Our Focus: Construction Cost Control Cash Flow Management Management Consulting About Us Tyler Construction Engineers, P.C. is a licensed engineering firm in the state of TN. We work primarily within the construction industry to provide the most comprehensive business resource for small business owners.
Masters of Engineering Management Masters of Business Administration Bachelors of Civil Engineering Bachelors of Electrical Engineering Bachelors of Accounting Bachelors of Business Administration Professional Education Professional Education & Accreditation of Our Consultants
Professional Engineer, Licensed by the State of TN Certified Public Accountant, Licensed by the State of TN Tax Professional, Licensed by the IRS American Society of Civil Engineers (ASCE) American Planning Association (APA) National Society of Professional Engineers (NSPE) Tennessee Road Builders Association (TRBA) National Association of Black Accountants (NABA Honor Member of Chi Epsilon National Civil Engineering Representative Professional Affiliations
Curtis Webb - strategic marketing & competitive advantage Ericka Hayes, CPA – accounting & business development Marshall Tabb – accounting & organizational effectiveness Jay B Mercer – accounting & small business tax strategies Victor Tyler, P.E. – estimating, bidding & project delivery Our Consultant Team
Our Visiting Clients Monte Edwards, V. President, SRS, Inc., Gallatin Andre Gist, President, MIG Construction Services, LLC, Lexington Kimberly Danson, President, KIMBERLY, Inc., Sparta Brenda Booker, President, Booker Engineering, Inc., Franklin Cliff Steger, President, C D Steger Construction, Inc., Brentwood Kim Willis, President, Columbia Construction, Inc., Columbia Mary Forrester, President, Lynn Sanford Construction, LLC, Maryville Cliftena Carter, President, Carter Safety Consultants, Inc., Fayetteville Dee Davis, President, Panther Construction Co., Inc., Nashville
The fundamentals to business success! Sponsored By: Knoxville Chamber of Commerce Presentation Presented By: cost consultants | estimators | management consultants
Seek: Ways to increase contract opportunities The best combination of technical & financial resources Opportunities to expand or diversity experience Opportunities to build performance history Access to once unavailable customers Ways to build stronger relationships with large and small businesses Executing Your Plan
Small Businesses Won Record $93.3 Billion in Federal Contracts More Than Half of Federal Agencies Met 2008 Small Business Goal In SBA’s Annual Contracting Scorecard In addition, small disadvantaged businesses, women-owned businesses and service-disabled veteran-owned businesses increased their share of federal contracting dollars by at least $1 billion to $3 billion.
Small Business Goal Summary Report 2007 2008 CategoryGoal%$%$ Small Businesses23%22%$83.2 billion 21.50%$93.2 billion Small Disadvantaged Businesses 5%6.6%$24.9 billion 6.76%$29.3 billion Women5%3.4%$13 billion 3.40%$14.7 billion Service-disabled Vets3%1.01%$3.8 billion 1.49%$6.4 billion HUBZone3%2.2%$8.5 billion 2.34%$10.1 billion
Things to Consider in Teaming / Joint-Venture Arrangements Identify your firm’s strengths, weaknesses, and future goals. Research your potential partner’s a.financial condition b.past performance c.claim history d.Reputation e.Experience f.current team relationships Consult your attorney / business consultant
Teaming Agreement Scope of work each member will perform on the contract Payment terms for each member of the teaming agreement Scope of the relationship (i.e. joint-venture or prime-sub) Define the handling, transfer and protection of each member’s technology, process or inventions for performance of contract Define the termination / expiration of the teaming relationship
Contents of SBA 8(a) Joint-Venture Agreements The purpose of the joint-venture Designation of the 8(a) firm as the managing venturer and project manager of the 8(a) contract Statement that not less than 51% of the net profits earned by the J-V will be distributed to the 8(a) participant firm(s) Establishment of a special bank account in the name of the J-V (account must require the signature of all parties of the J-V) Itemizing all major equipment or facilities and or other resources to be furnished by each party of the J-V Obligation of all parties to complete contract
Contents of SBA 8(a) Joint-Venture Agreement (cont’d) Specify the responsibilities of the parties with regard to contract performance, labor and negotiation of the 8(a) contract Designating that accounting and other administrative records relating to J-V be kept at office of managing venturer Requirement that final original records be retained by the managing J-V upon completion of 8(a) contract Requirement that quarterly financial statements be submitted to SBA (including salaries of J-V principles) Requirement that project-end P&L statement be submitted to SBA NOTE: SBA must approve a J-V agreement prior to the award of an 8(a) contract
Teaming / Joint-Venturing …. Are you ready for it?
Is Your Business Successful? If you were an outsider investor looking at your business, would you invest in it ?
Success Blockers Company wins business by selling low price Owner doesn’t understand business fundamentals No passion for your service or customers Not maximizing use of technology Not having a competitive advantage Trying to grow in a slow market place No leadership or strong management team Not enough money and too much debt Owner controls everything Owner (key managers) don’t change!
They know what they Want. They have a written Plan to get what they want. They always make Progress toward what they want. Successful Business Owners Share 3 Characteristics:
Predictable Measurable Repeatable Successful business owners create processes that are…
Marketing Strategy Define Your Competitive Advantage Create your Value Proposition Identify Your Market Produce Your Sells Pitch Define Your Niche What is the best way to Attract & Persuade? Market Strategy
The key to business success is turning customer problems into your profit. ….In Business to Solve Problems Project People Product(s) Price Production Profit
Perform a Bid / No-Bid Analysis Strategy to Improve Profitability and Performance STRESS TEST i.e., risk assessment
Stress Test Questions Bid / No-Bid Decision Have you read the RFP Can you set a realistic budget & schedule for project Financial capacity & cash flow Evaluation staff & experience Current systems & controls in place Evaluation of Team Members RFP new market / region/ service? Review contract language & requirements (fees, insurance, liability)
Answer to the Stress Test Questions Answer to the Stress Test Questions Knowing Your Company Culture Company Policies Procedures Customer Service Work / Life Balance Discipline Attitudes Risk Business Strategy Financial & Budget Business Processes (Org Chart) Information Technology Marketing Sales Training
Piecing It All Together
Seek: Ways to increase contract opportunities The best combination of technical & financial resources Opportunities to expand or diversity experience Opportunities to build performance history Access to once unavailable customers Ways to build stronger relationships with large and small businesses Re-evaluate Your Plan