Retentions – How to Handle

cash flow

I attended Geoff Hardy’s builder breakfast recently on the topic of retentions. Consensus was, they are a good thing to avoid (retentions, not the breakfasts), but in many commercial situations you can’t avoid them. Apart from having to wait months to earn your profit in the job in some case many sub-contractors are left with retentions unpaid when the main contractor goes under. This is caused by the retentions not being held in trust and are used to pay others (which is illegal).

Despite directors and senior management breaking the law in this matter, MBIE seem reluctant to bring criminal charges against head contractors. Perhaps because intent is difficult to prove. So what can you do as a sub-contractor to protect your self? Read on….

AC75-yacht

Controlling a fast growing business.

cash flow

Team New Zealand has recently launched their AC75 rocket ship, Te Aihe. It looks like something designed by an Italian super car manufacturer and will probably have the power to match. They anticipate reaching speeds of around 50 knots when up and planing on it’s high-tech foils, which is mind blowing. The only problem is at that kind of speed, things happen real fast and there is limited room for error. If things go wrong, they will go wrong quickly and probably spectacularly.

The same principles apply in business. The faster your business is growing and trading, the less room for error there is as things can go sideways very quickly. This article will help you manage a fast growing business better.

Cash. The lifeblood of your business

cash flow

Effective management of cash-flow is a key issue for growing organisations. One of the most common downfalls of growing businesses is unexpectedly high running costs. What is important is not just the size of operating costs, but the cash-flows around it.

In order to stay in business, it’s important to have the fundamentals right. Managing the cash-flow of your business is a critical fundamental. Cash is literally the lifeblood of the business.

Learn to Love Budgeting

cash flow, Owner, The numbers

Let’s face it.  Most tradies would rather be forced to watch replays of marathon chess matches than put time into creating a budget for their business.  I can understand their reluctance, but I would also like to show them the error of their thinking. Creating a budget for your business can be one of the…