Working ON your business
I am sure every business owner has heard the expression “You should be working ON your business rather...
As one of New Zealand’s largest suppliers of professional financial services to businesses in the construction industry, Baker Tilly Staples Rodway is in a unique position to understand how to manage the potential pitfalls of a construction boom.
Our experience working with a leading Waikato residential home builder provides some reassurance that it is possible to remain on track and beneﬁt from the booming construction industry.
The owners of our client’s business are its key to success. They value establishing long term relationships with suppliers, employees and customers. Their culture is inclusive and team-oriented, with the customer at the centre of everything they do.
This customer-centric model includes providing exceptional value, creating a risk-free build experience and making the process as simple as possible.
There are risks of over-extending and entering a greater number or larger scale of projects than a business can sustain. Problems can arise from misunderstanding cash flow cycles, or not being able to up-scale activities quickly enough because of the supply constraints on the industry. The risks are signiﬁcant, whether they apply to your own business or to your customers and suppliers.
Key ways to address these concerns and minimise risk include:
Our client recognised the importance of managing risk and follows these steps wherever possible. Every job goes through an estimator, terms of trade are well documented, every variation is approved in writing and every job has a budget and projected margin.
Behind the scenes we worked with them reviewing:
We recommend all businesses in the building trade find experienced advisors who can provide a similar oversight
Success in the building industry isn’t guaranteed, despite the current excess demand within the construction sector. More than ever it requires a disciplined approach across all aspects of a business.
If you are in the building sector and experiencing the current pressures of a booming industry, ask yourself these questions:
If you cannot answer yes to these questions it may be time to take a step back, review your business and speak to your Baker Tilly Staples Rodway Advisor.
DISCLAIMER No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.