Half way there 2014

I just read the opening lines to an article talking about us being halfway through the summer. As a mom, with school starting just a few weeks away, summer seems much further along than "half way."  But in the concrete business, we are only half way through the season. For us here in Ohio, the construction season typically starts around April 1st, depending on how Mother Nature treats us, and winds down around December 15th again depending on the weather. So we are just about half way.

So how is your year going? Now is the time, regardless of how busy you are, to take a look at your business and review how the first half of the year has been.  Are you on track to be profitable? What is your plan for the rest of the year to finish with a strong bottom line?  Here are some tips based on how we review our business this time of year that might be helpful.

Review your Profit & Loss Statement:  In the concrete construction business in Ohio, first quarter financials are never pretty. Winters can be a challenge in which to work, and if we do work, it takes longer and with more resources than it would in the summer. So while I look at the P&L for the first half, I also run it for each quarter and compare it to the previous year.  I review each line to see if there are any significant increases or decreases and then ascertain what caused the swings. For us this year, there has been a dramatic increase in fuel costs. While gas prices are high, they are not significantly higher than last year, but we have been working on projects much further away from our shop than usual, so I can justify it. Are there any other significant differences? If so, can you justify them, or is there something you need to investigate. I look at dollar changes, and also percent changes from last year. I look at each line as a percent of sales to see if there are trends over time. Now is the time to make adjustments for the second half of the year to move that bottom line to the black if not already there.

Review your Balance Sheet:  This is one report it took me a while to understand why I needed to review it. However, once I began to understand what it shows me, I found it to be a good tool to see a snapshot of the business. It will show you your bank balances, how much your customers owe you (accounts receivables,) and how much you owe others (liabilities.)  If you are having someone else do your books for you, make sure you request this report often and review it. It gives you a great overview of your business financials.

Sales: Compare your overall sales to the goals you set, or compare your numbers to last year. Are you growing? Are your sales people or estimators hitting their goals? Do you see a trend that you can build upon? Look at who your customers have been. Are they helping you grow your business?  You may find that you need to fire a customer if they are not helping you move forward.  We are also delving into each project type to determine where we are profitable. As our business evolves based on the demands of the market, we need to know where we can make money and where we fall short. It doesn't make sense as a for-profit business to continue to do work where it is not profitable.

Overhead:  Do you understand your overhead, where it comes from and how to manage it?  Your overhead includes any expenses that are not directly related to the project. If you can charge the expense to a job, it is not overhead but a Cost of Goods Sold (COGS.)  If the expense will be there regardless if you are working on a project, like your rent, phone and electric bills, etc.,  it is overhead. Talk to your accountant if you don't understand your overhead versus your job related expenses. George Headley also explains it well here.

Budget and Business Plan: Did you start your year with a budget and plan for your business?  If not, you can make one for the 2nd half of the year based on what you now know from reviewing your financials. And guess what? - a budget and business plan is a living document that will evolve and change just like your business!  They are not set in stone, so don't get too discouraged if your actual numbers don't match your budget. The budget will need to be adjusted from time to time. These plans are like road maps to success. Sometimes you need to alter your course, but at least you have direction to get where you want to go.

In thinking about being half way there, I am also reminded of someone who suggested that when you move into your late 40's, you still have half of your working life to obtain your goals. I have held on to that thought as I fit that category. The thinking was that you start your working career around age 25 to 30 and stop working around 65 or 70.  It was encouraging to me to think that I still have half of my working life to build my dream. I encourage you to dream big and set goals to make them come true. You may be, like me, only half way there.

Now EDGE Certified

After months of researching, making copies, meetings, making copies, completing forms, making copies, and more meetings, Yoder Concrete Construction, LLC is now EDGE Certified.  For some of you, this may mean nothing. For others, it may be a benefit. For us, it is an opportunity for company growth and for furthering our business into new and larger sectors.

