Can you earn more when your job schedule is crammed with projects?
Remember when the economy was slow? Contractors tried to keep work crews as busy as possible while simply breaking even.
As things began to heat up in the economy they started taking on more work while keeping a cap on the number of workers… more jobs – same workers = bigger profits. At least that was the thinking.
Do more profits naturally come from more work?
Running a construction company is difficult on a good day but if key staff is stretched too thin, quality suffers. Why? Because they don’t have the time to properly plan, schedule, adjust for surprises, interface adequately with clients, take care of change order approvals before the work begins, documenting issues with the project, and adequately managing the team.
And if you’re the one handling those details without help, it becomes difficult to invest the necessary time to find better clients with deeper pockets. If you’re too busy you might make snap decisions including saying “yes” to a client when you really should have said “no” resulting in cost overruns that you might have to absorb.
All of this creates a ton of stress for both managers and workers alike. Stress can create an environment for worker injuries and run the risk of losing key team members as they seek greener pastures.
So how do you create greater earnings? Check out these quick tips:
- Have a plan to invest strategically in help before things get too crazy. If your construction company is growing and if you prize excellence and a sterling reputation that you can bank on, making sure you have help to take care of the details is critical.
- Have a plan to invest in workers. Are you realistic about profits or perhaps taking more out of the company than you should? Talk with your team and work with them to make sure you grow your workforce efficiently so that you can handle the workload.
- Pledge to fix self-inflected wounds. Construction company owners can become their own worst enemies. Rather than building a team they can trust to take on the work, they might micromanage or take on more of the work themselves as a way to squeeze more profits out of the work. It’s important to learn how to delegate.
- Control your bids. You need to have confidence in your specialties and have a plan to protect yourself from taking on jobs that are outside the scope of your typical contract. That means bidding on projects that fit your capabilities rather than taking a swing at any and all projects that may come your way.
- Make the time for regular meetings with your team. Take the time to make sure projects are flowing smoothly, that they have adequate resources, that clients are happy, and that workers have what they need to be as productive as possible. Listen to your team and take appropriate action. This can go a long way to improving morale.
- BONUS TIP: Be sure to check with your insurance specialist to find out how they can help you mitigate risks as you grow your construction company.
By handling these details appropriately you’ll make sure you have the right work you can best handle and that the projects you complete will result in satisfied clients and more referrals which in turn will generate better long-term profits.