When I entered the homebuilding industry, I was fresh out of college - and - like many who have shiny new diplomas, I thought I knew it all.
Then real-life hit and I found myself in a low-level homebuilding job where I realized how little I did know.
I worked my way up to manage construction - which meant I had to know about job costs and managing profits on each individual house (and the money that came into the business for each of those jobs).
There was no formal training. Just on-the-job-by-fire training (and that's not unusual in this industry).
Maybe you're in the same boat. Maybe you "fell" into your position and you don't know what, um, you don't know.
That's why I thought it was a good idea to have a series of emails talking about the "money" that you'll work with in this industry.
Specifically, I'll talk about the following things in the next few weeks:
- Assets - the things your company owns and/or has "on hand."
- Liabilities - those things that your company "owes" to others.
- Revenue - the glorious money that you earn for your hard work.
- Expenses - the things you need to pay to keep the doors open.
- Equity - how much your business is worth.
I'll break these down in separate emails, because - let's face it - accounting isn't always the most exciting thing to read about (unless, of course, you're an accountant and LOVE to read about numbers....no judgement here).
Have a great week. Happy building to you!
-Brad