| The Business Owner Toolbox Part 1: Winning Coaches Call Good Plays |
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| Written by George Hedley | |
| Wednesday, 13 June 2007 | |
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Page 1 of 2 Construction Business Owner, January 2007 Editor's Note: This is the first in our 2007 series of The Business Owner Toolbox written by our regular columnist, George Hedley. Each article is written to provide you with practical, immediately applicable business management tools to assist you on your path to building a successful, growing business.
Think back when you first started in the construction business. Your company was smaller, and things were a lot simpler. All you had to do to be successful was "bid it," "build it" and finally "bill it!" To grow your company, you just worked a little harder. To make more money, you just worked a little longer. To get some more work, you just bid a few more jobs. To keep your customers happy, you met them on the jobsite and worked things out. To get paid, you called and asked your customer when you could pick up a check. Simple!
Then things got more complicated as you got more referrals and your company grew. You hired a few people. You had a few more jobs going simultaneously. Different customers had different demands, and they all wanted your full attention. You began to struggle with the everyday tasks of running a business plus running all the jobs. Your job description changed from superintendent and project manager to-bookkeeper/office manager/customer service representative/salesman/bill collector/accountant/purchasing agent/referee.
Think about what it takes to grow and maintain a successful construction business. What are the most important aspects to building a profitable company-doing the work or managing the business? I'm sure you agree it takes both to be successful. Doing work to get your jobs finished takes precedence as phone calls, problems and challenges continually occur on the jobsite. Plus, you've got to keep all of your crews working efficiently, or you'll lose money. But to grow a business, it takes more than getting the work done.
What Plays Should I Call First? Football coaches need a playbook, assistant coaches to train their players and players to execute the plays. The head coach develops a strategy to win the game and calls the plays. In order to improve and win the game of business, you must create a game plan and then determine what plays you want to call. I hold boot camps for construction company owners who want to get their businesses to work for them. Attendees come overwhelmed and frustrated with so many challenges, problems and stresses they can't think straight. They have failed trying to fix everything themselves all at once. The first thing they say is: "Help! What should I do first?"
Take the "Business Success Test" Answer YES or NO to the following statements:
___ Our business vision is understood by all employees.
___ We have written business goals and targets for: - Sales - Overhead - Cash-flow - Profit - Equity - Wealth - Customers - Employees - Estimating - Production - Safety
___ We have a written marketing and sales plan.
___ We have an organizational chart and structure.
___ We have organizational systems to guarantee results.
___ Our financial reporting system is timely and accurate.
___ We have employee incentive and recognition programs.
___ We have an excellent management team.
___ We do excellent and on-time work.
___ We sell more than low price.
___ Our business is organized and in control.
___ My company works!
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