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Mark Eastman

The Payment Application is Another Important Tool in the Business BUILDing Toolbox

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This Tool Helps the Construction Companies See Their Cash Flow Ahead of Time

Concerns about cash flow is one of the biggest struggles construction companies and contractors face — and for good reason. These businesses typically lay out large amounts of money for project-related expenses. Waiting to get paid until the job is complete is a sure way for a company to go out of business.

This is especially hard on smaller companies with limited cash on hand when they are working on larger, long-term projects.

An alternative approach is for businesses to be paid when predefined stages or percentages of a project are complete, a model called “progress payments.”

Progress payments benefit all parties involved.

The Payment Application is an Excel spreadsheet that is used for tracking progress payments made on construction projects. A payment application is more than a simple invoice. It includes a schedule of values based on the proposal and the individual items included in the scope of work.

Construction companies aren’t banks and shouldn’t be carrying the cost of larger construction projects until they are finished. Progress payments help companies recover a portion of their costs for the project along the way, thereby maintaining a steady cash flow.

Payment applications can also protect companies in the case of client nonpayment throughout the construction process. At Timber Creek Construction we have a delay condition in our contract that we can stop working on a project if a progress payment is not received promptly. 

In the construction industry, a progress payment is a partial payment often made after the completion of a predefined stage of work — for example, demolition, concrete, framing, roofing or siding. These installments replace single, lump-sum payments at the end of a project or a “half upfront, half at the end” arrangements.

Making payments connected to the completion of a specific stage of work can create some confusion., For instance, does completion of concrete include sidewalks and garage approaches that may not be able to be completed until other things are done? That’s why at Timber Creek Construction we choose to make our payments based on periods of time rather than stages. We then determine how much has been done within the predetermined period of time and invoice accordingly.

Benefits to progress payments are:

  • Stable cash flow – Progress payments provide construction firms and contractors with a steady stream of income, thereby reducing the amount of working capital needed for projects. This makes it easier for companies to cover costs for supplies and labor throughout the project. This minimizes the need to go into debt.
  • Increased motivation – Reaching that next milestone to get that next progress payment is a great motivator in the construction industry. Being paid along the way can also drive productivity, reduce material and labor expenses, and result in higher profits.
  • Minimizing payment problems – Getting paid based on progress establishes a steady expectation of cash flow and when you should expect it. If payments begin coming in late, or not at all, it could be a sign that the client is having financial issues. Delayed payments help flag this early and can prevent the need to take legal action.
  • Opportunity to pause the project – If a customer doesn’t pay their progress payment for work completed, you may decide to pause work until the issue is resolved.

The one drawback to progress payments is like most other business-related activities…it means more paperwork.

Construction companies and contractors need to make sure they are paid. Most don’t have a dedicated financial or accounting department to handle that function. This puts that task on the basic office staff or the contractor himself.

This is where having a Business BUILDing Tool and a system to use it comes in.

Next week we’ll look at the specifics of our Payment Application and how that tool works.

There’s a Good Reason We’ve Been Give Two Ears and One Mouth

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It’s Because Good Communication Takes Twice as Much Listening as Talking

Miscommunication happens too often but doesn’t have to if we weren’t so quick to jump to conclusions.

Our Pastor told a story about visiting a lady in the hospital who had had a stroke and was unable to speak. She kept pointing at something, but he was having trouble understanding. She was getting frustrated and kept pointing. He kept turning around and going to different things trying to figure out what she was pointing at.

This went on for a while until he realized that she was pointing at him…his zipper was down.

Then they both had a good laugh.

Even in the middle of this difficult situation they were able to share a good laugh.

There are more than 7000 different languages around the world. The one word that is most universally understood among all of those different languages is the word “huh?”.

This is what Pastor Lee kept asking the lady in the hospital.

Not asking enough questions and listening, really listening, to the answers is where communication begins to break down. We presume we know what the other person is going to say before they even open their mouth.

