How Can You Change the Odds in Your Favor?

According to the US Department of Commerce, 96% of construction companies fail within the first 10 years. This is a higher failure rate than any other kind of business.

If you’re in construction…this is a problem.

Having been in construction for more than 40 years, I became aware of the problems and began to understand them. I gathered information and learned how to implement it into my business.

That’s why I beat the odds.

I’ve learned a lot over those forty-plus years and here are 7 reasons that construction companies fail.

A Plan is Only Good if You Use it.

The past couple of weeks we’ve discussed how important the Production Tracker tool is and how it can help you see the future of your business.

Building a construction business is no different than building a building. If you don’t have a plan, you won’t know what to do. You will just be guessing.

If you don’t have the right tools and know how to use them, it will be a lot harder to build anything.

The Production Tracker is one of those business building tools.

Trust me, it doesn’t take any magic.

Last week we talked about what the Production Tracker is and what makes it an important tool to have in your business building toolbox. I also pointed out how most people operating construction companies hate paperwork, but how important paperwork is to build a successful business.

It’s amazing how people in construction will use all sorts of power tools and equipment but not paperwork.

Because it Helps Keep Your Business Balanced.

Recently we discussed the importance of keeping your construction business from getting out of balance. Achieving a balanced business requires paperwork and we know how construction contractors feel about paperwork.

I know, I know, paperwork is not a very exciting topic, but neither is concrete. And we all know how important concrete is in supporting a building. The same is true for paperwork and your business.

One of the three foundational piers in business is administration and finance. One of the building blocks in that pier is a Production Tracker. This tool provides valuable information for forecasting the company’s financial needs and production plans.

You Have the Power of Choice.

There’s a saying, “A rut is a grave with both ends kicked out.” Too often we get in a rut and don’t even realize we’re there.

This is how operating a construction company can be.

Plodding back and forth, doing all those things that need to be done, never looking up to see where we are or where we’re going. If we’re not careful the rut will get so deep that we’ll never get out.

This feeling of being stuck can be overwhelming. If we wait too long to do something, that’s when it becomes a grave, and we give up and go out of business. It’s just not worth it.

That was never my plan.

Most people in construction would not consider themselves entrepreneurs. They see themselves as self-employed.

There’s not a huge difference between the two, but it is significant.

It’s the difference between working in your business or working on your business.

Wow, a lot more than I thought!

Recently I’ve been extremely busy and working hard trying to get things done. I know that the length of my list is my choice. Busy lives are nothing unusual, especially for those of us working in construction.

So, how can we be more productive and decide what things on the list are the most important? The answer to this question will be different for each of us, but it’s something we have within our control if we just do something.

Listen to this week's podcast to learn more about how to prioritize your schedule!

To build the business of your dreams you must take action.

For years people have asked me where I came up with the business system and procedures that I use. As I thought about it, I realized that early on my business and life had developed without much intentionality.

I was a dreamer at an early age. I had big ideas and plans for my life. Then there was a portion of my life where I became disillusioned and accepted that my dreams were just that…dreams.

Listen to this week's podcast to learn how to take action in building your business!