Three questions that if all owners of failed construction companies had asked themselves, they might have survived and thrived. They are simple, obvious questions, but how you answer them will determine if your construction company will stand the test of time.
There was a time when a contractor put a simple ad in the paper or a line listing in the Yellow Pages, and they would have more leads than they could handle. It was the only way to go and the contractors who insist on that and "Word of Mouth" do not survive.
Could Those Contractors Have Avoided Failure?
I believe they could have. This article explores three key questions that every contractor needs to ask themselves. They need to answer them in ways that provide a clear path to continued and future growth and success.Contractors who did not move from simple ads that had always worked and evolved a Marketing Plan made the same mistake other failed companies and brands made. They failed to Innovate, Reinvent, and Evolve by having a deep understanding of what business they were in, who and what they were competing with and by challenging themselves to understand what their real expertise was.
Ask Yourself:
- What are you offering? New construction, remodeling or service and repair?
- Who is your competition? DIY, other contractors, money homeowners for a construction project?
- What is your real competency? Residential, Commercial or both?
Challenging yourself is the key to answering these questions. Write your answers on paper or computer, sleep on them and then revisit them again and again until you get to the truth. The Truth Is Four Levels Deep!
Getting The Leads And Doing The Work Is Only Part Of The Answer
Not answering them and acting on the knowledge is one reason why so many contractors companies shrivel and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat. As a result, they miss what they could be doing to succeed and prosper over time.
Define The Type Of Contracting You Offer And Who Really Is Your Competition
It may not be the same form, structure, and category that you operate. For example, Home Depot does not see themselves as competing in the building supply business, but for a share of the home and commercial remodel and repair market. Be that homeowner doing a weekend project, Handyman Contractors, Remodel Contractors, Trade Contractors as well as other contractors and House Builders.
This approach and behavior across the organization too if they just saw themselves as fighting for a share of the building supply market
Summary
It is very easy to get caught up in the short term and what you have today. You measure your share in the very specific segment you operate in and over obsess about your immediate competition just as contractors who did not market effectively did years ago. But you need to step back and ask yourself the three key questions and make sure you answer them in a way that will define and liberate your construction company at the same time.
- What are you offering?
- Who is your competition?
- What is your real competency?
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About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
