#1 Financial Systems
At the end of the day, money makes the world go round and as a builder, you often have to manage poor cash flow, countless moving parts, conflicting subcontractor schedules and large overheads simultaneously. This means that if your financial systems aren’t in place early on, financial stress can take a toll on not only your profitability long-term, but your mental health and wellbeing, too.
It’s also worth noting that everyone’s individual affinity or understanding of financial systems differ greatly so if this isn’t a strength area of yours, it’s important to outsource or find the right support so that you can feel confident from a financial perspective. And it’s not just about managing cash flow. Making sure you have accurate reporting systems in place, up to date tax and insurance models and clarity on your compliance obligations is vital.
The fix: Implement monthly financial health checks so you stay on top of your financial literacy—and progress. Keep it as a standing diary date and whether you use this time to reconcile accounts, track cash flow, or upskill your financial knowledge, the effort you put in now will pay off in the long run.