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Hi - I'm a small (solo) residential remodeler. I've been in business for about 7 years. I do bathrooms, home repair, occasionally an addition. A big project for me is 50K, but most are anywhere from 3-15K. No employees - I hire skilled temp agency laborers and helpers and then other licensed contractors that are friends that come in to work with me when I have bigger projects - but much of the time I work alone. Quite happily.
I am in the final stages of closing a contract to do a basement finish project. Nothing elaborate, basically building interior walls, floors and a bath into a unfinished basement space that has had some of the initial work done already (plumbing roughed, egress windows in). All to code...about 35K, and I really would love the indoor work in the winter!
The homeowners who want to hire me have a connection to a community non-profit organization that offers financial assistance for low income/disabilities. And this is where it gets sticky:
This organization has forwarded me a PQQ - a "Pre-Qualification Questionaire" which first asks some relevant, straightforward questions about: my experience, the individuals in my organization (uh, that would be me), licensing, bonding insurance etc. I am totally legit and never had a claim or a dispute. It asks if I have ever failed to complete a contract, lawsuits, judgements, arbitration...the answer to all is NO! It asks for trade references (no problem - I pay cash for everything and bank references (I've got a business checking account at a bank - not sure what they are going to ask them but OK)
But THEN they want the total worth of all projects for last 5 years, detailed list of the major projects for the last 3 years, and a rather invasive Financial statement (preferably audited) including my organization's latest balance sheet and income statement showing current fixed and other assets (cash on hand, joint ventures, accounts receivable, accrued income, deposits, materials inventory and prepaid expenses) current liabilities (accounts payable, notes payable, accrued expenses, provision for income taxes, advances accrued salaries and accrued payroll taxes, earned surplus and retained earnings)
I know some of you have this ready to go- and an administrative assistant and bookkeeper ready to give it out. I don't! Again, I'm a VERY small remodeling contractor. 1 man band. I don't have any of this. And if I had it, even though I don't have anything to hide, I don't really have any marquee income numbers to brag about. I don't want to show my money number to people - it's private!
I have good relations with my subs, my clients like the work that I do...I have plenty of references and happy clients. I know that I have a lot of work if I want to grow the business to the next level but at this point, because of some health issues I simply don't have the resources or the ability to take it there. For now, I am where I am - an honest, considerate guy with the knowledge and skills to do good work. I am not Walsh Construction. And clients who like dealing with the person who is actually doing the work like hiring me.
I'm a clean cut, drug free, family guy. I have no debt except my mortgage on my home - I own my truck, my tools and everything outright, pay off my credit cards every month, over 800 credit score...solid honest tradesman.
Think back to when you were small and hungry but certainly not desperate. I'm not sure if the homeowners know about the questions or care to know the answers to these questions, Evidently, I have impressed them with my ideas and knowledge to the point of wanting me to do the work. There isn't even any other contractors submitting a proposal! But now I have to impress this non-profit with my balance sheet - which I don't have!
What do I reply to the PQQ? Do I tell them upfront that I am not willing to share the financials and ask if they want my responses to the other questions? Or do I go ahead and answer only what I want to and just leave out the stuff I'm not willing to (and maybe they won't actually ask for the rest?).
It's my opinion that you don't put out things that aren't going to help you get the business, so if I am going to not give it. Turn a negative into a positive - I want to convey the impression that I am purposefully choosing to not give it because it's really none of their business, right?
I'd love to hear what some of you folks would recommend a little guy like me should do...
I am in the final stages of closing a contract to do a basement finish project. Nothing elaborate, basically building interior walls, floors and a bath into a unfinished basement space that has had some of the initial work done already (plumbing roughed, egress windows in). All to code...about 35K, and I really would love the indoor work in the winter!
The homeowners who want to hire me have a connection to a community non-profit organization that offers financial assistance for low income/disabilities. And this is where it gets sticky:
This organization has forwarded me a PQQ - a "Pre-Qualification Questionaire" which first asks some relevant, straightforward questions about: my experience, the individuals in my organization (uh, that would be me), licensing, bonding insurance etc. I am totally legit and never had a claim or a dispute. It asks if I have ever failed to complete a contract, lawsuits, judgements, arbitration...the answer to all is NO! It asks for trade references (no problem - I pay cash for everything and bank references (I've got a business checking account at a bank - not sure what they are going to ask them but OK)
But THEN they want the total worth of all projects for last 5 years, detailed list of the major projects for the last 3 years, and a rather invasive Financial statement (preferably audited) including my organization's latest balance sheet and income statement showing current fixed and other assets (cash on hand, joint ventures, accounts receivable, accrued income, deposits, materials inventory and prepaid expenses) current liabilities (accounts payable, notes payable, accrued expenses, provision for income taxes, advances accrued salaries and accrued payroll taxes, earned surplus and retained earnings)
I know some of you have this ready to go- and an administrative assistant and bookkeeper ready to give it out. I don't! Again, I'm a VERY small remodeling contractor. 1 man band. I don't have any of this. And if I had it, even though I don't have anything to hide, I don't really have any marquee income numbers to brag about. I don't want to show my money number to people - it's private!
I have good relations with my subs, my clients like the work that I do...I have plenty of references and happy clients. I know that I have a lot of work if I want to grow the business to the next level but at this point, because of some health issues I simply don't have the resources or the ability to take it there. For now, I am where I am - an honest, considerate guy with the knowledge and skills to do good work. I am not Walsh Construction. And clients who like dealing with the person who is actually doing the work like hiring me.
I'm a clean cut, drug free, family guy. I have no debt except my mortgage on my home - I own my truck, my tools and everything outright, pay off my credit cards every month, over 800 credit score...solid honest tradesman.
Think back to when you were small and hungry but certainly not desperate. I'm not sure if the homeowners know about the questions or care to know the answers to these questions, Evidently, I have impressed them with my ideas and knowledge to the point of wanting me to do the work. There isn't even any other contractors submitting a proposal! But now I have to impress this non-profit with my balance sheet - which I don't have!
What do I reply to the PQQ? Do I tell them upfront that I am not willing to share the financials and ask if they want my responses to the other questions? Or do I go ahead and answer only what I want to and just leave out the stuff I'm not willing to (and maybe they won't actually ask for the rest?).
It's my opinion that you don't put out things that aren't going to help you get the business, so if I am going to not give it. Turn a negative into a positive - I want to convey the impression that I am purposefully choosing to not give it because it's really none of their business, right?
I'd love to hear what some of you folks would recommend a little guy like me should do...