Are you a Small Construction Business Owner or Manager Facing Business Nightmares?
READ THIS SPECIAL REPORT & TAKE THE $100,000 CHALLENGE BELOW TO ELIMINATE BUSINESS NIGHTMARES!
This is an Extensive Special Construction Report that can save your business from Business Failure. Add tens of thousands of dollars to your bottom line. And double your business revenue within 12-18 months.
The Small Business Administration (SBA) identifies a huge failure rate among start-up companies:
- Roughly 20 percent fail in the first year
- Roughly 50 percent fail within five years
- Roughly 66 percent fail within 10 years
Construction companies have an even uglier track record. Roughly two-thirds go out of business within five years.
The owners of those failed companies tend to point fingers at external factors such as insurance, taxes, politics, an inability to get enough workers, etc. But those factors aren’t really the cause of company failures, which is why the competitors down the street seem to be handling them just fine.
In reality, the real causes of construction company failure are within the control of the company owner. That doesn’t mean these causes are always easy to fix. It takes planning, discipline and hard work. But nonetheless, they are controllable.
Any contractor on any project can experience problems. But small contractors bring a particular set of challenges to the business and on the job site. If they don’t take the right steps to overcome those challenges, they can easily cause headaches for everyone – including their business, their clients and other contractors and subs on a job.
Being a small contractor isn’t a problem in itself. Contractors of all sizes can run into issues with workload, cash flow, or business practices. But with fewer staff and resources available, smaller contractors can quickly end up in a situation that gets out of their control. The solution lies in anticipating these problems and protecting yourself, the company that hired you, and the jobsite itself from the potential fallout.
The US construction industry is one of the biggest industries worldwide, having an annual expense of over $1,293 billion. It contributes an essential percentage to the country’s GDP value, helping it expands and drives up the US economy.
The construction industry is known for its traditionally low margins- According to Deloitte, globally, earnings before interest and tax on construction activities is just 5.5% so even the smallest mistake can make or break the project.
Projects are becoming increasingly more complex yet the schedules keep shrinking. It’s no wonder that McKinsey & Company found that 98% of megaprojects experience delays.
Workers shortage: AGC reported that 80% of construction companies cannot find the workers they needed. KPMG found that 78% of engineering and construction companies believe that project risks are increasing.
However, many issues and challenges creeping up hindering construction businesses from growing and expanding. Most of these challenges are easier to overcome if contractors begin finding ways to remove inefficiencies internally and externally.
In working with construction companies for over 30+ years, I’ve assembled this Special Report of reasons for the “Nightmares of Construction Company Failure”. I have also provided various solution to “Eliminate the Nightmares of Construction Company Failure”. Interested?
This is an Extensive Special Construction Owner Report that can save your business from Business Failure. Add tens of thousands of dollars to your bottom line. And it can double your business revenue within 12-18 months.
- Help you get paid faster
- Make the right financial decisions
- Make smarter financing choices
- Prevent failure in Your construction business
- Improve company credit & collection processes
- Keep your business in business in Economic booms & recessions
- Eliminate poor estimating & bidding
- Improve accounting
- Improve prequalifying your customers and subcontractors
- Improve legal requirements like contracts, preliminary notices, stop notices
- Protect your right to file mechanics liens, end litigation, seek arbitration, etc.
- And eliminate many construction business nightmares
Formula to Get Anything You Want
First. Fix in your mind the exactly what you want or the amount of money you desire. It is not sufficient merely to say “I want plenty of money. “Be definite as to the amount. (There is a psychological reason for definiteness which will be described in a subsequent chapter).
Second. Determine exactly what you intend to give in return for what you want or the money you desire. (There is no such reality as “something for nothing.)
Third. Establish a definite date when you intend to possess the money you desire.
Fourth. Create a definite plan for carrying out your desire, and begin at once, whether you are ready or not, to put this plan into action.
Fifth. Write out a clear, concise statement of what you want or the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it.
Sixth. Read your written statement aloud, twice daily, once just before retiring at night, and once after arising in the morning.
NOTE: It is important that you follow the instructions described in these six steps. It is especially important that you observe, and follow the instructions in the sixth paragraph. You may complain that it is impossible for you to “see yourself in possession of what you want or money” before you actually have it.
Here is where a BURNING DESIRE will come to your aid. If you truly DESIRE something or the money so keenly that your desire is an obsession, you will have no difficulty in convincing yourself that you will acquire it.
The object is to want something, and to become so determined to have it that you CONVINCE yourself you will have it.
To the uninitiated, who has not been schooled in the working principles of the human mind, these instructions may appear impractical. It may be helpful, to all who fail to recognize the soundness of the six steps, to know that the information they convey, was received from Andrew Carnegie, who began as an ordinary laborer in the steel mills, but managed, despite his humble beginning, to make these principles yield him a fortune of considerably more than one hundred million dollars.
If you want help applying this formula contact Michael at 650-515-7545
Running a successful construction company isn’t easy. The industry is full of risks can challenges that can lead to failure. According to data from BizMiner, of the 1,021,350 building, heavy/highway, and specialty trade contractors operating in 2014, only 722,281 were still operating in 2016. That’s a failure rate of nearly 30%. Let that sink in for a bit.
There are literally hundreds of reasons why construction companies fail and have to close up shop. When construction companies fail, it’s typically not caused by a single issue. In most cases, there are a number of contributing factors and missteps that led to their failure. While outside factors can play a role, just look at the Great Recession, most companies fail from within.
Here are some of the common root causes of construction business owners nightmare of failure. Many of these nightmares s lead to over 30% of construction companies going out of business annually.
- Capital & Cash Flow
- Project Performance
- Failure to Plan
- Growing Too Fast
- The Wrong People
- Failure to Innovate
- Failure to Proper Plan
- Unreliable Employees or Subcontractors
- Don’t Underestimate a Project
- Failure to Prepare for the Unexpected
- Unclear Specifications
- Failure to Factor in Delays
- Failure to Prepare for Financing Issues
- Poor reputation
- Making errors when pricing a project
- Theft and fraud
- Over capitalizing the company
- Working for the wrong client
- Buying businesses without doing proper investigations
- Becoming too dependent on a particular customer or market
Running a successful construction company isn’t easy. The industry is full of risks can challenges that can lead to failure. According to data from BizMiner, of the 1,021,350 building, heavy/highway, and specialty trade contractors operating in 2014, only 722,281 were still operating in 2016. That’s a failure rate of nearly 30%.
Let that sink in for a bit.
There are literally hundreds of reasons why construction companies fail and have to close up shop. When construction companies fail, it’s typically not caused by a single issue. In most cases, there are a number of contributing factors and missteps that led to their failure. While outside factors can play a role, just look at the Great Recession, most companies fail from within.
Many construction companies fail every year. Managers become complacent, the company grows too quickly, sometimes greed plays a part, managers forget the basics, they don’t have proper systems in place, we employ the wrong people, even lose our capable employees, or managers and owners are so focused on the business they aren’t aware that the world around them is changing.
Don’t let your company become another statistic in the list of failed construction companies.
What actions will you take to ensure your business won’t suffer the nightmare of fail?
To help to solve these problems we wrote this message to help overcome some of your potential construction business nightmares.
What’s the biggest nightmare you face?
In this message, we’re outlining the answers that you have been looking for, particularly for the top most significant issues you often face alongside other construction professionals over the years.
There are several different approaches to construction issues. For example, solving as a multitude of different problems – including communication problems, scheduling problems, problems with documentation, and so on.
Take the FREE $100,000 Challenge and Analysis of Your Company to Eliminate Your Nightmares!
Does Your Company Suffer any of the Nightmares Construction Owners Generally Suffer?
TAKE THE $100,000 CHALLENGE PART 1 Profitability Improvement Assessment
The $100k challenge is an assessment that we do with you where we can find any construction business owner $100,000 or more in their business without them spending an additional dime on marketing or advertising guaranteed.
Complete the Profitability Assessment Below by answering the following 3 questions:
Question 1: Your average number of clients. Answer: _______________
Question 2. The average amount your clients spend with you. Answer: _______________
Question 3. The frequency the average client buys from you. Answer: _______________
TAKE THE $100,000 CHALLENGE PART 2 – Nightmares Assessment
Review each question, answer the question and contact us so we can do a FREE Discovery Session with you to help eliminate your nightmares. Also consider your goal for each question and finally the cost of these nightmares to your business and what your goals for resolution should be for your company.
Do you have any of these nightmares?