I believe this is why God gave us two ears and one mouth. We need to listen twice as much as we talk if we’re going to understand others.

In Acts 2:1-21, Jesus’ followers were all together when a noise like a mighty wind came from heaven. The Holy Spirit took control of everyone, and they began speaking in whatever language the Spirt led them.

There were many different people from different countries in Jerusalem at that time. When they heard this commotion, a crowd began to gather, and they were surprised because they were all hearing everything in their own language.

Communication can be hard, but it doesn’t have to be if we are just willing to listen.

The Holy Spirit can help us communicate better, but we must be open and accept the help. The Holy Spirit will help us to see clearer, understand better, and give us ideas for sharing God’s love (Acts 2:17).

13-year-old Abraham Olagbegi needed a bone marrow transplant due to a rare blood disorder. He decided to use the Make-A Wish gift he received to help others rather than getting a gaming console or taking a trip somewhere. He wanted to use it to help feed the homeless.

Abraham’s Table planned to provide meals once a month for a year to homeless people in Jackson, Mississippi. Abraham’s mom always says, “It’s a blessing to be a blessing.” This was a big undertaking for a 13-year-old but, the Holy Spirit gives us thoughts and ideas that God wants us to do. It’s up to us to do it.

When you come up against a big mountain, you need to remember you have a big God.

Listen to the Holy Spirit. Listen to others. Ask questions. Communicate clearly through your words and your actions.

A Proposed Change Order for a Construction Project is as Important as a Proposal

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If So Many Issues Come from Not Doing Change Orders, Why Are They Not Done?

A Proposed Change Order is another very important tool that should be in the business toolbox of every construction company. However, it’s probably used less than almost any other business tool. Its lack of use causes as many, or even more, problems than any other tool.

If it’s that important, why is it not used?

We’ve discussed multiple times the reasons for doing Proposals for construction projects and the importance of communication with construction customers.

Proposed Change Orders are just as important.

If Proposed Change Orders are so important why are the done less?

The main reason for paperwork not being done is time. Time is the one thing that there is a limited amount of. There is more of everything else in construction. We can look for and find more help, job materials, money, etc. But, no matter how hard we look we can never get more time.

This time limitation is the main reason paperwork isn’t done. It’s easy to see the direct connection between production and revenue. Paperwork…not so much.

Doing a proposal or estimate is done before any construction agreement is made.  This has a direct connection to the cash flow and increases time being spent on them. If we don’t have construction work to do, we don’t get paid.

After the project is started though, our focus shifts to the construction of the project. From that point forward paperwork takes a back seat on the priority bus.

Like any tool…it costs more money if you don’t use it.

I was speaking with my mechanic earlier this week and he told me a story about a contractor that he knew, that took a $15,000 hit on a job because he neglected to provide the customer with a Change Order.

The contractor and customer agreed on the work that was to be done and a price of $20,000. While the contractor was working on the project, the customer asked for some additional work to be done. The contractor did the extra work.

When finished the contractor gave the customer a invoice for $35,000. The customer was furious and would not pay the additional $15,000.

Not communicating with the customer before the work was done cost the contractor $15,000.

Spending the time to do a Proposed Change Order would have been worth it.

A Proposed Change Order is like a proposal…it lets the customer know what to expect. It gives both the contractor and the customer clear expectations before costing either.

In my forty plus years in construction I have witnessed this story happen too many times.

In addition to the time needed to do a Proposed Change Order another reason for them not being done is simply not having a process in place for doing them.

This is common in the construction industry. Most people running construction companies were taught construction…not paperwork.

It doesn’t have to be this way.

That’s why we’re in the process filling up a Business BUILDing Toolbox with ready to use templates, fill-in-the-blank worksheets, instructions, and examples of:

  • Proposals
  • Contracts
  • Change Orders
  • Payment Applications
  • Profit Comparisons
  • Job Cost
  • Six-week Cash Flow
  • Savings Account Transfers
  • Etc.

