TRUSAINT21

Thanks man appreciate it

Thanks, appreciate it

I don’t go to Lafayette often, but we have a group going to the Wallen concert on the 23rd. What’s a popular place with a fun atmosphere to day drink before the concert? Thanks in advance

Aside from factoring receivables...Do you guys have any debt restructuring ideas...

Here is the deal, my company's current ratio is below 1..it is .94 (negative working capital). I'm thinking of terming out part of the credit line that was used for asset purchases and refinancing current Note Payables into 1 longer term payable. I know I'll end up paying more in interest in the long run, but cash flow is so tight, something has to be done...

Any one else have any ideas on increasing my net working capital or any different ideas on debt restructuring?

I believe your idea of your business plan is a good one. The depth of the business plan depends on how detailed you want to get with your projections and how much you want to "stick with a plan". Since you aren't needing financing, I do not believe there is a need to fill your business plan with unneeded info. However, you should come up with a solid plan including all facets of the business to use as a guideline for operations and decisions.


I just recently went to the bank with an owner of the company I currently work for to open a new business with him. I had to come up with the business plan in one day because of scheduling conflicts. We went to the bank with a one page overview of the company, competitors, current and prospective clients, etc. I only had time to come up with yr 1 projections. The bank was fine with that because our conversation was solid.
We were awarded a $1.1 mil loan for startup. I'm sure this can be credited to the relationship the other guy has with the bankers.

My bro n law works at a plant on the river. He made it through the interview process and is a Unit Specialist...VERY EASY JOB w/ great pay for the work he does. He makes 28 or 29 per hour, and works only half the year; less if you take into account all the vacation time and sick/personal days they are able to take. This year, he will clear around 90 k with minimal OT. He works shift work, and does switch from days to nights often, but with the way his schedule works, he can take 2 days vacation and have 7 days off...
I think if you are looking for a secure job with great pay, plants are a good way to go. If you do have a degree, you can get promoted to supervisor if you show initiative. Most of the guys that work there are like my bro n law and are happy with going there, doing what they have to do, and going home...

I definitely agree with all proposed suggestions, and will consider all before implementation. BUT, my immediate actions are clearing the oldest AP and "getting good" with our main suppliers. Our SLOW payment, which is a result from delayed receivables is hurting, so as a #1 priority, I have selected a few main suppliers to get right with, in the meantime I'm sending partial payments and communicating with the other vendors we owe so they know what's going on and that we are just not avoiding paying them...

The problem with not providing service to the customers that are slow paying is that there are a TON of competitors in this industry. We have a major competitor just across the intracoastal waterway from us, and another just a bit further...The majority of our clients are big dog clients and they set their own payment terms in the MSA issued before beginning work. I guess my remedy to this would be if they go past their terms stated in the MSA, "Call them on it"...but in a way it doesn't hurt our "relationship" and affect us getting jobs.

I think my proposed plan for 2012 will be to attempt to make every job a bid job and have the managers keep the cost of each project under a microscope and turn the biggest % they can out of it...we are not getting anywhere with T&M + 15%...?

Avg days paid on receivables...there is none...this was not being managed. The owners' wives were coming in at their leisure and checked on things every now and then. They ate up their credit line close to 1 mil...

it is oil field services...15% is an industry standard.

Inland Construction, Coatings, Fabrication.

All paint jobs are quote jobs.

Construction and Fab vary.

To me, the 15% is a losing percentage bc OH is close to 30% of Revenue, but any % that can be put towards it helps...IMO

I'm hoping some of you pro's can help me out due to my lack of experience...

I've recently been put in charge of the financial side of my current company. The owners are leaving all financial decisions to me. They will come to me when they want to purchase new assets and for big expenses, etc.

I have my own idea of how I should position the company for growth considering the needed increase in OH expenses to purchase new assets to be able to grow, but I lack experience. What are some things I should attempt to accomplish?

Right now, cash flow is not right, but our receivables are almost double our payables. We currently bring in on avg $600 a month in Revenue, BUT, a majority of the time one of our 3 departments is always in the red due to mismanagement of labor or material expenses.

I've changed the bidding process to where I must be provided with price vs. cost for quoted jobs (not T&M (time & material jobs = cost + 15%)), and I have guidelines I will set on the AR side due to prior non management of the receivables.

I've stressed the importance of growing our GP% to cover the increased OH expenses for assets. Should I be keeping asset purchases to some kind of ratio?

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CD ladder

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Exactly what I would do. It allows for higher interest rate while still maintaining a certian level of liquidity.

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not much. you are completely and totally replaceable nearly instantly.

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I understand my lack of expertise in the field makes me more replaceable than irreplacable, hence the reason why I started this thread...but my work ethic and dedication to success are not replaceable compared to some dumbass 22 yr old straight out of college who thinks he knows everything bc he got an "A" in class... I do have years of a proven track record, not in an accounting specific field, but in transferrable skills from the military and my full time salaried job while I was putting myself through college...

Also, my job also consist of being the HS&E Director...find an ACCOUNTANT that can double as a Safety rep to go to client meetings, present company performance through a behavioral based safety program, etc.... Thanks for the quick, ignorant judgement.

I could say the same to you...just because you have experience does not mean you are irreplaceable.