Nightmare #1: The workload is too big? Yes: __ No: __
Nightmare #2: Not enough money to last through payment delays? Yes: __ No: __
Nightmare #3: Lack of knowledge (business, legal, etc.)? Yes: __ No: __
Nightmare #4: Other Contractors? Yes: __ No: __
Nightmare #5: Operating Capital and Cash Flow? Yes: __ No: __
Nightmare #6: Issues with cash flow? Yes: __ No: __
Nightmare # 7: Planning and Growth? Yes: __ No: __
Nightmare #8: Project Complexity? Yes: __ No: __
Nightmare #9: Keeping up with compliance regulations? Yes: __ No: __
Nightmare #10: Working on a schedule? Yes: __ No: __
Nightmare #11: Slow technology adoption speed? Yes: __ No: __
Nightmare #12: Communication problems? Yes: __ No: __
Nightmare #13: Managing your documentation? Yes: __ No: __
Nightmare #14: The problem of “pointing fingers”? Yes: __ No: __
Nightmare #15: The lack of a skilled workforce? Yes: __ No: __
Nightmare #16: Problem with equipment management? Yes: __ No: __
Nightmare #17: Unreliable subcontractors? Yes: __ No: __
Nightmare #18: Scheduling? Yes: __ No: __
Nightmare #19: Lack of skilled workers? Yes: __ No: __
Nightmare #20: Vandalism/theft on site? Yes: __ No: __
Nightmare #21: Irregular equipment maintenance/replacement? Yes: __ No: __
Nightmare #22: “Forgetful” clients? Yes: __ No: __
Nightmare #23: The lack of reliable subcontractors? Yes: __ No: __
Nightmare #24: Poor Productivity? Yes: __ No: __
Nightmare #25: Rising Cost of Materials? Yes: __ No: __
Nightmare #26: Poor Project Performance? Yes: __ No: __
Nightmare #27: Going Over Budget? Yes: __ No: __
Nightmare #28: Failing to Deliver on Time? Yes: __ No: __
Nightmare #29: Lack of Skilled Workers? Yes: __ No: __
Nightmare #30: Skilled Labor Shortages? Yes: __ No: __
Nightmare #31: Lack of Communication: Yes: __ No: __
Nightmare #32: Unreliable Subcontractors? Yes: __ No: __
Nightmare #33: Scheduling? Yes: __ No: __
Nightmare #34: High Insurance Costs: Yes: __ No: __
Nightmare #35: Changing Minds of Project Owners or Homeowners? Yes: __ No: __
Nightmare #36: Available Cash? Yes: __ No: __
Nightmare #37: Document Management? Yes: __ No: __
Nightmare #38: The Blame Game? Yes: __ No: __
Nightmare #39: Ever-changing Regulations? Yes: __ No: __
Nightmare #40: Capital? Yes: __ No: __
Nightmare #41: Right Business? Yes: __ No: __
Nightmare 42: Cash Flow? Yes: __ No: __
Nightmare #43: Quitting Another Career? Yes: __ No: __
Nightmare #44: Too Many Competitors? Yes: __ No: __
Nightmare #45 Hiring Employees? Yes: __ No: __
Nightmare #46: Finding Customers? Yes: __ No: __
Nightmare #47: Time Management? Yes: __ No: __
Nightmare #48: Delegating Tasks? Yes: __ No: __
Nightmare #49: Finding Business Partners? Yes: __ No: __
Nightmare #50: Choosing What to Trade or Niche to Sell? Yes: __ No: __
Nightmare #51: Strategies for Market? Yes: __ No: __
Nightmare #52: Strapped Budget? Yes: __ No: __
Nightmare #53: Self-Doubt? Yes: __ No: __
Nightmare #54: Safety? Yes: __ No: __
Nightmare #55: Technology Adoption? Yes: __ No: __
Nightmare #56: Poorly defined goals? Yes: __ No: __
Nightmare #57: Problems with risk management? Yes: __ No: __
Nightmare #58: Unclear scope of a project? Yes: __ No: __
Nightmare #59: Issues with stakeholders’ expectations? Yes: __ No: __
Nightmare #60: Lack of technological progress adoption? Yes: __ No: __
Nightmare #61: Productivity problems? Yes: __ No: __
Nightmare #62: Safety concerns? Yes: __ No: __
Nightmare #63: Labor problems? Yes: __ No: __
Nightmare #64: ___________________Yes: ___ No: ___
Contact with your answers when completed and receive a FREE Discovery Session to help eliminate any possible company nightmares.
Part 3 of the $100,000 CHALLENGE SOLUTION
If you really want your business nightmares eliminated review the rest of this article. Contact us.
Consider some of the most significant nightmares your company may suffer
Nightmare #1: The workload is too big
One of the primary problems that many contractors face, especially when times are good, is a lack of capacity. You just don’t have enough time, or enough staff, to complete every job available. With a limited workforce, a company can only do so much work.
If you’re a contractor with a small staff, or you have multiple projects going on at the same time, you may not be able to perform at the pace required to keep those projects on schedule. Don’t assume that you can take on a big job and hire as you go. It can be difficult for companies to find and hire skilled labor on short notice. Construction companies across the country are having to get creative to overcome the current labor shortage.
Solution 1: Bite off projects that your workers can chew
The construction industry has a high rate of business failure – and probably not because contractors they turned down work. It’s more likely that they derailed because they tried to grow too fast.
It’s important for small contractors to learn to say “no” when reviewing potential projects. If you take on too many projects or a project that’s too big, your employees can quickly feel overworked. And you want to keep them as happy as possible. The labor shortage means everyone is looking for skilled workers; they don’t have to go far to find a new job.
Nightmare #2: Not enough money to last through payment delays
Another issue small contractors face is a lack of money, including access to sources of credit. It’s tough enough for contractors to manage cash flow, even those with deep pockets.
Many small contractors go out of business because they try to grow more quickly than their pocketbook allows. They bid on a project that promises a huge payday, but requires them to spend more money than they currently have.
83 days: That’s the average time it takes to get paid in construction, according to PWC. That’s nearly 3 months. As a result, contractors of all sizes are struggling to weather the delay. In a national survey of over 500 contractors, 51% said they have had to use business savings or a line of credit to make ends meet on a project. Even more worrying, 34% said they had to dip into personal savings or go into debt in order to survive long enough to get paid.
Small companies are less likely to have the bank account or creditworthiness to get a lot of cash quickly. And contractors need a significant amount of cash to start a new job. Nowadays, contractors can’t rely on a down payment to get started. In the survey, fewer than 1 out of every 20 contractors say they get paid an upfront deposit. To make matters worse, most say that retainage is regularly withheld on projects – that’s 5-10% of the contract total that you’ll have to wait for even longer.
Research Summary. The construction industry is a vital part of the U.S. economy. However, success in this industry naturally comes with a number of challenges, and the COVID-19 pandemic has only added to these. Here are some statistics about the U.S. construction industry: See: https://www.zippia.com/advice/us-construction-industry-statistics/
Costs to Take Note of That Can Affect your Overall Profit Margin in Your Construction Business
When construction companies prepare their bid for contracts, they typically look at a lot of costs including the overhead and profit of the project. They also have to take note of labor, materials, equipment costs, bonding, supplies, and every other cost associated with the execution of the project.
Overhead is one of the costs to take note of when running a construction business. These costs are rent, support staff, insurance, tools, bookkeeping, legal costs, owner’s salaries, debt payments, and other costs associated with operating the business.
Profit is what remains when you subtract job costs and your job overhead. This profit is the reward of the construction company. It is what allows the business to grow and make investments in itself. Without a construction company earning a reasonable level of profit, the business will be in trouble.
Types of Profit in the Typical Construction Business
There are various types of profits that come into play when you think of the construction industry. What are your profits in each of the following areas?
- Adjusted Contracted Revenues?
This is one of the costs construction industries incur that other industries don’t usually have to go through. The adjusted contracted revenue means that a set amount can be earmarked for a contract, but when the buyer and the contractor go to the closing table, the contracted price is reduced.
In new home construction, this runs around 9 to 11% of the contracted price. For remodelers, restoration contractors, and those contractors doing additions, this runs less than 2%. This is mostly due to allowance issues.
- Gross Direct Profit (Direct Margin)?
This is the dollar value of the adjusted contract price less the actual direct costs of construction. These costs include land, materials, subcontractors, labor, and other direct costs (permits, insurance/bonds, engineering, site utilities etc.).
- Gross Indirect Profit (Gross Margin)?
This equals the direct profit less the indirect costs of construction. Indirect costs are those costs associated with construction but cannot be directly assigned to a particular project. Examples include management, transportation, communications, workman’s compensation insurance, payroll taxes, equipment, tooling and supplies.
How to calculate the income of a construction company?
To calculate the income of a particular company providing construction services, you must perform the following steps:
- The profit from the delivery of the object to the customer is determined. For this, value added tax and the actual price of building materials are deducted from the contract value.
- After that, gross profit is calculated by subtracting the revenue from the services rendered and their cost for a certain period.
- The book profit is calculated, which includes the profit from the sale of property, products and auxiliary production, and services, net of other income and expenses.
- Net profit is the amount of money left after paying all taxes.
- Depending on the turnover and size of the company, net profit can range from tens to hundreds of thousands of dollars a month or more.
What is the Average Profit Margin in the Construction Industry?
In 2013, contractors were seeing a commercial profit margin of 2.96% on average. However, in busy years like 2018, the figure seemed to go higher than in slower years. This however means that the profit margin in this industry is generally dependent on how busy the industry has been.
With the rise in construction works the world over, about 54% of contractors expect to see their profits rise over the next year, and 29% of contractors expect to see a 7% increase in profits or higher.
From the new home builder to the re-modeler, a reasonable profit given the risk is usually pegged at 9%. This is the take home or actual bottom line profit; the amount that is left at hand after taxes for the business. It does not include a reasonable salary to the owner for his management role.
So why should the profit be 9%? Well, this is the necessary profit to reward the owner(s) for starting and assuming the responsibility of owning the company. A reasonable expectation of any construction business owner is 3 to 5%. If a typical small contractor has adjusted sales of $1,200,000 per year, then he or she is looking at about $36,000 to $60,000 for owning the business.
Solution 1: Start small to control your cash flow
To paraphrase Lao Tzu, “A journey to a thousand construction projects begins with a single nail.” If you start by taking jobs that you can afford to lose, your wallet won’t be as stressed if you don’t get paid right away. You’ll also be in a better position to practice good cash management (see problem #3).
Solution 2: Build communication habits that help you get paid faster
Being seen on the job site can be difficult, especially if you were hired by a subcontractor (or a sub-subcontractor). The contractor that hired you probably didn’t tell you who the GC or property owners are, even though they are the ones who will ultimately be paying you.
Send a preliminary notice and other visibility documents on every job. And not just to protect your lien rights. A preliminary notice is more likely to get the attention of the GC and property owner, so they sit up straighter when your invoice comes across their desks.
Even if your project is in a state where preliminary notice isn’t required, there are lots of reasons to use them.
Solution 3: Understand your real profit
RULE #1: Always KNOW Your Real Costs & Your Average Profit Margin on Each Project. Rule #2: Do Not Lose Money! Each company is different.
Nightmare #3: Lack of knowledge (business, legal, etc.)
To run a construction business, it’s not enough just to know how to lay a foundation or weld a steel beam. You need to know how to estimate and price a job to make sure you cover material and overhead costs, employee salaries (not to mention schedules), and make a profit. It can take time and experience to learn the pitfalls of accounting in construction projects, and how to avoid them.
