Lumber Toolkit
BLOG
July 2, 2024
|
2
min read

Building Financial Fortitude in Construction: Insights from Greg Archer

July 2, 2024
|
2
min read
Payroll

Inside the Blog

Experience the future of construction workforce management with Lumber.
Talk to our expert

In construction, financial acumen is as crucial as architectural blueprints. Recently, we had the privilege of hosting Greg Archer, CFO of KFE Solutions, for an illuminating webinar on "Blueprints for Success: Building Financial Foundations." As a provider of workforce management solutions, Lumber recognizes the immense value of such insights for our clients.

Let's delve into some key takeaways from Greg's session.

The MATT Method: A Framework for Financial Success

Greg introduced us to the Mindset, Actions, Tools, and Team (MATT) Method, a comprehensive approach to managing finances in construction.

Mindset: The Foundation of Financial Strategy

The right mindset is crucial for financial success. This includes understanding your company's motivations and setting clear objectives. Are you aiming for rapid growth or steady profitability? Your financial strategies should align with these core goals.

Actions: Implementing Financial Best Practices

Actions refer to the day-to-day practices and decisions that impact your financial health. This includes monitoring key financial indicators and making data-driven decisions.

Tools: Leveraging Technology for Financial Management

Having the right tools can make a significant difference in financial management. Greg highlighted two foundational tools that every construction company should have:

WIP (Work In Progress) Report: This crucial tool helps track the financial progress of ongoing projects, providing insights into project profitability and cash flow.

Job Costing Software: This allows for accurate tracking of costs associated with each project, enabling better budgeting and profitability analysis.

Team: Building a Strong Financial Core

Having the right team in place, whether internal staff or external advisors, is crucial for executing your financial strategy effectively.

Motivations and Objectives: The Cornerstones of Financial Strategy

Understanding your company's motivations and setting clear objectives is fundamental to financial success. Are you aiming for rapid growth or steady profitability? Your financial strategies should align with these core goals.

The Critical 4: Your Financial North Star

Greg stressed the importance of four key financial indicators that every CEO should track religiously:

  1. Revenue
  2. Gross Profit
  3. Net Profit
  4. Cash Flow

These numbers provide a snapshot of your company's financial health and can guide critical decision-making.

Project Lifecycles: A Three-Stage Approach

Another valuable insight from Greg was his breakdown of project lifecycles into three distinct phases:

1. Bidding Phase: This stage sets the financial tone for the entire project.

2. Building and Managing the Project: Continuous monitoring and adjustment are key during execution.

3. Project Post Mortem: A crucial, often overlooked stage for learning and improvement.

This structured approach ensures that financial considerations are woven into every phase of a project, from inception to completion.

Tying It All Together: Projects and Company Financials

The most critical lesson was the importance of integrating project finances with overall company financials and cash flow. This holistic view allows for better resource allocation and strategic planning.

The Lumber Perspective

At Lumber, we understand that robust financial management is the bedrock of construction success. Our all-in-one workforce management platform complements Greg Archer's strategies. By streamlining payroll, time tracking, and compliance, we help construction companies maintain a clear financial picture, allowing them to focus on the Critical 4 numbers and execute projects more efficiently.

Looking Ahead

As we navigate the complex world of construction finance, insights like those shared by Greg Archer are invaluable. They remind us that success in construction is built not just with bricks and mortar but also with sound financial strategies and tools.

For those who missed this enlightening session, fear not. Lumber is committed to bringing you more expert insights to help build your financial foundations. Stay tuned for our next webinar, where we'll continue to explore strategies for success in the construction industry.

In the meantime, if you're looking to strengthen your financial foundations through better workforce management, remember that Lumber is here to help. Lumber's integrated platform is designed to give you the clarity and control you need to make informed financial decisions.

After all, in construction, a solid financial foundation is just as important as the ones we lay in concrete.

Want to watch the entire session? Click here
Join our upcoming webinars to stay ahead with expert insights and strategies—
Register now!
 
class SampleComponent extends React.Component { 
  // using the experimental public class field syntax below. We can also attach  
  // the contextType to the current class 
  static contextType = ColorContext; 
  render() { 
    return <Button color={this.color} /> 
  } 
} 

Get started with Lumber

Ready to 10x your workforce productivity?
Schedule a demo

Ready to unlock productivity?

Call our Lumber expert today!
Talk to us