This Business BUILDing Toolbox (future link) is just one part of the 5-step Business BUILDing Plan.

Fixing problems such as neglecting to do a proposed change order as discussed above comes down to –

  • Being aware that there are problems
  • Understanding those problems
  • Getting the Information about and Instruction of systems and processes needed to solve those problems
  • Learning to use those systems and processes
  • Delivery of your DREAM business

Check back to find out when the tools are in the toolbox and ready to go.

We Are Left Sitting on the Edge of Our Seats with a Good Cliffhanger

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We’re Eager to Know What’s Going to Happen Next

A cliffhanger is a plot used in fiction which features a precarious or difficult dilemma or a shocking revelation at the end of an episode. A cliffhanger is hoped to incentivize the audience to return to see how the characters resolve the dilemma.

Cliffhangers became prominent with the serial publication of narrative fiction, pioneered by Charles Dickens. Printed episodically in magazines, Dickens’s cliffhangers triggered desperation in his readers. This was evident in the anticipation of those waiting for the next installment of Dickens’ The Old Curiosity Shop. A story about a thirteen-year-old orphan named Nell Trent, living with her grandfather.

In 1841, Dickens fans rioted on the dock of New York Harbor, as they waited for a British ship carrying the next installment, screaming, “Is little Nell dead?”

Dickens’ installment format and cliffhangers would typically culminate at a point in the plot that created reader anticipation and thus reader demand.

The popularity of Dickens’s serial publications saw the cliffhanger become a staple part of the “sensation serials” by the 1860s. The DNA of Dickens’s busy, episodic storytelling, delivered in installments and rife with cliffhangers and diversions, is traceable in everything.

The apostles were living out a cliffhanger in Act 1:6-14. They ask Jesus. “Are You now going to give Israel its own king again?”

He answered them, “You don’t need to know the time of those events that only the Father controls.” After Jesus had said this and while they were watching, He was taken up into a cloud.

Can you say cliffhanger?

They were wanting to know what was going to happen next, and Jesus left them standing there wondering. Then two men dressed in white clothes were suddenly standing there beside them. They asked, “Why are standing here looking up into the sky? Jesus has been taken to heaven. He will come back the same way.”

You know the apostles were sitting on the edge of their seats wondering when, how, why.

Cliffhangers in fictional stories can be exciting and stressful, but ultimately, we know that they are just a story. The writer of the story can keep us guessing and anticipating what’s going to happen next. The author can take us where they want us to go.

In our real-life story, cliffhanger levels of excitement and stress are ramped up. There are real trials and consequences in this story. This unknown can be pretty scary. We just want to know what’s going to happen next and that everything is going to be alright.

Sure, our life stories have drama and cliffhangers, but the Author will write a good story if we just let Him. In verse 8 Jesus tells the apostles, “The Holy Spirt will come upon you and give you power.”

We have the power to choose who writes our story. Let God write your story.

If we will let God write our stories, then the cliffhangers become a driving force to move forward to the next episode of our lives.

Enjoy your cliffhanger!

How to Bring a Construction Proposal to a Conclusion with a Contract

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Putting A Period at The End of the Construction Proposal

The discussion of “Building a Better Proposal” began with the problems that arise from poor communication. We talked about this being the responsibility of the contractor and some of the reasons this is a problem.

Previously we laid out the “Blueprint for Building a Better Proposal” going over the different parts of the system, explaining the system, gathering of information, writing a scope of work, putting a price to the project and finally how to put all of the pieces together into a proposal ready to present to the customer.

Once you have a signed Proposal, you should conclude with a Contract.

The Contract completes the Proposal process and covers things beyond construction. Things like funding, additional documents, property boundaries, time within which the project will be started, and terms and conditions.

