Financial Blueprint

January 24, 2007 | Link This | Email this | Comments (4)

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

Industries: Construction, Finance, Operations

January 22, 2007 | Link This | Email this | Comments (0)

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

Industries: Construction, Finance, Retail

January 19, 2007 | Link This | Email this | Comments (4)

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

Industries: Construction, Finance, Operations, Retail

January 17, 2007 | Link This | Email this | Comments (0)

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

...Read More
Industries: Construction, Finance, Operations, Retail

January 15, 2007 | Link This | Email this | Comments (3)

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

Industries: Construction, Human Resources, Operations