Last week I was at an investment conference in San Francisco, and much of the conversation centered on the economy in the year to come.Some experts said recession, others said slowdown.Such cheery discussion!

Since we don’t have a crystal ball to know which of those not-so-rosy situations might occur, it is important for you business owners in construction related fields out there to take steps to avoid getting caught in a financial crunch.

“The recent trend of slower growth is not expected to be reversed any time soon,” says Chris Isidore of CNNMoney.com in Recession Clouds Darken 2007 O...Read More

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Dear Suzanna: I’ve owned a successful contracting firm for ten years.While I understand business finance, I’m not always confident about my personal investments and am thinking about hiring a financial advisor.What are the most important things to consider?

--From “J.P. in California”

Dear J.P.:

Trying to figure out what to pay for financial advice can be a Catch 22.If you pay too much, how do you know?On the other hand, if you pay too little and don’t get the right advice, you could end up losing a lot more in the long run.

Going with the low cost provider for services involving your money isn’t always the right answer, but getting the right value for these services can make a big difference to your bottom line. Here are four critical factors for you to consider as yo...Read More

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Recently while helping the owner of a trucking company set up a retirement plan for his business, I was reminded that time pressures are the biggest reality in a business owner’s or employee’s day.With the phone ringing and clients waiting, how do you find and make time to think about and actually set up retirement vehicles?

If you’ve been contemplating setting up a retirement plan for your business but have been procrastinating, there is no best time, so just getting it done is my professional advice.

A Simple Plan

The CEO was starting a SIMPLE IRA for one of his companies.Selecting the most appropriate plan for his business and picking the right investments had been done in advance, so all we had to do was enroll the employees.Sensitive to his work flow schedule, I suggested arriving at ...Read More

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Recently, I quoted my beloved Grandma Dorothy, who told us not to put all our eggs in one basket – but, unfortunately, Grandma did not specify exactly how many or what kind of baskets we need.That column discussed the benefits of reducing your investment risk around through asset allocation, but how do you know how much, what and where you should invest?

You wouldn’t just build a house or other structure without a blueprint, and similarly, you should have an overall plan for your investment mix.An asset allocation is just that – a plan of action to help you systematically go through the process of constructing a sound portfolio.

Before even picking individual investments or mutual funds, there are 3 key questions you should ask yourself to help you determine your asset allocation.

3 Key Questions:

1. What

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Dear Suzanna: I’m a 70 year old CEO of a successful 2^nd generation family construction business, and my family wants me to retire.My son wants to take it over and is offering to buy me out just like I bought out my dad. He’s a smart kid and he’s been involved in the company for over fifteen years, but I have mixed feelings about his readiness.I’d like to work until the day I die, but he wants to be the boss. My wife says we should take the money and run.Any advice?

-Bury Me in My Hard Hat

Dear Hard Hat:

Is this really a financial issue? Statistics show that only 35% of family owned businesses make a successful transition to the next generation, and one of the main reasons is that the leader didn’t select or train a successor early enough or effectively enoug...Read More

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Is attracting and keeping quality employees one of your biggest challenges as a business owner or manager?As I talk to business owners, they repeatedly tell me recruiting and retaining employees is critical, yet many think they can’t afford to offer a key benefit -- a retirement plan.

According to a survey conducted by the Employee Benefits Research Institute among companies with 25-99 workers, participation in retirement plans drops to 36%. In the smallest companies, with fewer than 25 workers, participation is dismally low – just 15%.

If you, like many construction companies, are competing for employees, you may pay a bigger price for not offering a retirement plan.

“…The construction industry needs skilled craft professionals more than ever,”says Dave Meyer, 2007 National Chairman, Associated Builders and Contractors.In a ...Read More

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My dear old departed Grandma, a lifelong farm wife, told me to be careful about putting all my eggs in one basket, but then again she raised chickens.How many of us put that saying into action with our investments?When it comes to diversifying your assets, that old adage is not only relevant – it can be the difference between financial success and failure for individuals and business owners alike.

In any profession, including the building trades and the chicken and egg business, diversification is important so that your portfolio will not be heavily impacted by one trend, event or setback.

Ask yourself these 5 simple questions see if you’re well diversified:

1. Is most of my net worth in a single investment, like my house

...Read More

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Dear Suzanna: My brother “Darrell” and I co-own a profitable construction firm that has been valued at approximately $8 million. Darrell is getting married soon and I suspect his soon-to-be-wife is just a gold digger. When they get married, will she have any claim on the business? What if they get divorced? What should I be doing to protect myself?      -Nervous in Nebraska

Dear Nervous:
Congratulations on your swell new sister-in-law!I bet that family holidays will be a joy from now on.

As you suspect, a some legal action is called for before the ceremony. A little brother-to-brother talk and an easily drafted and funded Partnership Agreement could save you and Darrell a headache down the road.

Here’s the risk: Do ...Read More

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