Construction Finance 101: Tips for Small Business Owners
We were pleased to get Glenn Amerson, President, and CEO of FGC, Inc and Brandon Hurd, President and CEO of Hurd Construction a featured quote in BlueVine’s recent article, Construction Finance 101: Tips for Small Business Owners.
Glenn Amerson, FGC, Inc.
#6 Use a Separate Account for Each Job
Glenn Amerson, president of FGC, Inc., a Florida-based general contractor, says using separate checking accounts helps him stay on top of his finances. “When you have one bank account with all of your jobs’ payables and profits coming in and out, overspending happens,” says Amerson. “Each project needs to have a separate checking account, so you’re not mixing and matching money.”
Separating the finances for each job helps him allocate the money from a progress payment to the subcontractors, overhead, and profit for that job. You could create a similar system on paper while keeping your money in a single account. Either way, Amerson says, “the key is to make sure you have enough money in the pot for payables.”
Brandon Hurd, HURD Construction
# 1Create a Plan Before You Start
Planning is important for any small business. It is critical for a small business owners in the construction industry. There are simply so many moving parts in construction that you need to map out a strategy before getting started. And each of those moving parts can entail major expenses if there’s any type of unexpected development that causes a delay or setback.
“Proper pre-construction planning is arguably the most critical project phase any owner can undertake,” says Brandon Hurd, managing director at Hurd Construction Management, a general contractor and construction management company. “Unqualified schedules, scopes, specifications, and particularly budgets are recipes for legal and financial disasters.”
“A solid footing and foundation is necessary for any project to endure the project lifecycle and series of changes likely to occur whether by owner request, construction codes, or other local regulatory requirements.”
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