Wise Up Wednesday: Protect Your Business
The Only Certainty…
Before you think I am taking sides and making some kind of political statement please think again because nothing could be further from the truth. So, please just read what I have to say and take appropriate action to protect your business.
As Laura Kuenssberg (BBC Political Editor) has recently written about the turmoil that is British politics; “The only certainty is that nothing will stay the same”.
It makes a change from the only certainty being “death and taxes” I suppose, but where does it get us and more importantly, what does it mean for you as a Specialist Contractor in the construction and engineering industries?
The Only Certainties That I Can See
The fact that the government of this great country of ours is in such a mess is something that very few of us can do anything about. What we have to focus our minds on is what is happening, or about to happen in construction, and what can we do to protect our businesses from the effects of circumstances over which you have no control whatsoever. They are;
• Commercial construction activity fell at a steep and accelerated pace during August (IHS Markit economist Tim Moore)
• Material prices continue to increase
• Labour shortages are driving price hikes and ransom payments
• Several major Contractors have issued profit warnings so who can you trust
• The VAT reverse charge for construction will hit your cash flow*
What You Can Do To Protect Your Business
• increase your effective marketing and sales activity
• don’t just work for any new Contractor check thoroughly
• don’t ignore the commercial and contractual risks
• read and understand the contract – is it onerous?
• do what the contract says when you should do it
• records, records, records
• smarten up your buying where you can
• look for alternative sources of labour (not easy – but it is doable)
• don’t ignore under valuation and slow payment – take action
• get advice sooner rather than later about problems especially payment and the VAT reverse charge
Ignoring All This Is Not An Option – You Need To Protect Your Business
It’s too late to wish you had read, understood and applied the advice when work has dried up, your margins are through the floor, and the Contractor is not paying you…
99% of contractual problems end up with you not getting paid, and not getting paid has cost literally thousands of construction Subbies their business in the last 12 months!
And 90% of the time you could have protected your profits and your business by the simple expedient of thinking objectively about your business and taking positive action in the right areas.
We are already helping lots of Specialist Contractors just like you to take action on all of the above, protect their business and recover hundreds of thousands of pounds on their behalf.
Remember it’s all too easy to ignore this and put your business at risk. Please don’t do that. Give us a call on 01773 712116, or email me today.
Alternatively get your tin hat on and wait for the perfect storm to hit!