EDGE stands for Encouraging Diversity, Growth and Equity Program. In the words of the State of Ohio:  "As its name suggests, the State of Ohio’s EDGE program provides an EDGE to small businesses by Encouraging Diversity, Growth and Equity in public contracting. EDGE is an assistance program for economically and socially disadvantaged business enterprises. The State of Ohio developed the program  because it is committed to making all state contracts, services, benefits and opportunities available  without discriminating on the basis of race, color, religion, sex, national origin, disability, age or  ancestry.The state recognizes the need to encourage, nurture and support the growth of economically  and socially underutilized businesses to foster their development and increase the number of qualified competitors in the marketplace." 

For Yoder Concrete Construction, LLC, it is opening doors for us with businesses and markets that we have only begun to visit. We are excited about the opportunities it may bring to us. Being a small, rural business that is woman owned and operated in the construction field, it can be challenging and intimidating at times. (I would love to tell you a story from just last night, but it will take me a little off topic, so I'll stay focused.)

What does it mean for you? If you are a general contractor or public/state funded entity that has a goal to utilize state of Ohio suppliers who qualify under the EDGE program, we may be of benefit to you. We not only help you meet your goals, but more importantly, we offer quality concrete construction and service that will assist you in completing your construction project. 

In either case, we would love to assist you in your next construction project where concrete is needed. Visit our website at yoderconcrete.com or you are welcome to email me at robertayoder@yoderconcrete.com.  How may we help you?

Contractor Alert: First impressions count

Want a professional image for your business? What you say and do can make a huge difference in how potential customers perceive you.

I had lunch with a business colleague last week, and she shared about an experience she had with her neighbor's concrete contractor. She was in her house with her young children minding her own business. The neighbor was having some concrete work done in his backyard (not by Yoder Concrete Construction, by the way,) and the workers were loud with very colorful language in this quiet residential neighborhood. There was only so much this lady could take. She went out and confronted the person in charge asking them to watch their language because there were young children within earshot, and it was not appreciated.

If that wasn't bad enough, not long after, she heard water running from her outside spigot.  She went out, and sure enough, this contractor had hooked up his hose to her house, without permission, because they needed to wash their tools. For some reason, they were unable to reach the customer's water source. She was livid, but being a business owner herself and wanting to maintain relationships, she allowed them to use her water. However, she suggested they ask in advance next time.

Needless to say, she said she would never hire this contractor regardless of their quality or price because of the way they handled themselves on this one project. You could be the best contractor on the planet, but your image may tell consumers something different. There is a simple lesson to be learned here: think about what you say and who might overhear it, and ask permission before trespassing on someone else's property. Be professional at all times. You just never know who is watching. It could be your next customer (or not.)

Thank God it's Monday!

As Yoder Concrete Construction, LLC moves through its 19th year in business, we continue to look at who we are as a business and how we can improve what we do. In each business meeting we have this year, it seems our biggest need right now is on improving our business procedures and the business we are in called "serving people." Yes, we place concrete, and do a great job of it, but if we didn't have people as customers and as employees, we wouldn't be in business. We appreciate each and every person with which we come in contact. Do they know that?

The struggle is how to show that appreciation. It is too easy to push forward to the next bid, the next project, paying that stack of invoices... How often do we all get caught up in running our business without stopping to say "Thank you! You are appreciated!" I think business owners as a whole do a better job at thanking their customers for their business, whether it is through a thank you card or just verbalizing the words after a sale, but do we do a good job at thanking out employees for the work that they do?

This past winter I started reading a book entitled, Thank God It's Monday, by Roxanne Emmerich. It was recommended to me by Kip at Peachtree Books & Company in Bellefontaine, OH. The book cover touts "How to create a workplace you and your customers love." It is an easy read, but as business started picking up, I put the book aside and moved on to more important things...What?! More important things?...What is more important that our employees and our customers? I have pulled this book back out and started reading again.

We want to make Yoder Concrete Construction, LLC, a place where people enjoy coming to work, and yes, even on Mondays. How do we do it? That is what I am seeking. With the economy being down and our employment level being down from what it was a few years ago, now is the time to review and make changes without upsetting too many apple carts. But that is also part of the problem. If you don't make changes, you will always be the same. We don't want to be the same. We want to improve.

Do you have any time weathered suggestions on how you show appreciation to customer and especially employees that are truly appreciated? What has your employer done for you that made you feel appreciated on an ongoing basis? I'd love to hear from you.