In a small construction business, the person who runs the back office often wears several hats (lots and lots of hats). They’re often expected to be a lawyer, COO, and psychiatrist – but without all of the degrees.
Solution 1: Get your staff some training
At the very least, the Office Manager should have a solid understanding of human resources, accounting, and legal requirements that affect the construction industry. Check with your local community college or trade school – they often have affordable classes with flexible schedules for adults with a day job. Many construction associations offer training and education opportunities as well.
Solution 2: Get expert help with confusing or time-consuming tasks
In business, there’s something called the ‘Pareto Principle.’ It’s also known as the 80/20 rule. The rule basically says that we spend 80% of our time on activities that make up 20% of our income. It works in reverse, too – we spend 20% of our energy on activities that account for 80% of our earnings. Small contractors should be focusing on what they do best – planning, creating, building – and getting help with the rest of the complex issues.
Take getting paid, for example. The Office Manager is probably quite comfortable creating and sending invoices. They probably have legendary time management skills – more than enough to create a calendar reminder to follow up on unpaid invoices.
But if that invoice goes unpaid – what’s next? Did your office staff know about the documents they needed to submit in order to protect your lien rights? Do they understand the state requirements for actually filing a lien on a property?
Filing a lien isn’t rocket science, but it’s also crucial to get the details right. By using a lien filing service to do the research, double-check information, file the lien, and track documents, you can lift a huge weight off of your Office Manager’s shoulders.
Many small contractors seek help getting paid faster. Others might benefit from a part-time construction accountant, or a lawyer that can double-check a contract. Understanding the limitations of your own knowledge is the first step in overcoming it.
Nightmare #4: Other Contractors
Sometimes, the challenge isn’t you at all – it’s the company that hired you. Some contractors communicate terribly, write bad contracts, and use unfair payment practices. They use retainage as a weapon and tack on back charges so there’s nothing left for you to get back.
Solution: Get to know the contractor
Create a prequalification process to gather information on contractors before you even bid on a job. Get to know as much about a company, their management team, and their payment practices as soon as possible before working with them.
The prequalification process may include a list of questions to ask the contractor, or company details that you can find online. Visit their Contractor Profile to find out if they have had a lien filed against them, or to read customer reviews about their payment practices. If the contractor has a long history of late or non-payments, you may want to pass on that project.
After a job is over, you can use the same Contractor Profile page to leave your experience to help others – whether that payment experience was good or bad. Because to build a successful construction business, it’s just as important to find the good apples as it is to avoid the bad ones.
Nightmare 5: Operating Capital and Cash Flow
To operate any business, you need capital, especially for larger, profitable projects. This becomes difficult if there are problems in your cash flow or a critical client doesn’t pay in a timely fashion.
The best thing you can do is to create and then stay on top of a good business process that flows from collecting information on your job sheet before a project begins to sending out correct and timely invoices to following up on invoices regularly. Good cash flow makes it easier to have, or obtain, the operating capital you need.
Nightmare #6: Issues with cash flow
As a construction company, you have to have free cash to pay for several things on a semi-regular basis. This list includes payments to subcontractors, vendors, suppliers, your employees, and so on. However, it’s quite likely that you’re going to get a payment for a project well done only once – after the project in question is completed.
Funds management is a surprisingly common problem for many construction companies, and the number of issues that this can spawn is also impressive.
The only viable solution for these kinds of issues, aside from “getting a steady cash flow” (which might not be feasible in some cases), is to have an open business credit line for “worst-case scenarios” or to get through that challenging period between your bills being due and your project is completed and paid for.
Financial questions are not the only ones you have to deal with when working on a construction project. Another relatively frequent problem comes from the unwillingness of people to take the blame for anything.
Nightmare # 7: Planning and Growth
Growing a business is a complex process where you have to balance your growth, abilities, and cash flow. Good planning makes it easier to grow without overextending yourself in any one direction. You should also review your plan regularly to make sure it’s still feasible. If you’re willing to make changes to adjust to reality, then you’re more likely to succeed long term. Learn from your mistakes and keep moving forward.
Similarly, growing too quickly and taking on work too far outside of your comfort zone or ability to manage can also create problems for your business. If you’re growing rapidly, take the time to set up good business processes, controls, contracts, and personnel. A little time invested now will make your growth much smoother.
Nightmare # 8: Project Complexity
Opportunities to grow in the construction industry often come with being involved with larger and more complex projects and companies. With already thin profit margins, an unexpected hiccup by someone else on the project can create a ripple effect for all companies contributing to the final effort. With projects not being completed on time and on budget, it hurts the companies that are contributing time and materials and waiting for their payments.
Nightmare #9: Keeping up with compliance regulations
Technology is constantly changing and evolving, and various rules and regulations have to keep up with it. Keeping up with all that is not an easy task, especially since many companies are affected by many different levels of regulations. This includes worldwide compliance rules and country-specific laws and regulations, or even something extremely local and specific for one state or a single city.
It’s not uncommon for regulation update messages to get lost and unnoticed in a daily flood of work-related mail. And yet, compliance breaches due to unnoticed changes can easily turn out to be disastrous for most companies.
It’s a good practice to try and reroute regulation-related messages to a specific place where you can find them easier. Additionally, some people tend to dedicate a part of their day to catch up with regulation updates and rule changes.
Nightmare #10: Working on a schedule
While the experience does matter, it’s not uncommon for even the most knowledgeable professionals to make mistakes when scheduling if managed manually. This is a problem that modern-day technology can mitigate to the highest degree, with various automation systems, project management applications for different devices, virtual task boards, and so on.
This is one of many problems that modern technology and its advantages are either partially or entirely solvable. However, this list would not be that long if it wasn’t for another massive problem that the entire construction industry has been dealing with for a while now.
Nightmare #11: Slow technology adoption speed
The majority of the construction industry has a notoriously lousy technology adoption speed, and the problem has remained chiefly for several years now. Even though many business owners can acknowledge various benefits that newer technologies are capable of providing, it’s still fairly common for technological departments of construction businesses to have relatively small budgets.
There are many different departments and advancements that are rarely being used by a lot of companies, including:
- Internet of Things;
- Drone surveillance;
- Robots, and more.
What’s ironic is that these technologies are extremely useful at counteracting some of the oldest problems in the construction industry. One of these problems is scheduling – but it’s not the only one on the list.
Nightmare #12: Communication problems
A surprisingly high percentage of problems within a construction project is directly related to the lack of faster communication between different teams and departments. This is another massive problem that is easily solvable by modern-day technology in multiple ways.
For example, your workers’ smartphones can be used to make the communication process that much faster (since there are billions of people that have access to a personal smartphone in the world) – be it via emails, regular messages, or even using various construction-related apps.
This can easily prevent most of the more minor problems in the project before they become more prominent and harder to deal with. And it’s also one more example of technology bringing massive potential benefits to construction companies. On the topic of technologies, we’re missing one more major field of work with the same potential solution.
Nightmare #13: Managing your documentation
It’s no surprise that construction generally has a lot of documentation to deal with – be it contracts, receipts, insurance certificates, material orders, etc. Dealing with all that regularly makes the entire process of document management slower and more prone to human error.
At this point, getting your entire business to work primarily paperless is something that should’ve been done for a while now. There are many different systems and solutions that can help with document management in many ways – be it categorization, due dates, project deadlines, and more.
That being said, not all of the problems and issues of the construction industry are easily fixable or technology-related.
Nightmare #14: The problem of “pointing fingers”
It is statistically impossible for construction projects to always go smoothly and with no problems whatsoever. And when a problem happens – the finger-pointing begins, more often than not. For example, the contractor points fingers at subcontractors, the client blames the contractor, and gets reprimanded by the project manager.
This kind of finger-pointing (or the “blame game,” as it’s sometimes called) is completely pointless and only prolongs the time frame between the issue and the time when it gets resolved. This is why there’s a specific policy that can help with a problem like that – a builders risk policy.
A builders risk policy is a type of property insurance that covers the majority of possible problems that may or may not happen during the construction process – from vandalism and theft to natural disasters and extreme weather conditions.
This can also be elevated to cover for some more questionable actions, such as the client claiming that they did not like the work after it was done and citing a contract breach. In these cases, a combination of a liability policy and Faulty Workmanship Coverage can protect your side of the deal from paying extra for a project with a pre-established price tag.
Unfortunately, there comes a time when there would be problems with a project on your end, and it’s quite likely that the following construction issue is to blame for that.
Nightmare #15: The lack of a skilled workforce
This might be one of the biggest problems of the construction industry to this date. And this one also gets worse with each year – with fewer and fewer young people interested in working in the construction industry and older employees being closer and closer to their retirement days.
The demand keeps growing regularly, and the problem is pretty much worldwide by its nature. While some initiatives are attempted on that level to fix this problem, it’s also possible for actual construction companies to try and mitigate the effects of this issue for themselves.
Two of the biggest potential approaches to this are mentoring and construction staffing agencies. Mentorship can work for both inexperienced students/college graduates and for existing skilled labor, allowing for more potential employees to be brought in. On the other hand, staffing agencies are tasked with covering most of the recruiting and pre-screening, offering workforce exactly when you need them.
Nightmare #16: Problem with equipment management
Equipment and tools are at the heart of most construction operations. Hence, it makes equipment management vital to business success. In most cases, construction companies typically record any equipment movement either with the use of spreadsheets and paper. But then again, manually tracking such high-ticket assets might lead to various problems for contractors and the company itself. Even logging data in spreadsheets may take a longer time and is prone to costly typing errors.
While using spreadsheets is easier for you and others, it’s a huge advantage to deploy subcontractor scheduling software to your business. You can realistically pinpoint any issues in equipment management. Thus, helping you to make decisions much better in this aspect. You can significantly accomplish this software application when tons of information and details are invariably changing during project execution. In fact, acquiring informed predictions in the future becomes easier
For now, let’s tackle some of the biggest challenges every contractor often encounters when it comes to traditional equipment management.
