lbtcadmin
11-03-2006, 11:37 PM
Common Money Mistakes
By Phil Nilsson, Green Industry Consultant
www.nilssonbooks.com (http://www.nilssonbooks.com)
Most of the money you’re going to make, spend, accumulate, invest and save comes from the profits you chalk up during your working lifetime. You might inherit some money and get a few breaks here and there, but the majority of folks have to earn it.
The kind of "financial life" you’re going to enjoy now and later depends heavily on profits - folding money that ends up building your financial future. When you realize this, you see that there’s a big difference (every year) when income rises by $5,000, $10,000 or more because the money is in excess of your immediate needs. If all you accomplish is the "break-even" - meeting personal expenses and nothing more - it becomes obvious that you’re not making enough money. That’s no mystery, but the biggest money mistake people make is ignoring the break-even syndrome altogether as if it will just go away.
I’m not suggesting that you stash away money until you’re 80. I’m saying that saving money is two-sided. It consists of profit level, and it consists of what to do with money that’s left over. If leftover money is never there for you, we know that your life could get quite difficult. Knowing this and internalizing that realty then comes down to doing a little financial planning. I don’t mean the kind you get when an insurance agent presents a scenario. I mean your own financial planning for your business. It starts with a realistic look about one year in advance for each year you are in business.
WHAT ARE YOUR NEEDS? In the daily grind of working your business it’s easy to overlook some of the simplest facts in life about money. One is that you need to keep track of it, and the other is that you need to be prepared to do something about money when and if it becomes available.
I know that sounds overly simplified, but sit down once a year and start with a simple budget. What does it take to carry your personal expenses, level of debt and to make ends meet as a minimum? In other words, get a budget together. A budget tells you what you need to bring in to make ends meet.
Match that need with a company budget. What do you expect as profits from your business for the coming year? Ask yourself whether you are living within your means, and ask the same question of your business. Does the business have the ability to match or exceed those expectations? What are the expectations? Many contractors I have contact with don’t have the answers to these questions, and that leads to a lot of confusion in financial planning, especially when it comes to knowing where the profits are or have gone.
Therefore, the most important financial statement you’ll ever want and need to help find the answers you need is not - repeat is not - the Profit and Loss Statement. Instead, it’s the Statement of Source & Application of Funds. Where did the money come from, and where did it go? That’s what the Statement of Source & Application of Funds will tell you. Ask your accountant about it.
The Statement of Source & Application of Funds offers the same information as your personal family budget. Where did the money come from? Where did the money go? How much, if anything, is left over? How do I change the "shortfall," or what do I do with the excess? The most common money mistake is not paying attention to the answers to these questions.
Other resources ...
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
"Best Selling Author"
www.nilssonbooks.com (http://www.nilssonbooks.com/)
Background & References
Nilsson Associates are Consultants to the membership of the Professional Lawn Care Association of America. Our Learning Systems are endorsed by the leading Industry Associations, by the Horticultural Departments at Ohio State University, The University of Tennessee, The University of Georgia, and in use by thousands of Landscape Contractors, Lawn Service Companies, Property Managers, Government Facilities, Park Departments and Municipalities nationwide.
Other
resources:
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
Nilsson's FREE Job Pricing Guidelines
When it comes to pricing lawn and landscape jobsnobody has more landscape industry pricing information than Nilsson Associates, Green Industry Consultants. Nilsson's Job Price Guides covers lawn care bids, job bidding & estimating for tree care, irrigation installation & service, pavement sweeping & maintenance, snow plowing operations, landscaping and hardscaping job bids for both commercial & residential customers as well as real estate management, parks & recreation departments, municipalities, college and univeristy grounds. The prices cover; estimates & bids for grounds services, landscaping pricing estimates , estimating & bid the price seasonal work, year around commercial estimate contracts, price per square foot, best grounds maintenance & landscaping job to bid & pricing, price of lawn care, lawn mowing price, aeration pricing, lawns, commercial landscape job bid estimates, most all outdoor maintenance estimating & pricing, mulching prices, pricing chemicals, weeding & aerating pricing, fertilizer prices, prices for organic fertilizer, pricing weeds in beds, pricing pruning & trimming trees & shrubs, pricing commercial & residential snow plowing, hardscape pricing, pricing hydroseeding, irrigation service estimates for commercial & residential, pricing seeding lawns, pricing lawn sod, prices for slit seeding lawns, pricing edging lawn beds, spring cleanup prices, pricing fall cleanups, hourly price of pressure washing walks & patios, pricing trees, stump grinding prices, price for gutter cleaning, lawn dethatching price, price for shoveling snow, pricing salting, price for sanding.
