Running any type of business comes with its challenges. Running a successful construction enterprise can be even more challenging considering the myriad of hurdles a contractor needs to overcome to complete projects on time and under budget. Of course, when you’re the CEO of your own construction firm, you can’t only focus on the tasks being performed on the jobsite. You also need to consider ways you can grow your business.
In this five-part article, Sarasota construction attorneys with Cotney Construction Law are discussing several of the potential pitfalls that construction firms can fall victim to. As we discussed in the last part, this includes poor cash flow management and failure to track your project-by-project profits and losses. In this part, we will focus on newly established construction businesses that don’t have the experience or strategy in place to successfully scale out their business.
3) You Don’t Have Experience
There’s a lot you can learn from your mistakes; however, a costly mistake in construction can dramatically impact your business. Many inexperienced contractors focus on the volume of business they’re performing thinking the more work coming down the pike the better. This can be a slippery slope as material or labor shortages or adverse weather can push back one deadline and create a domino effect for all upcoming projects. Once a contractor experiences this, they must adopt a new process.
Another issue that we discussed is the overly ambitious contractor that doesn’t have the logistics in place to take on a project and fails. Whether it’s working in an area that you’re not familiar with, performing work outside your niche, taking on a new construction process on a big project, or navigating your way through the bid process, a firm can improve any of these processes with the help of a Sarasota construction attorney. That being said, it’s never a good idea to dive into the deep end of a project when it’s outside your comfort zone.
4) There’s No Strategy
Focusing on attainable and manageable goals is always an important part of developing a business plan. Every business owner needs a long-term vision for their company and they need to convey this message to their team leaders to ensure everyone is on the same page. Whether it’s managing a workforce, tracking finances, developing a reliable recordkeeping system, and creating a succession plan, any of these elements requires a significant amount of foresight.
Another important thing to consider is shifting your focus from performing every task to delegating these tasks to the right people. If you overextend yourself, you can lose focus on the critical, high-level objectives that need to be accomplished because you’re too busy focusing on other aspects of your business.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.