Secrets of Bonding 141: Surety Bonds and Zombies

Zombies are bad. They eat your beef and your brains. Who wants THAT?!

Same goes for your architecture business. There are zombies that can ruin your bonding and eat up your business. And the affliction allotment is… it’s preventable!

Does the crank accept a name? Accountants alarm it “Fixed Overhead.” This is a controllable bulk that, if larboard unattended, can eat your beef and accuracy (figuratively.) Let’s ascertain the monster:

Fixed Overhead – Architecture companies acquire accepted anchored aerial costs. These are costs that do not alter with the akin of the company’s output such as: apparatus rental, abrasion on architecture equipment, allowance premiums, salaries, appointment expenses, licensing fees and assurance equipment.

As against to Variable Overhead – These costs alter in admeasurement to the bulk of production. Variable aerial mostly relates to alternate aberrant action costs, food and utilities such as electricity, gas and telecommunications expenses.

The crisis of anchored aerial is that, during times of bargain aggregate / revenues, the bulk does not go down. This agency if sales are weak, your costs accept not beneath proportionately. These bills accumulate rolling in relentlessly. They just don’t care.

The alone achievement architecture managers accept is to be alert if incurring such expenses, and consistently plan to abate them so the aggregation can survive the assured troughs that appear amid the peaks of activity.

Here are 40 account that may advice abate / annihilate anchored overhead:

  1. Lease-purchase options for cars and equipment
  2. Employ part-time mechanics and authoritative staff
  3. Pay advisers for use of their vehicles
  4. Accumulate accessories longer
  5. In barren years, apathetic down abrasion schedule
  6. Overhaul accessories and accessories instead of purchasing new
  7. Review / adduce allowance annually. Consider self-insurance or affiliation captives.
  8. Annihilate overlapping allowance coverages
  9. Improve assurance program
  10. Examine Workers Advantage classifications
  11. Consider accretion deductibles
  12. Annihilate over insurance, such as abbreviation inventories
  13. Deactivate, de-register and uninsure bare vehicles
  14. Challenge acreage valuations (taxes)
  15. Avoid the bulk of audited cyberbanking statements if possible
  16. Abate accounting fees by acceptable your CPA
  17. Consider application a bounded CPA rather than a civic firm
  18. Charter bare space
  19. Consider a abate building
  20. Consider top body stacking and accumulator systems
  21. Renegotiate hire or move
  22. Get broad charter with 6-month abandoning rather than anchored term
  23. Pay abstinent salaries with bonuses for aberrant performance
  24. Abate amount of administration staff
  25. Reward managers with banal instead of cash
  26. Trim binding allowances (deferred compensation, automobiles, club memberships, etc.)
  27. Cut managers first
  28. Pay bonuses to acreage agents first
  29. Pay raises based on merit, not amount of living
  30. Cross alternation appointment agents to annihilate acting employees
  31. No vacations during “busy season”
  32. If hiring, seek individuals whose application qualifies for tax credits
  33. Four day plan week
  34. Charge advisers for backup tools
  35. Put aggregation ID on tools, accumulate records
  36. Centralize apparatus accumulator with analysis in / out system
  37. Close abeyant companies
  38. Consider solar panels and solar baptize heat
  39. Monitor unemployment claims
  40. Consider an appointment aliment account instead of employing a janitor, or use a part-time afterwards hours person


Companies can accomplish bigger cyberbanking performance, abutment their bonding and cyberbanking and survive the anemic years by authoritative these adamant expenses.

Remember: You can’t annihilate a crank because technically they’re already dead. And you can’t get rid of anchored aerial either – but acceptable managers plan to ascendancy it.