AggieArchitect04 said:

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This forum is for bewbs and poop jokes only.

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Ha! I had a feeling I would get some responses like this....

Anchorhold said:

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Howdy Billy. How is your video rental company doing?

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i would love to get an unaltered copy of Billy's Video.

I'd make so many copies of it and sh-t all over it and degrade it in the worst way possible multiple times a year. I'd let multiple animals sh-t all over it. I'd light it on fire time and time again.

That truly was a satanic piece of accounting.

Mat Lanticus said:

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Anchorhold said:

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Howdy Billy. How is your video rental company doing?

https://i.postimg.cc/28bDhY50/Billys-Video.jpg

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i would love to get an unaltered copy of Billy's Video.

I'd make so many copies of it and sh-t all over it and degrade it in the worst way possible multiple times a year. I'd let multiple animals sh-t all over it. I'd light it on fire time and time again.

That truly was a satanic piece of accounting.

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That is a truly odd comment. Thanks?

malone76 said:

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Mat Lanticus said:

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Anchorhold said:

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Howdy Billy. How is your video rental company doing?

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i would love to get an unaltered copy of Billy's Video.

I'd make so many copies of it and sh-t all over it and degrade it in the worst way possible multiple times a year. I'd let multiple animals sh-t all over it. I'd light it on fire time and time again.

That truly was a satanic piece of accounting.

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That is a truly odd comment. Thanks?

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I had no idea what he was talking about.

You learn something new everyday. I had no idea that Post was an accountant.

Mat Lanticus said:

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Anchorhold said:

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Howdy Billy. How is your video rental company doing?

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i would love to get an unaltered copy of Billy's Video.

I'd make so many copies of it and sh-t all over it and degrade it in the worst way possible multiple times a year. I'd let multiple animals sh-t all over it. I'd light it on fire time and time again.

That truly was a satanic piece of accounting.

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You clearly didn't go to 4.0 and Go

Accounting class was for crossword puzzles. 4.0 and Go was for Billy

NormanEH said:

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Mat Lanticus said:

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Anchorhold said:

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Howdy Billy. How is your video rental company doing?

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i would love to get an unaltered copy of Billy's Video.

I'd make so many copies of it and sh-t all over it and degrade it in the worst way possible multiple times a year. I'd let multiple animals sh-t all over it. I'd light it on fire time and time again.

That truly was a satanic piece of accounting.

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You clearly didn't go to 4.0 and Go

Accounting class was for crossword puzzles. 4.0 and Go was for Billy

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nope I went to A+ w/ Ali.

New video's up if anyone's interested same kind of thing, breaking down financial stuff that trips up a lot of contractor and trade business owners. Shorter one this time, about 6 minutes.

Contractors: Do You Actually Know If Your Last Job Made You Money?

https://img.youtube.com/vi/2tYnFSokS_I/maxresdefault.jpg

Solid and easy to understand information Billy. Thank you for putting these out. I'm in the roofing distribution industry and many of my customers need this information.

MIAGD said:

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Solid and easy to understand information Billy. Thank you for putting these out. I'm in the roofing distribution industry and many of my customers need this information.

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Appreciate that, man. Roofing distribution is an interesting angle I'd guess you're seeing the exact same blind spots on the contractor side that you're describing, just from across the table. Curious what you're running into most with your customers is it more the "profitable on paper but broke" thing, or something else entirely on the job costing side?

It's both but mostly the slow payment process from insurance and supplements in addition to managing cash flow. Just because a roof is sold for $30k doesn't mean that it is an automatic $10k drop to the bottom line.

MIAGD said:

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It's both but mostly the slow payment process from insurance and supplements in addition to managing cash flow. Just because a roof is sold for $30k doesn't mean that it is an automatic $10k drop to the bottom line.

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That's a good breakdown, the insurance/supplement timing you're describing is basically the roofing version of what I talk about with GCs and their retainage. Same root problem: money's earned but the cash hasn't landed yet, and it's easy to feel "profitable" on the invoice while your bank account tells a different story. That $30k roof, $10k margin point is exactly the kind of thing that trips people up until someone walks them through it.

AggieArchitect04 said:

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This forum is for bewbs and poop jokes only.

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Can't remember last time bewbs were here. The general board officially died years ago

Hill08 said:

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AggieArchitect04 said:

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This forum is for bewbs and poop jokes only.

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Can't remember last time bewbs were here. The general board officially died years ago

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I kind of get that feeling as well....

Hill08 said:

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AggieArchitect04 said:

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This forum is for bewbs and poop jokes only.

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Can't remember last time bewbs were here. The general board officially died years ago

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I think of it more like moving from our "All My Rowdy Friends Are Coming Over Tonight" era to our "All My Rowdy Friends Have Settled Down" era.

Nice video! I don't do a lot of work in your industry but it's interesting how many of the challenges you pointed out in the first video exist in industries like CPG, services, saas etc. sometimes the simple cash flow forecast is more valuable than the 25 tab financial model!

Husky Boy Jr. said:

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Nice video! I don't do a lot of work in your industry but it's interesting how many of the challenges you pointed out in the first video exist in industries like CPG, services, saas etc. sometimes the simple cash flow forecast is more valuable than the 25 tab financial model!

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Appreciate that. You're right, this stuff isn't unique to contractors, it's just easy to spot in this industry because the swings are so big, job to job. And yeah, completely agree on the simple forecast beating the 25-tab model. Most people don't need more complexity, they need to actually look at the thing regularly.

For subcontractors and self-perform work, it's all about managing work and spend rates and minimizing rework and punch list. Are you completing work volumes within the budgeted hours? Are you getting equipment and rentals off site on time? If you're not at the beginning, you're probably going to finish in the hole. If you have to keep redoing work or can't get off the job, you're going to see really bad profit erosion.

For GC's it is managing what you control. Make sure your subs finish on time and get the job closed out ASAP. Didn't let it drag out. Monitor your burn rate and protect through the end of the job to check against your budget. Monitor for burn rate changes weekly so you aren't caught unaware by cost increases. All of your jobs should be forecasting costs, owner billings, and profit recognition, and you should be monitoring those forecasts.

Beyond that, know your contract and fee structure and plan on how to maximize it.

On the back of house side, plan your overhead. Use budgets and keep costs under control. Don't be afraid to spend money to make money, but make sure you spend with a well defined purpose and plan.

This is a great breakdown, appreciate you taking the time to lay it out like that. The burn rate monitoring point is the one I'd underline hardest weekly, not monthly, since by the time a monthly number shows the problem, you're already a month into a bad trend on that job. I see that gap constantly, owners checking job costs at closeout instead of catching the drift while there's still time to do something about it.
Your subcontractor point about work volumes vs. budgeted hours is basically the same root issue I dig into in this video, just from a different angle. I'm looking at pricing math, you're looking at execution pace, but they're both versions of the same thing: the number on the estimate and the number in reality drifting apart quietly, with nobody catching it until it's already baked in.
The overhead line stuck with me too. "Spend with a well defined purpose and plan" is doing a lot of work in one sentence. A lot of the owners I work with aren't overspending recklessly, they're just spending without a plan tying it back to what the business can actually support.

I've added a few new videos since I posted the first one. The link to the newest one is now in the first post of this thread if anyone is interested.

Now make a hoboken squat cobbler video.