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So we went through all of the steps of producing a good business plan for 2010, now what?  First let's review what we have covered so far.
If we have taken time to calculate each of the numbers and analyze each step we have a very realistic look at our 2010 revenue, gross margin, and net profit items.  When I say analyze, I mean dig deep.  Too many times, this process takes a lot of time and we create multiple line spreadsheets that become cumbersome to the point where we don't look at the numbers in depth.  Make sure you don't get caught in this trap, you should spend at least as much time reviewing the data as you spend plugging in the data.  I always find it to be a good rule of thumb to spend twice as much time analyzing as entering.  Make sure you don't have garbage in-garbage out.

Now What?
So you have a bunch of numbers that is just a forecast, don't stop there.  When you finish an estimate for a project and get awarded that project, do you just file away the estimate and go build the job?  Hopefully not!  You should be building the project to the estimate and looking at each opportunity to improve it.  The estimate becomes a road map to guide you and to review your performance, but is not there to limit you.  Just like that project estimate, your plan for 2010 should guide you and you should review it against actual results every month.

You should also be using it as a guide to improve your business.  Look at each of the line items you have projected and see where you can stretch your goals.  Can you cut some overhead costs?  Can you get some more revenue from your Flow Work?  Do certain projects present cost saving or revenue enhancing opportunities?  My recommendation is to dig deep with your team with the assumptions and set the goals.  If you engage your team and they know the plan, they will go out and win.  Make sure they have buy-in to the plan, spend as much time as needed.

I hope you enjoyed the series, there is so much more to building a perfect system of projecting work which I did not cover.  I do hope that I engaged you into thought so that your business will be highly successful in 2010!  As always, if you have any questions please email me at anytime and visit Construction Monkey to see the low cost tools that can assist you in running your subcontracting business.

About the Author

Craig Pierce

Craig Pierce has been working in the construction industry for the past 25 years helping subcontractors master their trade. Currently he is President of Atalanta Enterprises which provides consulting services to contractors And software solutions through ConstructionMonkey.com.