those who have taken the lessons of the recession to heart.
Surviving the recession doesn’t necessarily mean you’ll survive the recovery. Hiring too soon or taking on jobs beyond your capabilities can be tempting in the rush to get back to work. But caution and diligence will win out in the long run.
Barnes Dennig Director Jay Rammes, CPA, recently contributed to an article on strategies to intelligently manage expansion:
“Be wary of the very large job,” says Jay Rammes, CPA and director with Cincinnati-based Barnes Dennig. “Volume has been low for a while, and the large job may be very tempting, but remember that bigger is not necessarily better. Large jobs that you don’t have experience with can lead to logistical management issues and quickly get out of control, leading to large losses.”
By the same token, taking on a job of any size outside the company’s comfort zone is risky.
“Be diligent to stay in the market and niches in which you have been successful in the past,” Rammes advises.
Click here to read the full article, which was produced by our colleagues in PKF North America’s ProfitCrew, Inc., our group of experienced construction accountants.
For further discussion, save the date for our Annual Contractors Seminar on Feb.17, 2011, featuring Michael Kanaby of FMI, the nation’s largest provider of management consulting and investment banking to the worldwide construction industry. More information will be sent soon.