In today’s episode, Jonathan Goldhill talks to Josh Patrick about working with clients focusing on blue collar, sub-contracting work. Josh specializes in helping entrepreneurs with a predominantly trades background, who have spent years mastering how they do work, but have little in the way of actually running a business. Josh shares his insights on setting up business plans, managing cash flow, and applying scrum management to construction projects.
Jonathan: "All this underscores the need for entrepreneurs to have some financial literacy. There's not enough financial literacy. It doesn't have to be complicated. It doesn't mean you need to take an accounting class but you need to understand what your people are doing so you can understand maybe where they're messing up. You need to be able to understand a balance sheet, a cash flow, a P&L statement. Maybe read them, interpret them, and make some informed decisions or predictions around the future based on what's happening to your margins."
Josh: "Those who stay in business for a really long time are not risk-takers. They are actually risk-averse and manage risk really well. And if I have a business doing half a million dollars and I take a 125,000 dollar job on, that's taking a big risk. I would tell that owner you should probably pass on that job. Or, if you really want to do that job, make sure you bid it for hours and materials not project cost."
Josh: "If you're going to be premium-priced, you better be premium service to go along with it."
Josh: "I don't think our employees care what others make. They care what they make and they look at what they make to see if they believe it's fair. Once they believe it's fair, they really don't care all that much what other folks make, including the owner. "
To connect with Josh, check out the links below:
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