10 Steps To A Profitable Year

The year 2009 will go down as the toughest year in the construction industry in more than three decades. It will be remembered as a time marked by a challenging economy with fewer construction projects and squeezed maintenance budgets. Many owners have restructured their companies to survive during lean months so they can be more profitable during better months. Some have let go of staff and hired commission-driven sales people to help acquire new business.  

While it has been a difficult year for many, the economic projections for 2010 are more promising. Construction spending rose for the second time in three months in June as residential building increased, giving us new evidence that the housing sector may be recovering. Public construction jumped 1 percent-the biggest rise since March, according to the U.S. Commerce Department.  

Now is a great time to get your thinking cap on and review your plans for the coming year. Generating more revenues with stronger margins is probably one of your top business goals for 2010. But, how will you achieve this?

Let's create a working framework for planning and then review ten specific things you can do to focus on improving your business that will work whether times are good or bad.

First, you must be honest with yourself. Face your own reality. Then you must focus on creating clarity of purpose and direction. Understand not only where you are today, but where you want to go and by when. Conduct a SWOT (strengths, weaknesses, opportunities and threats) analysis to develop your plan.

Keeping up with changes in the broader economy, your local economy and your industry is also beneficial. Reading business and industry magazines, participating in trade association events and joining CEO and industry peer groups are good ways to stay informed and receptive to innovation and new approaches. Get clarity and develop a focused action plan. Write it out and use it daily, weekly and monthly! And finally, seek out someone you trust and respect to help provide on-going accountability. It's like going to the gym to work out-you get so much more accomplished when you have someone there to hold you accountable.

It is often impossible to focus when confronted by everyday distractions that prevent you from seeing clearly if your goals and options aren't defined.

Most entrepreneurs get into business ownership for the love of the game-the technical, appealing side of the business-not the organizing, managing and planning functions of the business. As a result, owners get so caught up in day-to-day activities, that procrastination, which is human nature, becomes the norm.