  • Construction Funds – This isn’t something that is relevant to every project but will be to some. If it is, the information would be included in this section of the contract.
  • Description of the Work – A complete and full Scope of Work could be included here but not needed if the customer has been presented a Proposal. If so then a brief description of the project can be inserted and a reference to the specific Proposal and any other additional documentation, i.e. blueprints, drawings, spec sheets, governing body documents, etc.
  • Property Lines – This is another category that isn’t relevant to every project but certainly can be. If working inside of city limits, normally there are set back requirements and easements, this makes it critical to know where the property boundaries are or to have a licensed surveyor make this determination.
  • Payment – Like the description of work above, this should be in the Proposal. If no Proposal was given to the customer, then this should be specified here. If a Proposal was given, repeat it again here.
  • Time for the Completion of Work – The duration of the work from start to finish is typically expressed in the Proposal. Due to the varying number of Proposals prepared and presented to customers, there’s no way of knowing what order they will be signed and returned. With the Proposal being signed and returned prior to the preparation of the Contract, the start date of the project can be determined and specified here.
  • Terms and Conditions – An in-depth explanation of specifications, descriptions, expectations, insurance, warranty, media permissions, etc. These will be specific to your company, type of work, and location.

I would recommend that you have a legal expert or attorney review your Proposal and Contract templates as well as any other agreement document to make sure they are sufficient and protect you and your customer.

We’ve gone through the process of meeting with a customer all the way to getting a signed Contract. Now it’s time to do the “construction” part of the project.

Just because you have a signed Proposal and Contract, don’t think the communication is done.

In most construction projects changes occur. These changes need to be treated like separate sub-projects of the original project with Change Orders. This is a topic of discussion for a different day…one that we’ll have in the future.

If you know anyone in a construction trade or related industry that you think would benefit from Business BUILDing Tools or learning about those tools and how to use them, feel free to share this Weekly Solution with them. For additional articles about other construction business topics go to the Solution Building website.

Getting a Backhanded Compliment Can Be a Good Thing

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It’s Important to Know Who You’re Talking to and Speak Their Language

This past Sunday was Mother’s Day. Too often we take our mothers for granted. We are used to them taking care of us and loving us even with all our flaws.

A mother was working late one day, and her husband and daughter decided they would clean the kitchen for her before she got home. They washed the dishes and put them away. They cleaned the table and the counter. They swept and mopped the floor. They had the kitchen looking great and were excited.

When the mom got home, she came in through the kitchen. She took off her coat and hung it over the back of a chair and sat her purse on the table. She went into the living room and sat down and turned on the TV. The husband and daughter stood there waiting for a compliment.

After a while they asked her what she thought about them cleaning the kitchen. She looked at them and said, “It’s a thankless job, isn’t it?”

Don’t forget to tell your mom thank you.

A backhanded compliment can be a little confusing.

A woman was greeted after singing a solo by a gentleman who said, “You sang that song well, and you didn’t sing too long.”

Or what about the man who was always getting reprimanded at work getting a comment from his supervisor, “You’re stinking less at this job all the time.”

We all speak such different languages. It’s hard to know how to take a backhanded compliment.

In Acts 17:16-31 Paul gave the Athenians a backhanded compliment. These people were searching for God but were trying to make Him fit their wants and desires, so Paul spoke to them in a language that they understood.

While Paul was waiting in Athens, he was upset to see all the idols in the city. 17 He went to the synagogue to speak to the Jews and to anyone who worshiped with them. Day after day he also spoke to everyone he met in the market. 18 Some of them were Epicureans and some were Stoics, and they started arguing with him.

People were asking, “What is this know-it-all trying to say?”

Some even said, “Paul must be preaching about foreign gods! That’s what he means when he talks about Jesus and about people rising from death.”

19 They brought Paul before a council called the Areopagus, and said, “Tell us what your new teaching is all about. 20 We have heard you say some strange things, and we want to know what you mean.”

