ForConstructionPros.com

A longtime industry friend contacted me a couple days ago to tell me the company he works for - one of the most progressive construction firms in the Northeast - is closing its doors after 50+ years in business. The same day, I learned that a sizable, family-owned construction management firm in the Southwest won't be making it past the fourth generation.
Such news is a sad reminder of what can happen if you fail to plan ahead to insulate your business against economic risks. It is also a cautionary tale that even well-established companies can fail if management doesn't heed the warning signs and take action quickly.
If your company is struggling, it need not be another victim of the weak economy. And if it's well leveraged, it may still benefit from a review of policies and procedures to make sure it doesn't falter in the future.

Start by getting your house in order. It's essential for any business to maintain good "housekeeping" practices. Establish realistic goals and budget accordingly; understand project costs and bid realistically; bill customers in a timely manner to keep cash flowing in, etc. (Additional housekeeping tips can be found in the Running Your Business section of www.ForConstructionPros.com.) Get outside help if you're struggling to keep finances under control.
If you do find your business faltering, seek financial guidance, and communicate openly with your banker and suppliers. They have a stake in keeping your business afloat, so they may be willing to come up with terms to help you meet your debt obligations and still sustain sufficient working capital.