Money matters

We’ve all heard a lot about the current building ‘boom’, and it’s great to hear plenty of good news stories from our customers who are making the most of it.

The businesses that do really well, however, and which will be best equipped to survive any downturns, are those with sound management procedures in place.

Sadly, even in boom times, businesses go bust – and the close nature of working relationships within the industry means that they can take others with them. In this issue, we’re highlighting some best-practice measures to help protect yourself against that danger.

No matter how disciplined you are with money, you can’t control how others manage theirs. Given others’ actions can have a significant effect on your business, it’s important to have the correct debt collection measures in place.

Particularly for SMEs, who make up a large portion of the construction industry, debt can have a disastrous effect on cashflow and, ultimately, your business’ survival. In the construction industry, it takes on average 18 months to receive settlement of an unsecured debt.

This month, our legal contributor makes a great case for getting everything in writing – and ensuring its accuracy – up front. This may seem over-the-top, but it can make all the difference. Read more on here.

For those situations when good risk reduction measures don’t quite cut it, and the company owing you money goes into liquidation, there are insurance options that can buffer the blow. Builtin details the different products available to protect your business on here.

Bad debts aren’t the only reason good companies fail. Sometimes it is simply a result of the business growing too quickly and the owners taking on too much – potentially outside their area of expertise. On pages 20-21, Crowe Horwath suggests that having an advisory board on hand could help guide your business to greater success.

In other news, we are pleased to announce the opening of our newest purpose-built PlaceMakers store in Takanini, ideally located to meet the demands of South Auckland’s burgeoning construction industry. Make sure to stop in and take a look if you’re in the area.

Gary Woodhouse
General Manager Operations & Marketing