Inaccurate data – Oftentimes, construction companies end up with many errors in the equipment data logs. A mismatch often prevails in the system. So, who is to blame in here? Unfortunately, if you can trace all check-ins and check-outs manually, chances are you’ll never know who updated the last log.
Time-consuming manual process – Using the latest system in place, workers have to check out each tool separately and manually as needed. As a result, it can waste time that can be spent better elsewhere.
Failure to comply with the standards – The construction industry needs accurate measurements at different project phases. Any small miscalculations can lead from order to chaos. This requires you to let your construction company regularly schedule calibration services. It is vital to comply with NIST standards.
Lack of on-site assistance – Construction projects often require access to all data on-site. Doing so will help project supervisors and managers make informed decisions. However, it can be a struggle for most of them if they used spreadsheets continuously.
Nightmare #17: Unreliable subcontractors
Many contractors have issues in hiring reliable subs for the work. If you are in a pinch and have to find a subcontractor, check the material vendors and suppliers you work with regularly. You may ask other subs which you are working with for a recommendation. Ensure to check the subcontractor’s licenses. They have to carry general liability insurance. You can also list your company as additional insured on the insurance before you even hire them.
Nightmare #18: Scheduling
Scheduling can always be tricky, even with the most experienced construction professionals. If you are the contractor, you will find construction projects to be more complex compare to others. From outlining to delivering the final product, any projects include various things to keep track of, including resources, budget, and even your crew members. In some instances, it can be a potential nightmare if something goes wrong.
Scheduling and construction planning can also be a long-drawn procedure since many vendors and other third parties are involved. It is where coordination and collaboration between internal and external resources become vital. In such circumstances, an advanced crew scheduler like Pro Crew Schedule help since this construction management software is an all-time solution, helping to manage different aspects of your project.
Here are the many advantages of this software application:
- Get real-time updates and notifications
- Incorporate flexibility in the project planning
- Visibility of the tasks keeps improving
- Better construction crew management
- Accessibility of data and project details
- Easy to explore and navigate
- Time tracking and crew monitoring
Nightmare #19: Lack of skilled workers
There is a huge issue facing the construction industry over the years. There’s a lack of experienced and competent workers to fill the growing demand. Today, the younger generation is pushed toward college, not considering taking any vocational trades. Apparently, the benefits of having a construction career aren’t being sold to millennials anymore. Unfortunately, the existing workforce is now closing in on retirement.
While most industry experts try to confront these specific issues on a national level, you can still do many things as a contractor or a small construction business owner to help.
Be a mentor. Recent college grads and even high school students start to look for job opportunities during the summer months. Be eager to introduce your industry to anyone who may not consider getting a career in construction. Mentorship works for skilled labor. Hence, if one of your excellent workers shows an interest in the construction business, you can offer mentorship. Introducing them the ins and outs of construction management or construction business ownership is a good start.
Consider using a staffing agency. There are staffing agencies that can provide skilled workers ready to work for you. These agencies can take care of all pre-screening applicants, saving you time and give you qualified and excellent workers faster. Usually, a staffing agency covers the HR costs with employment, including workers’ compensation coverage.
Nightmare #20: Vandalism/theft on site
Theft and vandalism are issues that are not typically associated with the construction industry – and yet, this problem has been out there for a while now and shows no signs of stopping. It’s especially bad for the construction company in question since each missing or unusable material would decrease the overall margin of a project.
Fixing this problem requires some investments in your regular surveillance equipment, such as fences, cameras, alarms, more lighting on-site, more closed containers to store materials in, and so on.
Nightmare # 21: Irregular equipment maintenance/replacement
One thing that many companies tend to skip over is construction equipment costs – or maintenance/replacement costs, to be specific. It is also one of the biggest reasons for project overrun costs since replacing your equipment mid-construction means additional expenses on your end. Additional expenses are easily transformed into less revenue from a project – and the construction equipment tends to cost a lot of money.
Some of the means of trying to fix this problem include keeping a close eye on equipment that begins to show signs of malfunctioning all of a sudden and being quick on your feet if your equipment breaks down mid-construction (to replace it as soon as possible, be it via an equipment loan or using your funds).
That’s not to say that equipment costs are the entirety of project overrun costs – it can also happen due to a client “changing their mind” at the last minute.
Nightmare #22: “Forgetful” clients
This issue is somewhat similar to what we’ve discussed in the context of “pointing fingers” since it refers to a similar concept of clients. One of the most common cases here is for a client to request some change mid-project and then pretend to “forget” it when paying for the project completion.
The only way to avoid these situations is to get a signed change order for each change in your project if anything was requested after the initial plan was finalized.
Unfortunately, this kind of questionable behavior is not only limited to clients/owners. In fact, the number of unreliable contractors is far larger.
Nightmare # 23: The lack of reliable subcontractors
This construction issue is the one that relies the most on networking and recommendations. The number of subcontractors on the market, in general, is massive, and it might be hard to pick one for the job based on their looks. A good way to avoid picking an unreliable contractor would be to ask your vendors or material suppliers for recommendations. Asking subcontractors you’ve worked for also works wonders on finding reliable communications.
It’s also recommended to check subcontractors’ licenses, general liability insurance and list yourself as additionally insured within their insurance before finalizing the hiring process.
Nightmare #24: Poor Productivity
This occurs from a wide range of issues, including:
- Idle time due to late or insufficient supply shipments;
- Construction vehicles breaking down;
- Frequent inclement weather;
- Design complications arising midway during construction;
- Friction between the different stakeholders (e.g., owner and contractor);
- and others.
Though poor productivity cuts across many areas, the net result is invariably the same: dwindling profitability and rising costs. Thus, despite the demand potential for new construction projects worldwide, AEC businesses will face the same old problems.
The impact of these issues will affect AEC companies in various ways.
For example, established players might falter against newer competitors, especially the AEC giants of China, the top four of which earned a combined $238.5 billion in 2010.
On the other hand, smaller or newer entrants may find it more challenging to gain traction. With fewer resources on hand, these small AEC businesses will have trouble matching the pricing and pace of their larger competitors.
Nightmare #25: Rising Cost of Materials
Be it tariffs, trade conflicts, inflation, or increasing global demand, the cost of construction materials is rising. Between 2017 and 2018, material costs rose 5.3% (ABC).
According to the chart below (courtesy of Associated Builders and Contractors, Inc.), except for softwood lumber and crude petroleum, the cost of all other primary construction materials resources rose between 2017 and 2018.
Moreover, the most significant year-over-year (YoY) increases were in steel mill products (such as beams, pipes, plates, etc.) and iron and steel at 19.8% and 17.6%, respectively.
Nightmare #26: Poor Project Performance
The factors above have two significant impacts on the performance of construction projects: the risk of going over budget and the risk of failing to deliver within specified timelines.
Nightmare #27: Going Over Budget
Rising and volatile costs and productivity issues force large or capital infrastructure projects to exceed budgets.
According to a KPMG survey, 31% of contractors managed to remain within 10% of their budget. Furthermore, only 32% of project owners maintained a “high level of trust in their contractors,” while 69% of owners pinned “poor contractor performance” as the “biggest reason for project underperformance.”
Nightmare #28: Failing to Deliver on Time
The same KPMG survey found that only 25% of construction projects came within 10% of their specified deadlines.
The cause of this is manifold. It can result from specific productivity problems, such as frequent inclement weather, or systemic issues, such as trade wars.
For example, the tariffs on Chinese steel are not just driving up costs but also putting projects at risk of delays and supply shortages.
These issues slow down projects, but they also force labor and machinery to become idle, which harms productivity and results in additional costs for the contractor
Nightmare # 29: Lack of Skilled Workers
There is a big problem facing the construction industry: not enough skilled workers to fill a growing demand. The younger generation is being pushed toward college, and not vocational trades. The benefits of a career in construction are not being sold to millennials, and much of today’s existing workforce is closing in on retirement.
While industry experts try to tackle this problem on a national level, there are things you can do as a contractor and/or a small business owner to help.
- Be a Mentor: During summer months, high school students and recent college grads are looking for work. Be willing to introduce your industry to someone who may not have considered construction as a career. Mentorship also works for existing skilled labor; if one of your best workers has showed an interest in the business side of construction, you can mentor an already skilled worker on the ins and outs of construction project management or construction business ownership.
- Use a Staffing Agency: Construction staffing agencies can have skilled workers ready to work for you when you need them. The agencies take care of pre-screening applicants, which saves you time and gets you qualified workers quickly. Usually a staffing agency will also cover any HR costs with employment, including any workers compensation coverage for those employees.
Nightmare #30: Skilled Labor Shortages
The surge in new construction demand is generating demand for employment. In the US, for example, the construction industry employs 7.2 million professionals, which constitute “the highest levels since the Great Recession of 2008” (Deloitte).
However, it is unclear if there is sufficient labor to support growth. According to the Deloitte study cited above, since 2014, “the number of jobs openings have almost doubled, the number of hires over the same period has just increased by 14 percent.”
The drawback of lacking skilled labor is that it affects your output and ability to meet deadlines, which puts you at risk of falling behind your competitors.
The labor gap cuts across multiple areas, including mechanical, electrical, and plumbing engineers, civil engineers, architects, skilled trades, HVAC technicians, and plumbing. A company with a weak talent roster will struggle against more robust competitors.
Nightmare #31: Lack of Communication
When things go wrong on a project, it is almost always due to a communication breakdown along the way. Technology is the answer to your communication problems. Two-thirds of Americans own smartphones, so there is a good chance that almost everyone on your project has one. Using email, text messages, and construction technology apps on a project can get information instantaneously to all people on the project in real time and reduce the slowdowns and speed bumps of a communication breakdown.
Nightmare #32: Unreliable Subcontractors
Many contractors have problems finding reliable subs for their jobs. If you are in a pinch and need to find a sub, check with the materials suppliers and vendors that you work with regularly. They will have the inside scoop, and may have a great recommendation for a sub. You can also ask other subcontractors that you have worked with for a recommendation, too. Always check a sub’s licenses, make sure they carry general liability insurance, and list your company as additional insured on their insurance before you hire them.
