Managing a construction business is extremely challenging. This is why firms partner with Sarasota construction attorneys to ensure that they are compliant with federal, state, and local laws. At Cotney Construction Law, we also help firms grow their business by assisting with the bid process, tax laws, creating contracts for all your projects, among many other services.
Although partnering with an experienced attorney can put you on the right track to success, in order to grow your business, you must first be aware of common issues that have undermined construction companies in the past. For example, in the first, second, and third parts of this article, we discussed companies that are fiscally irresponsible, inexperienced, or in violation of important labor or safety laws. In this section, Sarasota construction lawyers will discuss companies that try to grow too fast or experience a lot of turnover.
7) They’re Too Ambitious
There’s an art to growing your business. Many construction companies fall victim to trying to grow too quickly. When trying to expand your business, you have to consider the resources you have available to you, the leadership and workforce you will require, and the strategy needed to successfully implement this. Construction professionals often use the term “building a backlog,” which entails focusing your attention on one project but incrementally adding on to bigger and better projects over time. When you overextend yourself too quickly, offer services outside of your niche, or take on projects beyond your capabilities, mistakes are more likely to happen, which can cause businesses to go belly up.
8) Turnover is Hurting Your Business
Construction experiences one of the highest turnover rates of any industry. With a skilled labor gap, the market to recruit and retain talented workers is only becoming more and more competitive. The success of a company is rooted in the quality of the people that make up the team. Aside from a competitive salary and benefits, employers need to consider how they can make their employees feel valued and be part of the growth process. On-the-job training, investing in additional education, and consistent performance reviews are a few attractive ways to create a company culture that keeps your most talented workers engaged and excited to be part of your company. When you fail to attract and retain the right people, the quality of your work will suffer.
For more information on why your construction firm is failing, please read part five.
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.