with Dana Jensen
Occasionally, business owners need someone to view their business from a different lens. We’re human and we miss things, but in business, every penny needs to be accounted for—which is why conversations on finances are so important. In this episode, Karalynn sits with Business Finance Consultant Dana Jensen who has been fixing finances in the construction industry for 25 years. Filled with loads of information and advice, listeners are sure to find this information helpful to their bank accounts and business.
Growing up in the construction industry, Dana understood the importance of collecting and managing money from completed jobs which drove him to hang up his tool belt and focus on his financing business, Danisher Consulting. Ending the fiscal year and realizing that you’ve made no money is an issue that is far too common in the construction industry, especially for business owners who are just getting started. Dana’s strategy involves bringing only the best solutions to his client’s business to produce better results. These solutions can be huge components in setting up a successful business.
Diving into Dana’s expertise, he shares his observations on how the roles of a general contractor and specialty contractor make a difference in the amount of money they make. GCs are known for the management piece of the business while specialty contractors are the ones to perform the craft. Doing the work is an advantage because they are much better at pricing the work. “No one should know better the complexities and cost of putting this work in place than a specialty trade contractor,” says Dana. This is what positions them to win a profitable job. Taking the time to compare estimated costs and actual job costs can be the fastest way to prevent financial loss in a construction business.
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It is not uncommon for a construction job to end up being more costly than the initial estimate and that is why Dana encourages his clients to include T&M rates in their proposals. Having these predetermined rates in place protects contractors from footing the cost of markups on materials, use of employees, use of equipment, and extra work. From a lawyer’s perspective, Karalynn agrees that these are all things that should be included in the contract. She explains how the issue of material supply increases has become more prevalent in today’s economy and that contract provisions along with terms and conditions have been a saving grace for many of her clients. Because general contractors are accustomed to transferring risks to the trades, a concise and fair contract for subcontractors is essential.
Dana concludes the episode by sharing a few of his clients’ success stories which all started with him having to sit down and have very transparent and possibly uncomfortable conversations with these business owners regarding their finances. He talks about raising capital and expanding businesses—all the things an aspiring successful business owner will want to hear. Tune in to this episode of The Quit Getting Screwed podcast to get the 411 on best practices for your construction business and don’t forget to subscribe. If you’re interested in chatting with Dana about the financial state of your business, you can visit his website to book an appointment. For more from Karalynn, follow The Cromeens Law Firm on Facebook, LinkedIn, or Instagram. You can also purchase the book that started it all, Quit Getting Screwed, on Amazon.
This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.