Are You Holding Back Your Company’s Growth?

When you started your construction business, you were in control of your own destiny. You priced estimates yourself, presented bids in person, signed every contract, made all the important decisions, negotiated subcontracts, ordered materials needed, supervised most jobs, handled all the paperwork, created invoices, paid the bills, met with customers and handled all the problems. It was satisfying being the busy business owner doing everything it took to win work, build the project and get paid.

Because you were a good contractor who did excellent work and provided great customer service at a fair price, you received more referrals and landed more projects. To handle the growing volume of work, you hired a few more field workers and a young assistant supervisor. All of your employees reported directly to you and were under your constant supervision and direction. You continued to get busier and busier and, therefore, had to hire even more people to handle the multiple jobs to complete your contracts.

This cautionary tale reminds all of us that, as your company grows, you eventually reach your personal limits. Your calendar is full, your day is packed, you’re working 12 or more hours seven days a week, and it gets more stressful every day. You’re unable to keep up with all the tasks you have to manage.

When you spend all your time doing work, you get stuck and can’t grow. Most companies stop growing when the business owner reaches the maximum level of what he or she can do.

Has Your Company Stopped Growing?

Look at the many companies you do business with. Most have stopped growing at a certain size or level. Some stop at 10 employees, three crews, 25 people or, in some cases, as many as 50 or 75 workers. They’re stuck at a level that’s determined by what the owner can control, manage, handle and do. When a company reaches this point, the owner is overworked, stressed, underpaid and has little free time. Add that to the fact that the company doesn’t make enough money for all this effort, and it’s no wonder so many businesses reach a plateau.

Are You the Problem?

When all you have time for is to do work, you don’t have time to keep your company growing. This downward cycle eventually destroys a potentially great company. You can’t do more work yourself. You have to free yourself from day-to-day supervisory activities that bog you down and hold your company back. You can’t continue to hire inexperienced managers to run your projects or cheaper workers to complete required field tasks.

What Is the Solution?

To get your business growing, you must realize that the problem is likely you. You could be holding your company back with an overbearing, controlling management style and your unwillingness to delegate most decisions to key managers. Again, look at successful companies who continue to grow and succeed. What do they do that your company doesn’t?

Successful construction companies have a strong, experienced management team of key leaders who know how to run a business, manage projects and supervise productive crews efficiently. The owners of these top companies do not negotiate subcontracts, supervise the work, schedule crews or equipment, order material or get involved at the project level. The owner, however, does manage the management team to keep them accountable for achieving desired results needed to hit company goals.

Grow Your Business

When I coach small- to medium-size construction company owners, the first step is to determine the growth barrier that exists in their business. They generally have a “lack of the right people.” It could be a weakness in accounting, estimating, office management, project management, supervision or out in the field. Take a hard look at what you need to free you up and get you out of “do” mode. Where can you delegate activities to experienced professional managers who can get things done right without your constant supervision?

Great companies have accountable project managers, detailed contract administrators, experienced supervisors and take-charge foremen who get things done per the contract, on time and under budget. Where is your weakness? If you don’t fill the void and cut out the deadwood in your organization, you will never get out of the “do” role.

To grow, you must have a business development strategic plan, marketing plan, sales plan and an activities calendar that lays out all the sales and marketing activities for the year. Also, pinpoint a customer target list. With each of these targeted customers, you need a detailed action plan to stay in touch and convert them from first-time customers to loyal regular clients. To help you get started, email [email protected] to get your copy of “Winning Ways to Win More Work!”