21 More than anything else the people of Athens and the foreigners living there loved to hear and to talk about anything new. 22 So Paul stood up in front of the council and said:

People of Athens, I see that you are very religious.

 23 As I was going through your city and looking at the things you worship, I found an altar with the words, “To an Unknown God.” You worship this God, but you don’t really know him. So, I want to tell you about him. 24 This God made the world and everything in it. He is Lord of heaven and earth, and he doesn’t live in temples built by human hands. 25 He doesn’t need help from anyone. He gives life, breath, and everything else to all people. 26 From one person God made all nations who live on earth, and he decided when and where every nation would be.

Some of the people who heard Paul made changes and put their faith in God. Just like the people in Athens, if we listen to backhanded compliments, discern the good from them, make the right choices and apply those changes…we’ll be better for it.

Too often we try to make God what we want Him to be. This isn’t how it works. God is God and we were made in His image…not the other way around.

Remember that we all speak different languages, and it’s important to find out the language someone else is speaking before we start talking. We also need to be careful how we complement each other.

Oh…Thank you Mom for all you’ve done and the love you’ve given me throughout my life.

Having the Right Tool and Knowing How to Use It Can Make Things Much Better

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The Thing to Remember About Tools Is…They’re Only Good if You Use Them

Over the last couple of weeks, we have discussed why it’s critical to save money for those big irregular expenses and unexpected emergencies. Next, we began the process needed to start building a “Rainy Day” fund by determining how much and for what. The Savings Transfer Sheet is like any other tool, it doesn’t do you any good if you don’t use it.

As is the case with everything that’s worth doing, starting is the hard part. Saving money is no different. It’s like digging a hole.

What if there’s an underground water line leaking in your backyard. You can see that spot where the grass is green in an otherwise brown lawn. The water bill is more than ever before and getting bigger each month. That doesn’t matter, the prospect of getting your shovel out of the tool shed and digging is more than you can bear to think about. So, you put it off and pretend that it’s not a problem.

The green spot in the yard keeps getting bigger and greener. The water bill keeps getting bigger too. You decide to cover the spot in the back yard with an above ground swimming pool. That took care of it…no more green spot. You know what they say. Out of sight out of mind.

Then one day you get a water bill that is so big you decide that you’ve got to do something. So, you drain the pool, get a shovel, and start digging. Then before you know it, you’ve uncovered the pipe, found the leak, made the repair, and filled the hole.

That wasn’t near as bad as you thought it was going to be. Once again, you are aware that this is one of those times when the overwhelming dread was way worse than the actual process. The next water bill is back where it used to be, and you wonder why you weren’t more proactive.

A shovel is a simple tool that’s easy to use. It can fix a problem before it gets too big, but only if you use it. If you don’t, the outcome can be devastating.

The same thing is true about the Savings Transfer Sheet. If you’ll take the time to get it out of the toolbox, spend some time learning how to use it, and use it regularly, it will make a significant difference to stop your financial leaks.

Wouldn’t you like to have your money filling up the pool rather than leak out of it.

If you would like to learn more about the Savings Account Transfer sheet, schedule a free 30-minute construction company consultation.

How to Build A “Rainy Day” Fund for Your Business

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One of the Tools You Should Have in Your Business BUILDing Toolbox

Last week I wrote about the importance of having savings, both individually and in business, and the high percentage of people who don’t. The tendency to spend everything you have is a problem when the unexpected happens. I’m not saying that after you pay the bills every dollar should be saved.

What I’m talking about is having money ready for big, planned purchases or unexpected emergencies.

This way you can use your own money and don’t have to pay someone else to use theirs.

Last week I told you about the tool I use for this in my business, the Savings Transfer Sheet. This spreadsheet is easy to use and makes the process simple. What it doesn’t do is force you to save. If only there was just a way to hook peoples’ deposit tickets up to electricity so that they would get a shock when depositing money without saving.