Nightmare #33: Scheduling
Scheduling can be tricky for even the most seasoned construction professional. Once again, construction technology is providing a solution for this common problem. Project management apps that you can access from a desktop or your smartphone or tablet allow you to visually map out a project timeline. Many apps allow for a “sticky-note” style virtual board that allows you to easily see what needs to be completed, and gives real-time project status updates.
Nightmare #34: High Insurance Costs
Contractor insurance is part of the cost of doing business, but that doesn’t mean you have to overpay for it. You can get lower rates on your contractor insurance by combining coverage, not letting your coverage lapse, and reviewing your policies each year for changes that may save you money.
Nightmare #35: Changing Minds of Project Owners or Homeowners
Homeowners who want changes in the middle of a project may “forget” about the requests they’ve made when it comes time to pay the bill. In order to protect yourself, your reputation, and your bottom line; be sure that you get a signed change order every single time.
Nightmare #36: Available Cash
You have payments due to subs, employees, vendors, materials suppliers, and equipment renters… but you don’t get paid until the project is complete. And unless you have enough available cash flow, this can be a major problem. Have an open business line of credit to see you through the tough spots between bills due and project’s end, and you won’t have to see your credit (or reputation) suffer.
Nightmare #37: Document Management
Contracts, change orders, materials orders, receipts, invoices, employment applications, certificates of insurance… you probably have enough paper to fill an entire trailer of filing cabinets. It’s time to go paperless. A digital solution can help you stay on track of documents, organized on your projects, and on-time with your payments. At the very least, scan all documents into your computer and digitally file/ organize them. Be sure to backup your computer to a cloud service or hard drive regularly in case you have a hardware issue.
Nightmare #38: The Blame Game
Nothing ever goes smoothly in construction 100% of the time. When there is a bump in the road, fingers start pointing. The general contractor blames the sub, the homeowner blames the general contractor, the project manager blames the owner. When a worst-case scenario actually occurs, skip the blame game and finger pointing and get back on track with a builders risk policy. This type of specialized property insurance covers the project, and all of the principles working on it. Extreme weather, natural disasters, even theft and vandalism can all be situations where a course of construction policy can get you back to work without finger pointing and burnt bridges.
Did the owner change their mind on materials after they were installed? Or decided they didn’t like the work after it was done and are claiming you didn’t fulfill your contract? Carrying a liability policy with Faulty Workmanship Coverage can protect you from coming out of pocket for those new materials. The right coverage eliminates the Blame Game, keeping your clients happy and your bottom-line covered.
Nightmare #39: Ever-changing Regulations
Federal, state, county, and even city regulations are constantly being changed and updated. How are you supposed to stay on top of everything? Follow blogs and industry publications to get the latest updates on changing regulations that affect your business. Sign up for newsletters, and have new blog posts automatically emailed to you. Prevent inbox clutter by having these industry-specific emails sent to a specific folder in your inbox. Then, set aside 10-15 minutes each day when you can catch-up on everything you need to know to stay compliant.
We’ll Help You Eliminate These Nightmares
We provide a wide range of consulting or coaching solutions and services to the Construction industry to help reduce re-work, reduce risk, increase efficiencies and ultimately improve quality and control.
Harvard Business Review: https://hbr.org/2009/01/what-can-coaches-do-for-you
If you would like to know more about how we can help your business please get in touch with us now.
More Nightmares Owners Suffer!
While construction management is a fairly complicated topic on its own, the construction industry as a whole has its own list of problems for smaller construction companies.
Even though the industry itself is growing, it’s important to know about some of the major problems that most smaller construction companies encounter one way or another.
Construction Industry Entrepreneurship is fraught with a lot of challenges. Though both novice and experienced contractors have to face challenges, the nature of such challenges is significantly different.
Let’s take a look at the most common small construction business nightmares that new construction entrepreneurs often have to deal with, in addition to finding solutions for each of them. If you’re an aspiring entrepreneur, the following advice will help to make your journey a little easier.
Nightmare #40: Capital
The challenge: You want to grow or start your new business endeavor, but you’re facing difficulties for financing for new business owners.
The solution: Though various ways are there for arranging small business funding, starting from friends and family to conventional bank loans, many experienced entrepreneurs believe that self-fueled growth model is the best and less-risky one.
Instead of trying to establish a big business house overnight, aim at your primary customers. If you can provide value added services to them, by the virtue of word-of-mouth publicity, your business will develop automatically. However, if you need to take outside funding anyway, don’t forget to consult an attorney to avoid future complications.
Nightmare #41: Right Business
The challenge: Two of the most crucial reasons behind failing of new construction entrepreneurs are the inability of selecting the right trade or business and doing it in the proper manner e.g. ethically.
The solution: Firstly, to attain success in your new business endeavor, you’ve to have an outstanding construction service or product that adds value to your customer’s life.
Secondly, you’ve to maintain your ethics. Having said that, you’ve to deliver exactly what you’ve committed to. Because if you fail to do so, again by virtue of word-of-mouth publicity, you’ll hardly have your business expanded as you’ll fail to attract new customers or retain your existing clientele. Remember – it’s easier to attract first time customers, but it’s much more difficult to retain them.
Nightmare #42: Cash Flow
The challenge: Small construction businesses can’t survive if they don’t follow cash flow guidelines and this is probably one of the biggest problems that new entrepreneurs face.
For example, you perform a job timely, raise the invoice and get paid after a month. In the meantime, you’ve to bear all your business related expenses like your infrastructural cost, your employee’s salary and additionally, your personal expenses. And in case you don’t get paid at all, only some miracle can help you out.
The solution: Proper planning and budgeting are crucial for maintaining cash flow. One way to increase cash flow is asking for a down payment whenever you receive an order. That way, you’ll be able to pay your expenses and that too while keeping some profit aside.
Another way of increasing cash flow is asking your clients for faster invoice payments. Say, instead of 30 days you can ask your clients to clear your invoice after 15 days. That way, if the client is late on payment, you’ll still have some time.
The third way is a little uncommon and it entirely depends on your rapport with your own vendors. If you can manage to make your vendors agree to invoice you after 45, 60 or 90 days, you’ll have sufficient time to receive your payments and then clear their invoices.
Nightmare #43: Quitting Another Career
The challenge: Most of the new construction entrepreneurs leave their regular construction jobs in the overwhelming joy of becoming self-independent. And that too with less than the amount in bank required for living at least a month or two even without any payment whatsoever.
The solution: Money is something inevitable for living. So, quit your present job when you’ve at least the required amount for living a standard life as a financial cushion and have a robust business plan, or when you’re earning a standard amount from your new business endeavor.
Nightmare #44: Too Many Competitors
The challenge: Dealing with too many competitors in the same field.
The solution: Bring in something trendy and new in the market. Customers flock to a business that offers extensive service or product knowledge and a wide collection of services or the products they’re looking for.
Nightmare #45: Hiring Employees
The challenge: The hiring process can become a nightmare for most of the new construction entrepreneurs. After completing all the steps of recruitment like reviewing resumes, taking interviews etc, at times, they end up hiring an incompetent trades person.
The solution: Consider being a Union contractor. and use the Hiring Hall of the certain trade.
The second solution: Go through the ‘wanted’ part of the job sections of newspapers. You’ll be able to shortlist some candidates according to your requirements.
Next, you can organize a ‘walk-in interview’ and offer them a tour of their future working environments. Next, sit with them across the table and finalize things. Remember to make everything clear for both sides because that’ll be extremely helpful to create a healthy work relationship and hire the ones that fit the vacancies, with respect to both their skills and attitude.
Nightmare #46: Finding Customers
The challenge: Finding prospective customers.
The solution: If your product/service adds value to people’s life or construction project, you don’t need to spend a huge amount of money on advertising in the initial stages. If you’ve a great product/service, people will automatically come to you. Just remember to keep your patience and approach only those people who show interest in your business.
Nightmare #47: Time Management
The challenge: Time management is probably the biggest problem, especially for the new construction entrepreneurs. In your own business, you’ve to take care of everything unlike a regular job where you only have to take care of certain tasks.
The solution: You’ve to enhance your time management skills. Following are some useful tips:
- Create goal lists: Make a lifetime goals list and break it down to annual, monthly, weekly and daily goals. That way, your daily goal will be in front you and you just have to be on track.
- Delegate the jobs that don’t require your personal involvement.
- Simply eliminate the unnecessary tasks.
- Assess yourself on a regular basis.
- Strictly follow project schedules.
Nightmare #48: Delegating Tasks
The challenge: Probably due to their inexperience, new construction entrepreneurs often get things messed up when it comes to delegating tasks and they’ve to redo it all over again.
The solution: If you’ve a team of good employees, this job becomes much easier. Taking the help of good outsourced Union or agencies is another way of performing this task easily. The latter might be a little costly but it’ll help to get the tasks performed efficiently and in a time saving manner.
More importantly, remember to be absolutely specific about your requirement so that tasks are delegated with clear guidelines, which in turn would help to get them completed on time, in an efficient manner.
Nightmare #49: Finding Business Partners
The challenge: Finding reliable business partners is one of the most critical jobs that a new construction entrepreneur has to perform. A wrong business partner will provide you with a negative reputation and as your reputation will be connected to your partner, you’ll be risking the success of your endeavor somehow.
The solution: It’s difficult to judge your partner at the first sight, but if he/she has the wrong intentions, it’s bound to be revealed gradually. The only way out is to immediately dissolve the relationship with your partner.
Nightmare #50: Choosing What to Trade or Niche to Sell
The challenge: One of the biggest reasons for the failure of new entrepreneurs is selection of the wrong niche.
The solution: It’s very common that being a newcomer in the entrepreneurial world, you may not have the adequate expertise to select a profitable niche. In that case, hire a freelance market researcher who will survey the related market e.g. the field you want to do business in, and prepare a report of profitable niches. You can then analyze the report and decide on your preferred niches.
