To start building a construction business that works, list and identify all the things that don’t work well in your company. Then, look at this list of features and characteristics successful construction companies maintain. Select from the following the top priority improvement initiatives your company needs to implement which will immediately improve results.
1. Maintain, update, implement, and accomplish a 5-year strategic business plan:
a. Communicate and enforce the vision, core values, mission, and principles.
b. Set, update, track, review, and achieve targets and goals for sales, profit, and growth.
c. Manage continuous improvement initiatives to keep your company growing and improving to a higher level.
d. Continuously reinvent, innovate, disrupt, and develop new strategies for sales, profit, management, and growth.
2. Achieve high margin results:
a. Grow equity and develop enough working capital to handle cash-flow.
b. Know and track the numbers and job costs weekly and monthly.
c. Determine the right overhead and profit markup based on job size and competition.
d. Develop accurate labor, equipment, and production rates.
e. Implement weekly field job-cost scorecards to complete jobs on-budget.
f. Calculate accurate estimates with no missing items.
3. Provide effective leadership and proactive management:
a. The successful company produces excellent results without the owner’s constant supervision, scheduling, decision making, and hands-on involvement, or micro-management.
a. Leaders provide regular leadership, inspiration, motivation, and communication.
b. Build and manage an accountable take-charge management team responsible for achieving company results.
c. Managers meet with their direct reports weekly to monitor activity, results, and performance.
d. Hold all-company meetings quarterly to communicate vision, results, opportunities, and updates.
e. Leaders hold people accountable, delegate, let go of control, plan, motivate, recognize, praise, inspire, and encourage people.
4. Maintain, monitor, and enforce systems and organizational structure:
a. Implement and maintain systems and strategies to stay organized and in-control.
b. Enforce a companywide playbook for systems, processes, and procedures.
c. Design your organizational chart with a clear chain of command for results and growth.
d. Develop and enforce job descriptions with expected results, clear responsibilities, and deadlines.
e. Utilize the latest technology and software available to produce efficiency and improve results.
f. Ensure you’re using professional administration, accounting, and software.
g. Hold regular meetings for management, sales, estimating, project managers, supervisors, production, logistics, crews, customers, and projects
5. Achieve excellent construction results and performance:
a. Maintain and enforce written operational, project management, field, and production systems and standards everyone follows.
b. Produce accurate estimates with a high Bid-Hit-Win ratio.
c. Complete projects on time and on budget without profit-margin fade.
d. Produce quality work with no punch-lists or call-back items.
e. Maintain a proactive safety program with no accidents or incidents.
6. Mentor and maintain top talent and teamwork:
a. Build a great place to work which attracts and maintains top talent.
b. Maintain a talent development program to attract, recruit, develop, train, and retain top talent.
c. Build capacity for the current workload and additional future work.
d. Implement employee compensation, benefits, and incentive plans to attract and retain the best people available.
7. Grow company revenue, sell, and win high-margin contracts and customers:
a. Maintain a proactive, written and monitored sales, marketing, and business development program with a customer target list.
b. Implement an effective estimating strategy to win the right customers, projects, and opportunities with the highest profit potential.
c. Regularly spend quality time with customers to build trust, develop loyal relationships, and earn referrals.
d. Stop chasing low-margin bid work and set your company apart from the competition
8. Develop wealth-building investment opportunities:
a. Maintain an investment program to build ongoing passive income.
b. The company should allow the owner to have lots of freedom, personal time, investments, and a balanced life.
You’re aware of what you must do to build a great company that works for you. Stop accepting less than you want. Now’s the time to achieve results. Start with a few improvement initiatives and commit to make it happen!
about the author
George Hedley CPBC is a certified professional construction business coach, consultant, and speaker. He shows contractors how to double their profits, grow, get organized, and get their company to work like a machine! He is the author of Get Your Construction Business To Always Make A Profit! available on Amazon.com. To talk, start a personalized BIZ-BUILDER program, or get his free e-newsletter, email gh@hardhatbizcoach.com. Visit his YouTube channel to watch his videos. To download online courses or get his contractor templates, visit www.constructionbusinesscoaching.com.