Running the Business
By Garry Bartecki
Don’t Start Celebrating Yet
Recovery is still to come, so stay focused
and avoid unnecessary risk.
I bet we’re all watching the daily
stock market reports and won-
dering what we’re missing, since
the market keeps trending upward
without much support that I can see.
Business is slowly recovering, but
credit is tight, consumer spending
is off substantially and commodity
prices are bouncing around enough
to keep us all uncomfortable.
I asked an investment counselor
I know who manages a large sum of
money what’s going on out there.
He tells me it’s a matter of people
not having anyplace else to put their
money, so they put it into the mar-
ket and push up the prices — the old
demand and supply theory. Since
investors get minimum returns from
savings and other fixed income invest-
ments, and real estate offers little in
returns at the moment, investors find
the movement of the market attrac-
tive until other investment alterna-
tives offer better returns. Makes sense.
The point of bringing up the
market and talk of recovery is that
in the construction sector, those
types of discussions still have no to not jeopardize cash flow with any • You need to have absolute con- industry, an equipment dealer or a
legs to back them up. The con- fixed or semi-fixed obligations, or get trol of job costs. rental company. They are all looking
struction industry is clearly in bad involved in any jobs where you are • You need to have the knowledge for customers themselves and should
shape, and may remain so until going to find it tough to get paid. to adjust during the job. be willing to help. In return, they will
the commercial real estate markets • You have to review 100% of every expect some loyalty when you have
shake out and housing rebounds Steps to focus on dollar you are spending. In most business you can throw their way.
to a degree where it actually means Following are some steps you cases, you can get it cheaper or get The editorial staff of this publica-
something. That could be two or should concentrate on to make more for your investment. tion and I are also willing to be a part
three years from now. your business more competitive • You have to be able to “sell” your of that team. We’re currently work-
So don’t get all excited about a and profitable: industry knowledge and your ability ing to make useful input available to
recovery and take risks that will put • You need to have a very good to control your work product. you — stay tuned for further develop-
you further on the road to financial understanding of your business • You need to take advantage of ments. And if you have ideas about
ruin. If you’ve made it this far, you’re accounting. what industry partners can provide. what you want to see or hear about,
doing something right. Cash is still • You need to have the ability to If you find you are unable to do or what you would like us to make
king and you have to control yourself properly budget a job. any of the above, you should seek avail