OVERCOMING ADVERSITY
lot of businesses, there were skeletons in the closet. Andrew had everything in his head. We had no systems in place for how projects were priced or what mark-up he used. “We did a lot of that without knowing the numbers, which nearly killed the business a few times. A couple of years ago, projects were finishing and cash flow was slowing, and we realised
role and able to give opportunities to the people in the business.”
margin, earnings before interest and taxes – all of it. That’s the biggest change that’s allowed us to move forward. “Now we use Xero, and I can see exactly where we are financially. Before, I had no idea and made decisions without understanding the consequences. There were occasions where we nearly hit the wall, but with determination we got through.” Taking any approach to overcome adversity requires grit and determination. But it also means finding effective ways to bring about positive change. Archibald connected with other business owners and taught himself what he needed to learn to fill his knowledge gaps. “There’s so much advice, you just need to look for it. Use what’s out there, and speak to people in the know,” he says.
Know your numbers Suddenly having to take over a company run by your mentor is a rare situation. Navigating money troubles is a reality endured by many construction business owners. Regardless, being able to find your way through the messy challenge is key. Often that means coming back to the fundamentals of business. For Archibald, it was about knowing his numbers. Thinking back, he says: “If I’d understood the numbers then the way I do now, I probably wouldn’t have taken on the business. Like a
we hadn’t been making any money. We fell into some debts, owing HMRC. I
realised I needed to get a handle on it.
“I went on a Know Your Numbers mastery course to understand profit and loss, balance sheets, gross profit
“There’s so much advice, you just need to look for it. Use what’s out there, and speak to people.”
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