Nightmare #51: Strategies for Market
The challenge: You’re unaware about the best possible way to market your products/services. Your aim is to maximize your ROI with effective and targeted marketing.
The solution: Again, it’s a useful idea to outsource the marketing part to another third party who has adequate expertise. Prepare a marketing budget and hand it over to them and they’ll chalk out an efficient marketing plan. Remember not to take the chance of experimentation at this stage. You can perform that later when you’ve a productive baseline.
Nightmare #52: Strapped Budget
The challenge: Even when you’ve adequate cash flow, it looks like you’ve a strapped budget to exhibit your products/services to their full potential.
The solution: Admit that every entrepreneur faces the phases of having a strapped budget. You can lower the number of the situations by effective marketing efforts. Spend the money where it maximizes your ROI and stock the rest for other infrastructural and experimental expenses.
Nightmare #53: Self-Doubt
The challenge: Every new construction entrepreneur goes through a phase where he/she starts lacking self-confidence and feels like quitting. It mainly happens due to initial failures and watching the growths that are lower than expected.
The solution: You’ve to overcome self-doubt to become a successful construction entrepreneur. Discuss the matters within your close circle who are aware of your goals. You may even seek the help of fellow construction entrepreneurs, some of whom will be ready to offer advice and show you ways to overcome the hurdles during this phase.
Whether you’re thinking of becoming an construction entrepreneur or have just entered the domain, be prepared for these challenges. To achieve success, plan strategically, explore the possible ways, bring in a great product or service to the market and finally, do good business.
Nightmare #54: Safety
Worker safety continues to be an issue plaguing the construction industry. For years, construction has led all industries in the total number of worker deaths. The number of workplace injuries and illnesses has remained constant for years. Keeping workers safe and protecting them against accidents and injuries should be the top priority for all business owners.
The median time away from work after suffering an injury or illness on the job in construction is 10 days. Of the 82,760 accident injuries involving days of work missed in 2016, 26,010 of them involved 31 days or more away from work, which works out to nearly a third of all accident injuries requiring days away from work. That’s a massive amount of lost productivity due to injuries and illnesses.
Training is the number one way to keep workers safe on the jobsite. Safety training shouldn’t be a one-time event. Ongoing training is needed throughout a worker’s career to emphasize the importance of safe working practices and to reinforce the lessons they’ve been taught. There’s no such thing as too much safety training.
Accidents are easily preventable when hazards have been mitigated and safe work practices are strictly and vigilantly enforced. Safety starts at the top and companies that have strong safety programs have been shown to be more productive. A commitment to safety can improve a construction company’s reputation and attract top talent by showing an interest in the well-being of its employees.
Nightmare #55: Technology Adoption
The construction industry, as a whole, is notoriously slow at adopting new technologies. Countless studies and surveys over the years have shown that business owners continue to underinvest in technology, despite their acknowledgment of the many benefits that technology can provide to running their business and managing construction projects.
BIM, telematics, mobile devices and software applications have all been in use in the construction industry for a number of years. Emerging technologies like VR and AR, robots, drones, 3D printing, the Internet of things (IoT), wearables and autonomous vehicles are all being adapted for use in the construction industry.
Ironically, many of these technologies can be used to help address these other challenges the construction industry is facing. BIM, VR, project management software and mobile devices can help with scheduling and planning as well as communication and collaboration which can lead to better productivity.
Drones and wearable are being used to monitor workers and keep them safe. VR is being used to train workers in safe environments and robots and autonomous equipment are allowing workers by alleviating some of the more strenuous tasks they are required to perform while also removing them from some of the more hazardous areas on construction sites. Companies that are adopting new tech also have a leg up on attracting more millennials to come and work for them.
We are quickly reaching the point where technology is going to be a critical component of all construction projects. The companies that are early adopters and are implementing new tech into their workflows and jobsites are going to have a noticeable advantage over those who don’t.
Companies that fail to see the advantages of technology or continue to underinvest in these tools won’t have the competitive edge to survive in this rapidly changing environment.
Nightmare #56: Poorly defined goals
This is probably one of the biggest construction management issues to date – no defined goals for a project. The cause of this might be different – with stakeholders either not being able to agree on something or not knowing what they want out of a project themselves.
The problem is that the existence of an unclear goal of a project makes it exponentially harder to manage. Luckily enough, this issue can be avoided, at least to some degree.
For example, construction project managers can ask direct questions to stakeholders from the beginning of a project and continue reiterating them for the entire length of a project’s realization to keep everything consistent
Nightmare #57: Problems with risk management
Risk management is another important topic for construction as a whole, and in some cases one of the biggest construction management issues. Risks in the construction industry are far bigger and more costly than in most industries.
Construction managers always have to try and identify potential issues before they become the cause of a project delay or a budget increase. Most of the time it’s important for construction management to gather input and generate mitigation plans beforehand.
Nightmare #58: Unclear scope of a project
This construction issue is so big it’s even got its own name – “scope creep”. It’s a direct result of poorly defined goals, and a lot of such cases end up either over budget or over schedule.
It’s up to construction management to communicate with stakeholders on the topic of scope importance, and the potential delays and/or budget increases that might arise if the issue is not taken care of in time.
Nightmare #59: Issues with stakeholders’ expectations
Another issue for construction that is related to stakeholders is the appearance of expectations that are straight-out unrealistic or unachievable. It’s not uncommon for productivity, in general, to drop in the face of an unrealistic deadline or the lack of resources on site. In this case, it’s up to the construction management to be on the side of regular workers and to advocate for more realistic expectations that can actually be achieved in the specific timespan.
Nightmare #60: Lack of technological progress adoption
The incredibly slow process of adopting new technologies is basically a norm for the entire construction industry at this point. Despite the fact that many business owners understand and acknowledge a myriad of benefits that new technologies can bring, it’s still a rare occurrence to see a construction business owner investing in adopting a new technology for their business.
The ironic part of this is that a lot of the new technologies can be used to at least partially solve other construction-related problems, like BIM for planning and scheduling, drones for monitoring, VR for training, and so on. Additionally, companies that don’t shy away from newer technologies tend to attract younger specialists – solving one of the bigger hurdles of the construction industry as a whole.
The point of time, where the introduction of some technologies would be inevitable for the company to stay on the market, is getting closer and closer, and early adopters would have a great advantage over more conservative companies in that regard.
Nightmare #61: Productivity problems
Another interesting topic in this context is how the construction industry has a lot of productivity problems, especially when compared with similar industries, like agriculture or manufacturing. This is even more problematic right now since the complexity of construction projects grows on a regular basis.
Some of the reasons regarding these problems are directly tied with age-old industry issues, such as technology adoption resulting in inadequate planning and scheduling, labor shortage problems resulting in workers not having enough skills for the job, and so on.
As with the previous example, the possible solution for this problem lies in newer technologies and methods, such as design-build method, or lean construction practices – the problem is that both of those require a level of communication that is unachievable without the modern technologies such as BIM, project management software, etc.
Nightmare #62: Safety concerns
As a highly dangerous industry in general, work safety has been a major concern for construction companies for a while now, with the construction industry dominating the ratings of a total number of worker deaths for decades. Additionally, even injuries that are not fatal result in a relatively long recovery period, often resulting in a worker being out of commission for at least a month or more.
Obviously enough, worker safety should be the number one priority for construction companies, since each missing worker is a huge productivity loss, at the very least. Events like safety training and briefings should not be a one-time thing, but a reoccurring event, to reinforce all of the previously acquired knowledge.
It’s not just about worker level either. A good safety program designed on the highest level of a company and vigilant enforcement of this program often leads to a lot fewer accidents on the site in general, and might even bring some reputational advantages in some cases.
Nightmare #63: Labor problems
The demand for skilled workers is always growing, and not enough people are interested in working for the industry to meet that demand. This also adds up to a different problem – experienced workers retiring faster than their replacements are getting hired.
There is hope here, luckily enough. Companies seem to understand the severity of this problem, and there’s been an increase in various training and apprenticeship programs, as well as government collaborations to attract more talent in the industry in general. While this is a positive note, the problem of labor shortages has been active for some time now and shows no signs of stopping any time soon.
Part 4: The $100,000 Challenge
Which Company Nightmares Would You Want Eliminated?
Review each question, answer the question and contact us so we can do a FREE Discovery Session with you to help eliminate your nightmares. Also consider the cost of these nightmares to your business and what your goals for resolution should be for your company.
