Latest News

Money tight? Running a building firm can be really rewarding, but not always financially! You may have good months and bad months, good years and bad years. But the trick that successful building businesses have worked out – is finding the sweet spot that means the business does well consistently. In our Building Firm Foundations hub, we’ve brought together a chunk of advice on the subject of finances and avoiding money being tight.

A Practical Guide to improving your financial situation

But how do you make decent money all of the time?  Here are six key areas to focus on:

1. Efficient Project Management

Effective project management is the backbone of any successful building firm. Utilising project management software like HBXL’s new BuildProjex cloud software can make a world of difference. It helps with scheduling, resource allocation, communication, data storage… I could go on. It cleverly allows for real-time updates and centralised information, reducing delays and misunderstandings. By keeping everyone on the same page, you minimise wasted time and resources, which directly impacts your bottom line. Why wouldn’t you?

2. Accurate Estimations

Accurate cost estimates are essential for maintaining profitability. Investing in reliable estimating software such as HBXL’s award-winning EstimatorXpress can significantly improve your accuracy. It gives you all the costs – the materials (the current prices!), plant, labour and so on. This precision helps stop you from under-quoting, which can erode your profits, and over-quoting, which can drive away potential clients.

3. Getting paid on time

Cash flow management is key (and probably why I’ve written more on this than the others!). You’ve probably heard the saying ‘turnover is vanity, profit is sanity, and cash flow is reality’. The problem is real. You need to know at all times what money is going out and what is coming in. You’re up against substantial upfront costs, likely multiple income streams, and long project durations. You need to meet your financial obligations, like paying your suppliers, employees and sub-contractors. Keep everyone happy and you can hope for more favourable credit arrangements. Delays in paying could delay your job, and the knock on could be a disaster.

EstimatorXpress will help keep you on the straight and narrow, as will ContractsXpert. Between the two of them they’ll give you timings for stage payments and the contractual paperwork so the customer knows from the outset when they’ve got to pay and how much. It also avoids ‘mission creep’ – you know how customers like to say ‘could you just…’!

By understanding your cash position, you can plan for the future more easily. That could be by avoiding overcommitting resources, and being realistic about what you can achieve. And more optimistically, purchase new equipment, take on staff, take on larger projects. Get it right and you can seize profitable opportunities with your eyes wide open, without taking any risks.

Free Cash flow forecast template >>

4. Impressing customers

Incorporating 3D modelling into your business could be the key to your success. PlansXpress creates automatic 3D models from the drawings you create from scratch, or trace from existing plans. Imagine providing prospective customers with a set of images depicting their dream extension or new build? Think of the pics you could put on your website or Facebook or Instagram account. You’ll soon become the preferred building firm in your area!

5. Open to advice and new knowledge

If you’ve been in the building game for a good few years, you probably feel like you’re not the ideal candidate for back-to-school type learning. And who’d want that? May be you’re new to the industry and would welcome some advice from a few pros. Either way, I’d like to suggest one of our Skills Bootcamps, assuming you’re in the right location in the UK (we’re negotiating more regions as I write).

We offer government-funded Skills Bootcamps for Estimating (and there’s a deep dive into finances – which is important for every business). CAD, perfect if the idea of 3D models for customers interested you in the paragraph above. And finally, Business Management, which doesn’t really need further introduction. I think every building company should attend this one!

The courses are over a 16-week period. You need to find two hours twice a week, and make time for some homework. There are no exams just an amazing insight into running a building firm successfully. And get this – they’re either entirely free or 90% funded by the government. Find out more about the HBXL Skills Bootcamps here.

6. Willingness to consider change

This is a whole separate article – and we have many on the subject here on the HBXL website. But I think I’ll leave you with the link to this broadcast between our MD, Joanna and Simon, mentor to building firms, and Better Business Group director. Here he explains that if you really want to up your game, you need to rethink your business – or do something else…

Watch: Move your business upmarket >>

Using digital tools: A Game Changer when money is tight

As I’ve said above, the importance of incorporating software into your day-to-day business admin, cannot be overstated. Estimating software, project management tools, drawing software are pivotal in enhancing efficiency and accuracy. EstimatorXpress, PlansXpress and BuildProjex, Design & Estimate Kit, Take-off & Estimate Kit, and ContractsXpert – they all help in reducing errors, improving communication, winning profitable work and saving time. By adopting these tools, you’re putting your business on firm foundations and giving yourself a significant competitive advantage.

Final Thoughts

Remember, the construction industry is constantly evolving, and staying updated with the latest trends and technologies is crucial. What worked three years/five years ago may not be enough in the current climate. Investing in the right tools and trying to stay ahead of the competition will help your business adapt and thrive in an ever-changing market.

Try our software tools for free – get your instant download here. Or call for a chat on 0117 916 7898 and let’s help you go from tricky finances to a secure future.