For more information: Click Here for FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
Copyright Nilsson Associates 2005
__________________
Phil Nilsson
Nilsson Associates
Green Industry Consultants - Since 1975
www.nilssonbooks.com (http://www.nilssonbooks.com/)
Toll FREE 1-866-280-2252
By Phil Nilsson, Green Industry Consultant
www.nilssonbooks.com (http://www.nilssonbooks.com)
Most of the money you’re going to make, spend, accumulate, invest and save comes from the profits you chalk up during your working lifetime. You might inherit some money and get a few breaks here and there, but the majority of folks have to earn it.
The kind of "financial life" you’re going to enjoy now and later depends heavily on profits - folding money that ends up building your financial future. When you realize this, you see that there’s a big difference (every year) when income rises by $5,000, $10,000 or more because the money is in excess of your immediate needs. If all you accomplish is the "break-even" - meeting personal expenses and nothing more - it becomes obvious that you’re not making enough money. That’s no mystery, but the biggest money mistake people make is ignoring the break-even syndrome altogether as if it will just go away.
I’m not suggesting that you stash away money until you’re 80. I’m saying that saving money is two-sided. It consists of profit level, and it consists of what to do with money that’s left over. If leftover money is never there for you, we know that your life could get quite difficult. Knowing this and internalizing that realty then comes down to doing a little financial planning. I don’t mean the kind you get when an insurance agent presents a scenario. I mean your own financial planning for your business. It starts with a realistic look about one year in advance for each year you are in business.
WHAT ARE YOUR NEEDS? In the daily grind of working your business it’s easy to overlook some of the simplest facts in life about money. One is that you need to keep track of it, and the other is that you need to be prepared to do something about money when and if it becomes available.
I know that sounds overly simplified, but sit down once a year and start with a simple budget. What does it take to carry your personal expenses, level of debt and to make ends meet as a minimum? In other words, get a budget together. A budget tells you what you need to bring in to make ends meet.
Match that need with a company budget. What do you expect as profits from your business for the coming year? Ask yourself whether you are living within your means, and ask the same question of your business. Does the business have the ability to match or exceed those expectations? What are the expectations? Many contractors I have contact with don’t have the answers to these questions, and that leads to a lot of confusion in financial planning, especially when it comes to knowing where the profits are or have gone.
Therefore, the most important financial statement you’ll ever want and need to help find the answers you need is not - repeat is not - the Profit and Loss Statement. Instead, it’s the Statement of Source & Application of Funds. Where did the money come from, and where did it go? That’s what the Statement of Source & Application of Funds will tell you. Ask your accountant about it.
The Statement of Source & Application of Funds offers the same information as your personal family budget. Where did the money come from? Where did the money go? How much, if anything, is left over? How do I change the "shortfall," or what do I do with the excess? The most common money mistake is not paying attention to the answers to these questions.
Other resources ...
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
"Best Selling Author"
www.nilssonbooks.com (http://www.nilssonbooks.com/)
Background & References
Nilsson Associates are Consultants to the membership of the Professional Lawn Care Association of America. Our Learning Systems are endorsed by the leading Industry Associations, by the Horticultural Departments at Ohio State University, The University of Tennessee, The University of Georgia, and in use by thousands of Landscape Contractors, Lawn Service Companies, Property Managers, Government Facilities, Park Departments and Municipalities nationwide.
Other
resources:
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
Nilsson's FREE Job Pricing Guidelines
When it comes to pricing lawn and landscape jobsnobody has more landscape industry pricing information than Nilsson Associates, Green Industry Consultants. Nilsson's Job Price Guides covers lawn care bids, job bidding & estimating for tree care, irrigation installation & service, pavement sweeping & maintenance, snow plowing operations, landscaping and hardscaping job bids for both commercial & residential customers as well as real estate management, parks & recreation departments, municipalities, college and univeristy grounds. The prices cover; estimates & bids for grounds services, landscaping pricing estimates , estimating & bid the price seasonal work, year around commercial estimate contracts, price per square foot, best grounds maintenance & landscaping job to bid & pricing, price of lawn care, lawn mowing price, aeration pricing, lawns, commercial landscape job bid estimates, most all outdoor maintenance estimating & pricing, mulching prices, pricing chemicals, weeding & aerating pricing, fertilizer prices, prices for organic fertilizer, pricing weeds in beds, pricing pruning & trimming trees & shrubs, pricing commercial & residential snow plowing, hardscape pricing, pricing hydroseeding, irrigation service estimates for commercial & residential, pricing seeding lawns, pricing lawn sod, prices for slit seeding lawns, pricing edging lawn beds, spring cleanup prices, pricing fall cleanups, hourly price of pressure washing walks & patios, pricing trees, stump grinding prices, price for gutter cleaning, lawn dethatching price, price for shoveling snow, pricing salting, price for sanding.
For more information: Click Here for FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
Copyright Nilsson Associates 2005
__________________
Phil Nilsson
Nilsson Associates
Green Industry Consultants - Since 1975
www.nilssonbooks.com (http://www.nilssonbooks.com/)
Toll FREE 1-866-280-2252