My builder friends,
I know y’all are getting a lot of stuff about Coronavirus…emails, ideas, tips, and the like.
This one’s a bit different…I want to cut to the chase with some actionable ideas.
Two things, first:
- Check out our latest episode with Treacy Duerfeldt talking about some of his risk management strategies for this time.
- My opinion: It’s easy to fall into fear or panic right now, or “catastrophizing” over what MIGHT happen, especially if your wasting your time in front of the TV or in social media. I have a better proposal…roll up your sleeves and get to work.
All right, on to my list of things I’m personally doing in my business right now, and I encourage y’all to consider the same:
1. Maximize cash right now. Collect any and all outstanding invoices and change orders, and take advantage of your full length of payment terms with vendors. We are putting everything we can on credit cards, which adds another 30-60 days to your cash cycle without costing you anything as long as you pay the balance in full at the due date.
On a similar note, with rates so low and the Fed trying to keep the economy afloat, it’s probably a pretty good time to refi properties to get more cash in the bank or at least lower your rates.
2. Strengthen client relationships. Now is the time to take care of your clients and provide them solid guidance. We had one client say they may have to stop the project midstream if they lose their job. My response was, “Well, you have financing in place to finish the project. You’re gonna suffer much more damage if you stop the project midstream and are on the hook for a half-built house than if you use your financing that’s already in place to simply finish and sell it.”
On that note, if any clients do have to stop their projects, all the more reason to follow number two above…make sure you are making draws for progress and collecting change orders as soon as possible, so you aren’t upside down if God forbid the project must come to a halt.
3. Narrow your focus…essential activities only right now. What activities are actually bringing cash in the door or tangibly reducing expenses.
4. Execute your core biz. This is the cousin of number three…keep going with your core operations. This is how you put food on the table. Even in tough times the best players usually survive. Focus on habits and systems that will make a difference.
5. What kind of leader are you? Anyone can lead in good times. The bad times are what separate us and what define us. Every good story contains a struggle, an unforeseen development, something to overcome. And everyone of us is the author of our own stories. How will yours look?
Take care of your team and your vendors. They are looking to you right now. Communicate more than normal, help calm them, give them assurance you will be there for them. We’ll get through this!
Be well, head down, focus forward, and get to work,
P.S. If you need help, I want to offer any help I can on a first-come basis. Lemme know and I’ll hop on the phone with you for 15 minutes to help assess any current action steps you may need to shore up your businesses or take advantage of opportunities.
If you’d like some further help beyond that, we can discuss you becoming one of our private clients. This would only be for builders that need a little extra assistance.
Just reply to this email if you’re interested. There is no cost for the 15 minute call…happy to help if I can.