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petitioner provided high-quality work, the developers would
continue to hire petitioner year after year.
Ginger realized that working with the large developers was
essential to petitioner's success. The large developers were
building entire housing tracts, and they were the most reliable
source for a steady volume of masonry projects. Ginger also
realized that, in order to work with large developers, petitioner
would need a lot of equity to meet its operating expenses.
Ginger knew that some large developers would wait 90 to 100 days
before paying the masonry contractor. The large developers
wanted contractors on the job that could complete the project, on
time, without problems. As a result, the developers avoided
contractors with insufficient resources. Ginger consulted with
petitioner's accountant, Gary Christenson (Christenson).
Christenson advised Ginger that petitioner would have to
accumulate substantial amounts of working capital and maintain
strong financial statements before it could work with the large
developers. Thus, in the years 1985 through 1989, Ginger's first
priority was to grow petitioner to an acceptable size; to this
end, he took less compensation in order to speed the process of
reaching petitioner's capitalization goals.
Ginger's insight proved accurate, and petitioner began to
develop a good reputation among the residential developers.
After winning the trust of the residential developer, the
developer would often contact Ginger directly to get a
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Last modified: May 25, 2011