The biggest problem with saving money is…not having a plan to do so. It can be overwhelming trying to figure out how much should be saved when depositing your revenue. One of the things that makes it hard is not having consistent amounts of income. If every week you deposited the same exact amount, you could decide once and always put aside a set amount for savings.

It’s rare in business that every job or every customer pays you the same amount every time you do business with them. There are some businesses like lawn mowing, hair cutting, pet boarding, etc. that a preset recurring price has been established, even so the number of recurrences each day or week is going to vary.

The purpose of this spreadsheet is to provide a simple accurate way to know how much to save every time.

As with most things, the most difficult part is the initial set up. This part requires some research, thought and time. Trust me…the time and effort will be worth it in the end.

  • First – Look back through your financial records of the last several years. The more research you do the more accurate your understanding will be of your financial history. Even if you’ve only been in business for a short time, it will be a good place to start. This will let you see areas of unexpected expenses as well as dollar amounts.
  • Second – Determine what things or areas that need to be saved for. Some examples of what these could be are:
  • Repairing and/or replacing equipment
  • Additional equipment or upgrades
  • Repairing or replacing vehicles
  • Large building repairs or maintenance items (HVAC, new roof, etc.)
  • Building or facility upgrades, expansions, or purchases
  • Taxes (income, property, sales, etc.)
  • Irregular payments (bi-monthly, quarterly, annually, etc.)
  • Retained earnings (money for emergencies…because they are going to happen)
  • Third – Take the dollar amounts for each area that you have determined to be above or outside your normal operating costs. Figure out the percentage of your net revenue each one is. This gives you a place to start when setting up the “Savings Transfer Sheet” for the first time.

Building a “Rainy Day” savings is critical to the survival of your business.

It’s a cornerstone in the foundation of your business allowing it to weather the storms of life.

Next week we will dig deeper into the “Savings Transfer Sheet” and see how the information we’ve gathered fits into it.

Why It’s Always Important to Have an Empty Chair Available

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Because It’s a Good Way to Prevent Loneliness

It’s been said that the church is like a football huddle. Church likes to stay in the huddle, we like the safety, we like to look good in our uniforms, we don’t like to get dirty. Football is not the huddle though, if you never break the huddle, if you never run the plays, you can never win the game.

Too often as a church, what we bring to the world is judgement rather than service, love, and the message of Christ.

We get a good example of what the church is supposed to be like in Act 2:42-47. The apostles of Christ would meet regularly and share their gifts and talent with each other. They would fellowship together, invite others and grow.

According to the Surgeon General we are currently experiencing an epidemic of loneliness. Isn’t this an understatement?

This trend has been happening for a while and was amped up with the separation that many people experienced during COVID. In this morning’s Briefing, Dr. Albert Mohler shared the importance of community and how and why it’s deteriorating.

Dr. Mohler shares many of the factors that have led to this crisis of loneliness. Christians need to understand this is predictable. What we’re looking at here is something that the government can’t solve.

As Christians we should be heartbroken about this problem.

Loneliness tells us about the human cost of disconnectedness from other human beings.

We have been made to be a part of a community. As Christians, we should be committed to seek the welfare of other human beings. We should care about people. The Surgeon General’s report should have the nation saying, “Oh, that’s not a good thing, that there’s so much loneliness.”

Christians should look at this and recognize this is a matter of concern. We would understand that as God made us as relational creatures, we cannot be healthy without some level of sustainable relationships.

Scripture tells us that man was not meant to live alone.

We know that social media and the internet have only amped up this separation and loneliness. It’s much easier to be disrespectful and say hurtful things to people when you aren’t looking them in the face.

As the church we should be opening our doors and arms to those who are lonely.

God invites everyone to the party.

Daniel Gill, a teacher in Montclair, New Jersey, shared a story of the importance of inviting everyone to the party during a lesson for Martin Luther King Dr. Day.

