This article was originally published in March, 2012, and was updated in April, 2017.
We’re already one month past the annual spring equinox, and the summer solstice is less than 2 months away. Combine the warmer weather with an overall construction business climate that seems to be heating up, and you’ve got the perfect recipe for construction business owners to take on more business and grow their companies.
But as business picks up, we must caution you: are you financially prepared to grow?
A few things to keep in mind about growing your construction business:
- Growth eats cash, and the construction business is already cash-intensive
- Subcontractors are 3x more likely to fail in a growing economy
- Almost all businesses, including construction, will need to borrow money from time-to-time. Do you know how much you can borrow, i.e., what your “borrowing base” is?