Having Money Is More Than a Roll of the Dice
Over the past three weeks, I’ve shared how Gene struggled with money problems in his construction business. The first week was about not getting paid and how that can lead to not having money needed to cover operating expenses. Then there was the issue of the truck transmission needing to be replaced and not having money for it. Last week, the problems got bigger and more expensive: he didn’t have the money to pay his income taxes.
We’ve all been in situations where we needed money that we didn’t have.
This includes things like:
- Repairing and/or replacing equipment
- Additional equipment or upgrades
- Repairing or replacing vehicles
- Large building repairs or maintenance items (HVAC, new roof, etc.)
- Building or facility upgrades, expansions, or purchases
- Irregular payments (monthly, quarterly, annually, etc.)
- Retained earnings (money set aside for emergencies…because they are going to happen)
- Taxes (income, property, sales, employment, etc.)
- Education and learning
It can be hard to save money for these kinds of things. Heck, it’s hard just keeping up with the bills. How are you supposed to save any money?
Saving money is a proactive way of preparing for the expenses that are going to come. It’s much better for both you and your business to be out in front of the problems rather than waiting until they happen.
Taking control of your money is up to you.
At Timber Creek Construction, I experienced some of the same problems on that list. That’s why I developed a tool to help me save money and be better prepared. It’s a simple and accurate way to know how much of my revenue to save and do it regularly and consistently.
The Savings Transfer tool is an Excel spreadsheet that, with a few simple entries, will give you the dollar amount that needs to be separated from gross revenue and saved. That saved money can then be put into a separate checking account, savings account, or even withdrawn as cash and put in a safe.
With construction income typically coming in unpredictable amounts at irregular intervals, it can be difficult to know how much should be saved when depositing revenue. If you deposited the same amount every week, you could decide once and save the same amount weekly.
But construction income doesn’t work that way.
The Savings Transfer tool uses percentages of revenue. Some things, like taxes, are determined by government agencies, and those percentages will be set accordingly. Other categories are optional and can be adjusted on what makes sense for your business.
The hardest part of this process is the research, determining how much to save and what to save for. It requires looking back through your financial records over the past several years. The more research you do, the more accurate your understanding of your financial history will be. This research helps you identify patterns like unexpected expenses and actual dollar amounts. And the good news is , these figures can always be adjusted as your business evolves.
Even if you’ve only been in business for a short time—or are just getting started—you need a place to begin.
We’ve all been in situations like Gene’s, wondering how we’re going to pay for that unexpected expense.
You don’t have to roll the dice and hope everything works out.
That’s why we’re offering a free Introduction to the Savings Transfer tool on April 15th at 10:30 AM (CT).
I know it’s hard to find time for things like this. But is it worth it if it helps keep your business from going bankrupt?
Because that next unexpected expense? It’s coming. Will you be ready for it?
If you’re tired of guessing and coming up short, let us help you take control and start saving for those unexpected expenses.
When you attend, you’ll be entered into a drawing for one of two prizes:
- One for a customized Savings Transfer Tool implementation ($997 value)
- One for a full year subscription to the Business Building Toolbox ($297 value)
If you would like to take the financial pulse of your business, you can take this free 5-Minute Financial Health Review and see where your business is today.