At 9 years old, he and his friend Archie went to a birthday party. The mother of the birthday boy opened the door and said, “I could go in, but that Archie couldn’t because there were no more chairs.” Gill said, no problem, I’ll sit on the floor. And she said to me, no, I didn’t understand. There are no more chairs,”

It was the 1950’s, and Archie was black.

Stunned, they left the party.

That’s why in his classroom Gill always keeps an empty chair, as a reminder that anyone who comes to his class filled with anticipation and eager to learn is welcome and invited to the party.

We need community and connection and that’s why we should always have an empty chair in our churches, our businesses, our homes, and our lives.

Everyone should be invited to God’s party.

Why It’s Critical to Save Money in Business and How to Do It

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Setting Up a “Rainy Day Fund” for Your Business Can Help Keep It Afloat

We’ve just passed a painful time of the year…INCOME TAX SEASON. This can be stressful but doesn’t have to be if you’re prepared.

It’s common for people to spend everything they earn and not save anything for future investments or emergencies. For the most part, as a society here in America we have become comfortable.

We have forgotten how important it is to save money.

There have been times throughout history when things weren’t good financially, i.e. the Great Depression of the 1930’s. Enough time has passed, that for most people it’s become a distant memory. If you have ever talked with someone who went through the depression or a similar experience, saving money became more than something that needed to be done…it was the difference between life and death.

As reported in Zippia 42% of Americans have less than $1000 in savings and 10% don’t have any. Businesses aren’t doing any better, and it’s every bit as important.

Part of a good business financial plan includes saving money for those irregular and unexpected expenses.

Just like in our personal lives, in business we get busy with the process of daily living. We work hard at the normal operation of the business and neglect to intentionally plan for those “rainy days”. Things like equipment maintenance and repairs, building maintenance and repairs, quarterly and annual taxes, irregular payments, etc.

When I started doing construction work I learned the skill of building from some of the best craftsmen. Later when I went into business for myself, I thought I knew everything that I needed to be successful. The problem is that while they taught me how to build a solid, well-built structure, I was never taught how to build a business.

Early on in my business career I learned one of those business building lessons the hard way…the importance of saving money.

I was working hard to keep construction moving forward. The material figured and ordered and suppliers paid. Subcontractors and employees organized, having what they needed and paid. Things were going well, and there was even some money left over. So naturally, I spent it.  Then it happened…the accountant showed me how good my year was by telling me how much I owed in taxes.

How was I going to pay them? I didn’t have that kind of money. What was I going to do? I was going to have to make payments. Just so you know, tuition to the “School of Hard Knocks” is expensive.

That’s why over the last 40 years of learning lessons the hard way I designed and developed a system to help me build a successful business. One of those systems was a way to separate and save money that would be needed later.

The question then was how am I going to do it?

Several years ago, my wife and I found out about Dave Ramsey and his Financial Peace Program. It’s a program that teaches you to, “Live like no one else, so that later you can live like no one else.” The very first lesson he teaches is “Super Saving”. It’s a common-sense approach to saving money and the reasons it is important to do so. This was great for my personal finances but wasn’t an exact fit for the business.

So, using the basic principles of Dave’s plan for personal savings, I began working on a way to do the same thing in my business. The Savings Transfer Sheet is the tool I came up with and is one of the tools in the Business BUILDing Toolbox.

The “Savings Transfer Sheet” is a simple spreadsheet that with a few simple entries will give you the dollar amount that needs to be separated from gross revenue and saved. That money can then be put into a separate checking account, savings account, or turned into cash and put in a safe.

This keeps saved money from accidentally being spent on the wrong thing.

After talking with a lot of different business owners I realized that every business could use a “tool” like this. That’s why we’re currently working on putting business tools in the Business BUILDing Toolbox that will make the Savings Account Transfer tool available to construction companies.

You can find out more about the Savings Account Transfer sheet or other tools in the Business BUILDing Toolbox by setting up a free 30 minute construction company consultation.