At Cotney Construction Law, we know that in the construction industry there is power in finance. Our law firm wants our construction clientele to have success in every aspect of their business. Thatâ€™s why we offer a variety of legal services that bolster the business of construction professionals. If you need assistance with any legal service, please contact an Orlando construction attorney today.
In this four-part article, we are covering many critical aspects of finance in the construction sector. In the first, second, and third sections, we discussed everything from analyzing spending patterns to calculating overhead costs to offering tips for developing a favorable partnership with banks. In this section, we will conclude our series by offering some practical advice to contractors pertaining to managing their finances and growing their business. We will also focus on why itâ€™s beneficial to seek the counsel of an Orlando construction lawyer to assist you with many of the legal tasks for your business.
Remember the Financial Fundamentals
Although there are many ways to improve your companyâ€™s bottom line, a successful business begins with increasing profitability and reducing debt. Although this principle is elementary, many construction companies fail because they overlook their expenses or do not have a system in place to closely analyze their profit margin compared to their spending habits. Tracking your expenses (both capital and discretionary), analyzing your profit margin (monthly, quarterly, and annually), and forecasting the return for the year are all three simplified ways of staying out of financial trouble.
Profitability Is Essential
All businesses require the need to increase profitability. With working capital, contractors will be more attractive to banks and lenders which leads to securing bids on projects and being more selective about the projects you desire to take on. This leads to working with more profitable clients that pay promptly and extend this working capital. As your working capital and equity increase, this develops a successful construction enterprise. With hard work and the right management techniques, it really can be this easy.
Consult With Experienced Professionals in Construction
At Cotney Construction Law, we are devoted to construction professionals and the industry. Ideally, we want our clients to acquire more and more projects into their backlog and develop long-term sustainability in a highly competitive industry. This can only be accomplished with financial stability as well. An Orlando construction attorney can assist you by reviewing and negotiating your contracts, ensuring that all the legal agreements protect your financial interests, preparing lien and bond documents at fixed prices, filing a secured claim on your behalf in a bankruptcy case, and navigating you through the bid process.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.