ForConstructionPros.com

It’s that time again — time to finish up the books for 2008 in order to prepare both statements and tax returns. Under current market conditions, it behooves you to get this done as quickly as possible so you have a complete set of professional-looking statements to use when you meet with your bankers. Having them completed by February 15 will show you have your act together, which is a plus when dealing with financial institutions. It also helps when you have tax refunds coming; the sooner you file, the sooner you get the funds.

I hope those of you who participated in our webinar last month on the credit situation (available for viewing at www.ForConstructionPros.com/webcast) took home some ideas on how to obtain financing and cut operating expenses. Our webinar speakers were all industry experts who can help with the tough decisions you need to make. (If you enjoyed this webinar, or have additional topics to suggest, let Becky Schultz know at becky.schultz@cygnusb2b.com.)

As our speakers suggested, getting year-end financials completed, along with a 24-month business plan and cash flow analysis, will go a long way to help you run the business and support assumptions in the business plan.

When is it time to “fall out of love”?

Speaking of tough decisions, a reader sent me an e-mail asking how to decide whether to stay “in love” with his equipment or covert it to cash in a soft market. As you all know, this is a tough question with many alternatives available depending on your current situation, your expected situation and your ability to obtain additional financing should you need it.

If you own the equipment and it is fully paid off, the decision is somewhat easier to make. If you get reasonable time utilization out of a unit, it pays to just keep it unless the maintenance is killing you.