3. The One Figure That Could Destroy Your Building Company with Russ, Sky & Andy

In this episode of the Professional Builders Secrets podcast, our host, Bosco Anthony is joined by Co-founders of the Association of Professional Builders Russ Stephens and Sky Stephens, along with APB’s Head Coach, Andy Skarda. Throughout this episode, the trio reveal the one figure that could destroy your building company. The Association of Professional Builders is a business coaching company that helps residential home builders across the globe systemise their building companies. Specialised coaching on sales, marketing, financials, business operations and even personal development in order to operate a true professional building company. During episode three of the Professional Builders Secrets podcast, Russ, Sky and Andy reveal the shocking truth behind why so many building companies fail due to not understanding the true state of their finances. Unfortunately, too many builders leave it up to their accountants who often miscalculate the most important number in a builders financial reporting, leaving a cancer growing inside their building company. Tune into the full episode to hear the APB trio uncover the secrets behind Work in Progress and the accounting adjustment figure that could save your building company. ABOUT RUSS STEPHENS Co-founder of the Association of Professional Builders, Russ is a data analysis expert who has introduced data-driven decision making to the residential construction industry. Russ is also a proud member of the Forbes Business Development Council. Connect with Russ: linkedin.com/in/russstephens ABOUT SKY STEPHENS Co-founder of the Association of Professional Builders, Sky specialises in taking complex business strategies and converting them into actionable step-by-step guides for building company owners. Sky is also a proud member of The National Association of Women in Construction and the Top 100 Women in the broader construction sector. Connect with Sky: linkedin.com/in/skycheristephens ABOUT ANDY SKARDA Head Coach at the Association of Professional Builders, Andy specialises in helping business owners in the building industry identify and implement the skills and systems they need to be successful, without needing to go back to school. Or more importantly, without going bust. Connect with Andy: linkedin.com/in/andy-skarda-92a6875/ TIMELINE 1:00 The biggest financial problem facing builders. 4:00 The role of accountants. 6:10 Why do accountants miscalculate the work in progress (WIP) figure? 9:20 Builder’s reactions after learning about WIP. 14:00 The Work In Progress Accounting Adjustment (WIPAA) figure explained. 15:20 Why most building companies go bust. 21:00 Where did the knowledge gap originate from? 28:20 Key areas of focus in implementation of WIPAA as a head coach. 31:00 The difference between WIP and WIPAA. 34:00 The biggest single change in a builder’s life. 44:00 The industry benchmarks for markup vs margin. LINKS, RESOURCES & MORE Free Download: How To Calculate Work In Progress: go.associationofprofessionalbuilders.com/work-in-progress APB Website: associationofprofessionalbuilders.com