If it’s been a while since you really thought about the relationships that can help drive your business forward in shifting times, chances are you are due for some updates to your strategy. Subcontracting more. Paring down to a truly core team. Hiring for tech skills. Sharing profits. All are possible. Read on to explore how these strategies could help you.
Time To Re-Evaluate
What’s always worked for your construction business might not be most effective now. As you look at your fixed operating costs, it might make sense to pare down on staffing, while beefing up your subcontractor relationships. On the other hand, it may be wise to hire for one or two key roles, especially to ensure technology is well integrated and leveraged throughout your business. If you are fortunate to have some outstanding and committed team members, it may be time to seriously think about profit sharing. Construction business coach, George Headley, points out that implementing new people strategies can make a big difference toward surviving and even thriving in change-filled times, and offers these examples:
- Try subcontracting more portions of your work including self-performed labor. ….Work to cultivate a strong group of quality subcontractors who you trust and rely on….Good subcontractors are much easier to find and manage than the number of people it takes to self-perform work. Plus, when the job is complete, your payroll stops!
- Eliminate employees who are not excelling….In busy times, you can’t find enough good help. Today, you have a choice. Rate your team on an “A – B – C” scale. Keep the As, train and challenge the Bs, and replace the Cs with potential As.
- Open the books to your management team and share the financial rewards of your company’s success. A unified team focused on survival, thriving, customers, profitable sales, and working together to make a profit has a much better chance of success … .What have you got to lose, except your company, unless you try it?
As you rethink your people strategies, don’t lose sight of opportunities to truly put technology to work throughout your operations. Consider for example, that General Electric famously reduced 20% of overhead costs in just one year through improved use of technology. At Jet.Build, Adam Stark advises contractors that a “holistic rethinking” of operations requires tech savvy workers, and underscores: “technology advancements can play a critical role in empowering and rejuvenating the construction sector workforce.” As important as tech forward approaches are becoming, however, don’t forget that human connection remains vital, and is perhaps even more key then ever to running a successful business, as Matt Poepsel observes: “Technology is transforming our sites, but success still hinges on relationships. The most effective teams find the sweet spot between digital efficiency and personal interaction. Your best crew leaders know when to rely on project management software and when a face-to-face conversation will get better results.”
Good To Think About
Sometimes turtling in your shell as a business owner feels tempting, but keep in mind that new opportunities are always emerging, and can be capitalized on, even in challenging circumstances. Hedley, offers this guidance on seeking out new business opportunities:
Keep on the lookout for business ventures available at a reduced entry cost. For example, a competitor or supplier may want to sell his company, need an infusion of cash, or consider merging with your business. Also look for distressed real estate to purchase, develop, and upgrade….Get out of your comfort zone and look for new opportunities with steady cash flow and income…..The only way to succeed is to make tough decisions, be first, take a leadership role, face reality, and change the way you do business. Do more than survive. Thrive by implementing new ideas now.
Teamwork Makes The Dream Work
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