It is likely many firms are going to be showing either minimal profits and/or losses this coming year end. How is your surety going to view these results?  I think it comes down to the nature of the results and what you did to get there. 

If you picked up a lot of work with minimal profits I think you might have an issue.  Those projects will last for some time and continue to impact results while causing your surety pause on future work you want to pursue.  If your results are due to lack of revenue the positive is you don’t have baggage to deal with entering the new year.  In my opinion the surety will look at this business decision more favorably as your ability to pick up some work at the right margins will allow you to regain your standing quicker. 

End of the day I think the firm with minimal profits to a loss but little work will be in much better shape than the firm saddled with low margin work over the long haul.  Good luck out there.

This entry was posted on Wednesday, October 28th, 2009 at 7:06 pm and is filed under Michael Strahan Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.