I want the following nightmares eliminated
Eliminate Nightmare #1: The workload is too big? Yes: __ No: __
Eliminate Nightmare #2: Not enough money to last through payment delays? Yes: __ No: __
Eliminate Nightmare #3: Lack of knowledge (business, legal, etc.)? Yes: __ No: __
Eliminate Nightmare #4: Other Contractors? Yes: __ No: __
Eliminate Nightmare #5: Operating Capital and Cash Flow? Yes: __ No: __
Eliminate Nightmare #6: Issues with cash flow? Yes: __ No: __
Nightmare # 7: Planning and Growth? Yes: __ No: __
Eliminate Nightmare #8: Project Complexity? Yes: __ No: __
Eliminate Nightmare #9: Keeping up with compliance regulations? Yes: __ No: __
Eliminate Nightmare #10: Working on a schedule? Yes: __ No: __
Eliminate Nightmare #11: Slow technology adoption speed? Yes: __ No: __
Eliminate Nightmare #12: Communication problems? Yes: __ No: __
Eliminate Nightmare #13: Managing your documentation? Yes: __ No: __
Eliminate Nightmare #14: The problem of “pointing fingers”? Yes: __ No: __
Eliminate Nightmare #15: The lack of a skilled workforce? Yes: __ No: __
Eliminate Nightmare #16: Problem with equipment management? Yes: __ No: __
Eliminate Nightmare #17: Unreliable subcontractors? Yes: __ No: __
Eliminate Nightmare #18: Scheduling? Yes: __ No: __
Eliminate Nightmare #19: Lack of skilled workers? Yes: __ No: __
Eliminate Nightmare #20: Vandalism/theft on site? Yes: __ No: __
Eliminate Nightmare #21: Irregular equipment maintenance/replacement? Yes: __ No: __
Eliminate Nightmare #22: “Forgetful” clients? Yes: __ No: __
Eliminate Nightmare #23: The lack of reliable subcontractors? Yes: __ No: __
Eliminate Nightmare #24: Poor Productivity? Yes: __ No: __
Eliminate Nightmare #25: Rising Cost of Materials? Yes: __ No: __
Eliminate Nightmare #26: Poor Project Performance? Yes: __ No: __
Eliminate Nightmare #27: Going Over Budget? Yes: __ No: __
Eliminate Nightmare #28: Failing to Deliver on Time? Yes: __ No: __
Eliminate Nightmare #29: Lack of Skilled Workers? Yes: __ No: __
Eliminate Nightmare #30: Skilled Labor Shortages? Yes: __ No: __
Eliminate Nightmare #31: Lack of Communication: Yes: __ No: __
Eliminate Nightmare #32: Unreliable Subcontractors? Yes: __ No: __
Eliminate Nightmare #33: Scheduling? Yes: __ No: __
Eliminate Nightmare #34: High Insurance Costs: Yes: __ No: __
Eliminate Nightmare #35: Changing Minds of Project Owners or Homeowners? Yes: __ No: __
Eliminate Nightmare #36: Available Cash? Yes: __ No: __
Eliminate Nightmare #37: Document Management? Yes: __ No: __
Eliminate Nightmare #38: The Blame Game? Yes: __ No: __
Eliminate Nightmare #39: Ever-changing Regulations? Yes: __ No: __
Eliminate Nightmare #40: Capital? Yes: __ No: __
Eliminate Nightmare #41: Right Business? Yes: __ No: __
Eliminate Nightmare 42: Cash Flow? Yes: __ No: __
Eliminate Nightmare #43: Quitting Another Career? Yes: __ No: __
Eliminate Nightmare #44: Too Many Competitors? Yes: __ No: __
Eliminate Nightmare #45 Hiring Employees? Yes: __ No: __
Eliminate Nightmare #46: Finding Customers? Yes: __ No: __
Eliminate Nightmare #47: Time Management? Yes: __ No: __
Eliminate Nightmare #48: Delegating Tasks? Yes: __ No: __
Eliminate Nightmare #49: Finding Business Partners? Yes: __ No: __
Eliminate Nightmare #50: Choosing What to Trade or Niche to Sell? Yes: __ No: __
Eliminate Nightmare #51: Strategies for Market? Yes: __ No: __
Eliminate Nightmare #52: Strapped Budget? Yes: __ No: __
Eliminate Nightmare #53: Self-Doubt? Yes: __ No: __
Eliminate Nightmare #54: Safety? Yes: __ No: __
Eliminate Nightmare #55: Technology Adoption? Yes: __ No: __
Eliminate Nightmare #56: Poorly defined goals? Yes: __ No: __
Eliminate Nightmare #57: Problems with risk management? Yes: __ No: __
Eliminate Nightmare #58: Unclear scope of a project? Yes: __ No: __
Eliminate Nightmare #59: Issues with stakeholders’ expectations? Yes: __ No: __
Eliminate Nightmare #60: Lack of technological progress adoption? Yes: __ No: __
Eliminate Nightmare #61: Productivity problems? Yes: __ No: __
Eliminate Nightmare #62: Safety concerns? Yes: __ No: __
Eliminate Nightmare #63: Labor problems? Yes: __ No: __
Eliminate Nightmare #64: ___________________Yes: ___ No: ___
How many nightmares do you want eliminated? _________________________
Part 5: The $100,000 Challenge
What Our $100,000 Construction Coaching Challenge Can Do for You to Eliminate Your Nightmares!
Whether you’ve had a family construction business that has been going for years or you’re just starting in construction, business consulting may not be the first thing you think of when looking at how to build a successful construction business.
The main responsibility of a construction business coach is to motivate an individual or an entire team. Coaches are focused on improving your business performance or skills of you or your team by conducting training sessions, coordinating practice drills, and providing guidance.
Our work is conducted both in and out of your office. Coaches are sometimes tasked with a variety of activities to meet profit, cost reduction or management goals.
Selecting a construction coach may be the smartest business decision you ever make. The right construction business consultant or coach can bring construction business tips and ideas for growing your construction business that you may have never thought of.
Part 6: The $100,000 Challenge
THE 21ST CENTURY BUSINESS SUCCESS FORMULA ASSESSMENT
Complete Your FREE Discovery Assessment. Do the 8 Steps to Solve Your Company’s Nightmares
- Get clear on the issues that created the problem. What really needs correcting here?
- Get clear on everyone’s interests. This will help prioritize the resolution.
- List all possible solutions. Get creative and brainstorm every conceivable outcome.
- Evaluate the possible solutions. Sometimes a simple mark out of ten helps.
- Select the best option.
- Write down the best solution with all the details and implications.
- Make contingency plans. Any change will probably produce a knock-on effect elsewhere. Be sure to have it considered, if not covered!
- Contact us if you need any help in solving your construction business problems.
THE 21ST CENTURY BUSINESS SUCCESS FORMULA
- First. Fix in your mind the exact problem you want eliminated. It is not sufficient merely to say “I want plenty of….. “Be definite as to what you want. (There is a psychological reason for definiteness which will be described in a subsequent chapter).
- Second. Determine exactly what you intend to give in return for what you want and what you desire. (There is no such reality as “something for nothing.)
- Third. Establish a definite date when you intend to possess what you want and what you desire.
- Fourth. Create a definite plan for carrying out your desire, and begin at once, whether you are ready or not, to put this plan into action.
- Fifth. Write out a clear, concise statement of what you want or the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it.
- Sixth. Read your written statement aloud, twice daily, once just before retiring at night, and once after arising in the morning.
Problem solving doesn’t always follow a step by step process so be prepared to jump around the points. This process can be very helpful during a company meeting or a site meeting. Take these steps and formula with you and get other’s input.
In a Nutshell: You CAN solve or eliminate the problem. Go through the formula and steps, with others if possible, and make a note of your solutions.
Additional Take-Away: There’s an important trend developing in some construction companies, they are recording problems and how they get solved so there’s a searchable system in place for the next time that problem arises. There’s no reason to reinvent the wheel each time there’s a problem, so why not start your own in-house system?
Most of our clients double their business revenue within 12-18 months, using the $100,000 Nightmare Challenge Assessment and Coaching Programs!
Most of our clients double their business revenue within 12-18 months, while working less hours. We train you, the owner, with our proven programs, how to run a successful and profitable business, while still having time to enjoy your life.
The construction industry is quite old and has been through a lot. Some of the problems are extremely old; others have become more prominent in recent years and were not a problem before.
With so many challenges and conflicts facing the construction industry, it is nearly impossible to overcome most of them on your own. Investing in business coaching you will undoubtedly find your efficiency going up. For Example:
Eliminate New Construction Business Struggles
If you’re starting a new construction business, there may be challenges you have to face that you may not have anticipated, everything from finding the right vendors for your materials, to acquiring funding, to putting together the right construction team and finding the right ways to manage them. We has the experience to help you with all of these issues.
Eliminate Team Management Struggles
A construction team is only as strong as its weakest link, and how you deploy your people is an important factor in how successful your construction efforts can be. We can assess the strengths and weaknesses of all the members of your team and help you make sure you have everyone in the right place working the right job so that you can optimize your efforts.
Eliminate Marketing Struggles
There was a time when great construction work would speak for itself, but in the digital age and with rising competition, you need to be able to do more. Knowing how to advertise a construction business is critical. If your website isn’t performing or if you can do more with your social media pages, our experts can let you know and help you get the most out of your marketing efforts.
How the $100,000 Challenge Works to Eliminate Nightmares!
30+ Years of “Hands-On” Experience Eliminating Nightmares in All Aspects of Construction Owner’s Businesses
Step 1: 30 Min Call (FREE)
- Call us for a free 30-min consultation.
- Discuss your business issues and get expert feedback to address your problems.
- If your business is a good fit we will invite you to proceed to step 2.
Step 2: Strategy Session Call (FREE)
- We will develop a specific action plan for your business or nightmare.
- We will create business strategies to address your problems.
- We will develop a financial model of what your business will look like if you apply these strategies.
Step 3: Coaching Program (PAID)
- You will meet with your coach one-on-one, in person or by video conference.
- Sessions are 1 hr. every week during the planning phase.
- Sessions are 1 hr. every other week during the execution phase.
CONTACT MICHAEL KISSINGER TO HELP YOU
About the author Michael Kissinger has over 30+ years in the construction industry. He obtained his CLSB license: 439928 many years ago.
He worked for many major San Francisco Bay Area contractors on residential and commercial projects.
He started as a laborer, joined Carpenters Local #22 in San Francisco.
He has over 10 years “hands-on the job” experience. He worked his way to superintendent.
He completed the Carpenter’s Union apprentice program, became a journeyman carpenter. He, worked as journeyman carpenter, foreman, assistant superintendent for such companies as Plant Brothers, Swinerton construction company, Page Construction Company, Rothschild and Raffin Inc., Riser construction company, Sunset Streams Homes, Doelger Homes of Daly City, Page Construction in Novato, and many others through Local #22 in San Francisco.
He graduated from the University of San Francisco in business management, obtained a construction management degree from San Francisco State University.
He successfully taught in the Construction Certificate Program at San Francisco State University for over 16 years. Over 500+ contractors or subcontractors attended these classes.
He also successfully taught the information in the “California Construction Law Manual. It provides extensive coverage of California Construction Law along with expert commentary.
This course Contract Documents and Construction Law focused on understanding the relationship between contract documents and the construction process. It explored contractual relationships, legal roles and responsibilities, and contract types. It included regulatory issues, liens, bonds, insurance, and how standardized forms are used. General conditions clauses that affect levels of decision-making authority, project close-out and the superintendent’s role as agent of the contractor will be studied.
