As a company, we’ve done over 2500 contract reviews so we know what success looks like. Today’s video is about The Things That Successful Construction Businesses Have In Common – watch the video by clicking here or continue with this quick read.
REPUTATION Warren Buffett famously said “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
Look at the projects you’re going to take on, consider pricing, and then align this with how you think it’ll impact your reputation.
If you think about your reputation in the construction industry, it’ll make a huge difference to how successful you’re going to be.
Reputation means TRUST. And especially when times are tough, people buy according to trust.
In construction, when you need to get the job done, you hire people with a good reputation above all else.
So the lesson is, consider your reputation at all times. And don’t be afraid to turn down jobs if you think you won’t be able to deliver.
The majority of the multi-million dollar businesses that we’ve worked with are family owned.
What makes a family business successful?
Simply, THEY THINK LONG-TERM.
It’s not about the next project… it’s about five or ten years time.
They think about legacy and the future.
With a long-term view, you mitigate a lot of risky behaviour.
With this mindset, you approach every decision carefully and strategically. This results in a greater chance of LONGEVITY.
CASH FLOW You’ll have heard me say that Cash Flow is King.
There are many elements to cash flow but one of them is being able to charge a higher price and request an upfront payment. If you have a solid reputation this won’t be a problem.
When cash flow is strong you can run a much better project. And this of course impacts your reputation.
KEEP OVERHEADS EXTREMELY LOW One of the best ways to succeed at anything is to live beneath your means.
All too often we try to keep up with the Joneses.
The way to succeed is to keep your overheads low.
In construction, this means saying NO to:
- Fancy offices, and fancy unnecessary equipment.
Every month you should ruthlessly cut down on anything unnecessary. Doing this will mean that your business can withstand the good times and the bad times… and as we know construction is all about highs and lows.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.