An accomplished entrepreneur, Gregor Gregory founded AAUG Realty with which he built projects in South Florida. The president of an international underwriter of surety bonds, Gregor Gregory leverages his experience at AAUG Realty to work with construction entrepreneurs.
One of the most important traits of a construction entrepreneur is financial discipline. A developer must have control over his or her cash flow. Before each project, the developer has to map out a list of all the expenses he or she will likely pay then rationalize these with the project’s income and his or her cash at hand. Expenses include licenses and permissions, insurance for workers and the business, employee pay, and construction and safety equipment.
Many developers take loans to meet their cash needs which adds more risk if they get their budgeting wrong since they could go bankrupt and still have a huge loan to pay. It is better and cheaper to rent construction equipment, including employees’ safety equipment, at the start of the entrepreneur’s career, putting off outright purchases until later when there’s enough cash. If there’s still a cash shortage after renting out equipment, the entrepreneur can take short term loans with payment schedules that fit into his or her budget estimates.
Furthermore, this sort of careful planning is required from the start to the end of a project. If a developer has several projects going on simultaneously, he or she should work with an accountant to create a work in progress (WIP) report outlining all active projects, how much he or she has paid out and earned from each, and the gross profits thereof. Deliberate financial planning is what will keep the company afloat.