He focused on legal issues that often result in construction disputes including differing site conditions, time, and schedule impacts, change orders and changed conditions.
He also focused on contract dispute resolution including negotiations, alternative dispute resolutions, and litigation of disputes.
He taught the important information on: Arbitration, Claims of subcontractors and suppliers on public jobs, Contractors’ license law, Contracts – what to include and what to keep out, Mechanics’ liens, stop notices, and payment bonds, Miscellaneous rules, Public contracts Tort law in the construction context, Construction defects, Public contracts, etc.
He also successfully taught Architects and Engineers at Golden Gate University in the Masters and Ph.D Construction Management Program for 16 years. He successfully taught over 500+ architects and engineers. He was promoted to the status of adjunct professor.
He taught information in the “California Construction Law Manual. It provides extensive coverage of California construction law along with expert commentary.
He taught the important information on: Arbitration, Claims of subcontractors and suppliers on public jobs, Contractors’ license law, Contracts – what to include and what to keep out, Mechanics’ liens, stop notices, and payment bonds, Miscellaneous rules, Public contracts Tort law in the construction context, Construction defects, Public contracts and More.
He also taught Architects and Engineers. Their professional responsibilities, Attorneys Guide to California Construction Contracts and Disputes. Construction Arbitration, A Simplified Guide to Construction Law, and California Public Construction Contracts.
He wrote numerous articles for the Daily Pacific Builder on Business Management and Construction Contacts i.e. Arbitration, Claims of subcontractors and suppliers on public jobs, Contractors’ license law, Contracts – what to include and what to keep out, Mechanics’ liens, stop notices, and payment bonds, Miscellaneous rules, Public contracts Tort law in the construction context, Construction defects, Public contracts and More.
Generally contractors, managers and staff who completed his Construction Management an Law Coaching
- Understood the importance of contract documents and construction law as they pertain to on site construction supervisors.
- Were able to understand and use common legal terms.
- Understood the different forms of formal dispute resolution including litigation, arbitration and mediation.
- Understood the roles of partnering in avoiding construction conflicts by communicating and building trust between contractual parties.
- Were able to differentiate between various contractual relationships by understanding the roles and responsibilities of contractual parties.
- Understood the different types of construction contracts and how the construction supervisors role may be affected by them.
- Were able to determine the levels of decision making authority and relationships as defined by the general conditions.
- Were able to recognize, develop and manage a documentation system
- Understood the effects of changes as they are encountered and develop methods to react to potential conflicts resulting from changes.
- Know how to recognize differing business and project conditions and understand the importance of knowing the legal solutions available in their business and on their projects for greater profitability
Obtained his own general contractors license from the California State Contractors License Board-License #439928.
He worked and served as a construction business coach and consultant for 30+ years. Focusing on such areas as Business Development, Marketing and Sales, Business Performance, Team Building, Arbitration, Claims of subcontractors and suppliers on public jobs, Contractors’ license law, Contracts – what to include and what to keep out, Mechanics’ liens, stop notices, and payment bonds, Miscellaneous rules, Public contracts Tort law in the construction context, Construction defects, Public contracts and More.
He was a senior area manager, a construction business analyst, coach and consultant with International Profit Associates.
International Profit Associates, Inc. (IPA), was a controversial small business management consulting firm based in Buffalo Grove, Illinois. The company helped more than 175,000 small and medium-size businesses by offering corporate strategy, tax advice, mergers and acquisitions help, and executive coaching services. Michael helped this company do $188 million annually.
IPA associated itself with prominent politicians, including former Presidents Gerald Ford, George H. W. Bush, and Bill Clinton, all of whom have spoken at the company’s annual Christmas “Celebration of Success” dinner.
The company’s main selling point was to promise that the client would see a three dollar return on every dollar spent on consulting fees.
Process: The survey analyst spends two or three days studying the business, then provide an oral analysis, the purpose of which is to have the client agree to coaching.
The client would then agree to bring in a team of IPA consultants to address the problems the analyst has uncovered.
REVENUES REACH $250 MILLION 2006. Michael left the firm in late 2005.
He was also a keynote speaker before various California Builders Associations where he focused on the above referenced areas.
He was also trained by over 300 New York Best Selling Authors from the Nightingale Conant Corporation in the areas of Personal Development, Business Development, Marketing and Sales and Financial Development. Nightingale-Conant is the World Leader in Business Success, Personal Development and Motivation since 1960, with over 2 million loyal customers.
Long before Deepak Chopra and Tony Robbins showed us how to improve our lives, Nightingale-Conant pioneered the publishing of self-development audiotapes. Its Psychology of Winning, produced in 1978, is one of the best selling audio self-improvement programs in history. Its recordings offer advice from business authors, inspirational authors, etc.
He is also a 4th Degree Kukkiwon Certified Taekwondo Blackbelt. He was trained by Grand Master Jerry Reitenbach and Grand Master Sydney Reitenbach at the Institute of Taekwondo in Daly City California. He eventually became an instructor.
He is an Honorably Discharged Vietnam Veteran from the US Army Special Forces.
He also served as the Business Development Director for Swords to Plowshares and Vietnam Veterans of California for several years.
He was a minister at Unity Church in San Francisco and served on the Board of Directors. He is now a minister at St Stevens Church in San Francisco, California.
Our Owner’s Coaching Can Help You Eliminate Nightmares
Each step you work through will have exponential growth, followed by a flattening off and slight decline before the next stage kicks in and propels you to the next level of profitability.
But when you have construction business coaching, you’ll get the roadmap to make sure each change of gear is as painless and seamless as possible.
Construction business coaching gives you the tools you need in order to increase your margins, lead your team, establish a strategic direction and systemize your building company. CONFIDENTIAL TESTIMONIALS – mksmasterkeycoaching.com
WE HELP YOU IN THE OFFICE, ON THE JOB and ONLINE
- Construction Business and Management Coaching
- Financial Coaching
- Operational Coaching
- Performance and Productivity Coaching
- Legal Strategy Coaching
- Construction Business Marketing Coaching
- Construction Sales Coaching
- Construction Human Resources Coaching
- Construction Owner and Employee Self-Improvement Coaching
OUR OBJECTIVE TO BE YOUR “GO TO” BUSINESS COACH
Our objective is to work with your company offering coaching or consulting services of the highest value based on a proven track record of “Hands-On-Performance”.
The key to a successful building company is a business owner that spends more time and energy working ON the business, rather than IN it…
In order to grow your building company, you need to spend more time on profit-generating activities, rather than meaningless tasks that just leave the wheels spinning in your business.
All professional builders know this to be true, but the problem is they don’t know where to start.
There’s no doubt that you’ve heard of business coaching before – maybe you’ve even been coached yourself at some point in the past.
But our construction business coaching is different…
We don’t provide generic advice or solutions…
It’s business coaching FOR BUILDERS.
We tailor our coaching to you building nightmares.
Meaning you don’t have to decipher through generic BS that doesn’t actually apply to your nightmare. Our proven coaching for your construction business is ready to deploy into your building company immediately!
We’ve worked with hundreds of builders across the United States. So you can rest assured that everything we offer has been tested by other builders just like you and has been proven to work.
If you’re thinking that you’re already flat out with work and you just don’t have the time, you need this more than anyone.
It’s not about working longer hours.
Construction business coaching allows you to systemize your building company so you can spend more of your time on profit-generating activities!
Now, we know what you’re thinking…
If you don’t increase your profits, you’ll be losing money with all those extra expenses…
But, here’s the thing.
Growth, unfortunately, is not linear.
In construction, net profit follows what we call the S curve. Which means, in order to move forward, you’ll need to move slightly backward.
Think of it like changing gears in a race car – as you change gears, you lose a small piece of momentum, but you have to go through that to be able to take your speed to the next level.
It’s exactly the same in business!
Your Guaranteed Coaching Results
: We Guarantee to get results, and that you’ll be able to “Find our Fee” in your business within 17-weeks of our coaching your company, or your coaching is FREE.
Our coaching programs have been tested and proven across America, so when you hire us, you WILL get results. Even if you have done your part in good faith, have done all assignments, and have attended all coaching sessions, events, and workshops–but you’re still not satisfied or not seeing the results you want by the seventeenth week, we will coach you FREE until you get the results, no questions asked!
: We Guarantee to tell the truth about you and your business no matter how uncomfortable it may be, or how hard it is to share with you the realities of your business and the changes you need to make. When you hire us, you will have the “unreasonable friend” and the personal business mentor you and your business need to succeed. You will be accountable for everything you say you will do, and your business will get the push it needs so you can get the results you want.
: We Guarantee you a “business re-education” about how your business really works and how to successfully grow your company, as well as how to apply your new education and knowledge to any business situation. Your coach will guide you with proven systems and strategies that will allow you to make more profit whether you need more time, a better team, and more money.
You’ll be in the “driver’s seat” of your own business equipped with a “map” and a “license” to take it wherever you want to go with us by your side unlocking the potential of your company.
: We Guarantee complete confidentiality. Our Coaching relationship with you will involve trust and understanding about the nature of our strategy and of your business. We guarantee the privacy of our work together.
: We Guarantee a personalized approach to your business. Your business is unique, and since you are relying on our vast construction industry business experience, we guarantee a full disclosure of the programs we recommend to you. We shall meet your expectations with the desired outcomes and results.
: We Guarantee to show you how we define construction business success, and how to build a commercial, profitable enterprise that works with or without you. Even if you are an owner who loves business and who loves working “in” your business every day, we will show you how to build a company you can work “on” whether you show up every day or not. Regardless of your ultimate goals, you will learn the strategies, systems, and advantages of our definition of a successful business.
If you want to learn more about our construction business coaching contact us now.
Reitenbach-Kissinger Success Institute
LinkedIn Profile: https://www.linkedin.com/in/michael-kissinger-a66b214/