New Bedford Management: Finance

THE BIG PICTURE

You ran for the board because things didn’t get accomplished that you thought should have. You’re brimming with great ideas and ambition, and now that you got elected, you are eager to get this stuff done.
But there’s a big unanswered question: how are you going to pay for it? If you don’t know the answer, you’re just going to go down frustration road.

BE SMART

You have to understand your financial reports and the financial goals of the building. New board members should sit down with management’s financial analyst to review the building financials. Once you understand the economics of the property, past and present, and what the future goals are, you will see that the building is not sitting on an effortlessly growing pot of gold. Capital projects need money, and timing plays a big part in that effort.

You may have to raise money, either through assessments or refinancing. Or you can tap into the reserve fund, but you need to know how it will be replenished. If new board members understand how having money can influence getting things done, it will help set realistic expectations.

Nurture new board members so they don’t feel intimidated. You don’t want to dampen their ideas and ambition, but you need them to have a good understanding of the building financials so they can achieve their goals.