Today’s video is a response to this, From $0 to a Successful Construction Company: The Ultimate Guide. You can watch it here or continue with this quick read.
So first off here’s what the video said…
- The people who have good construction companies know what they want and they write it down on a piece of paper.
- They plan their work and they work their plan.
- They engage a theory called “bread for the head” (so they read consistently and build knowledge)
- They use leveling (i.e. they have mentors etc.)
- They build a construction company by using business process management marketing and accountancy systems.
If you abide by these principles all I can say is GOOD LUCK.
And insert an eye roll… 🙄
So here is how I think it should be done…
It’s not how hard you row, it’s what type of boat you’re in.
Warren Buffett said that.
Before starting a business you need to think about…
- What type of construction company are you going to have?
A developer? A subcontractor? A general or main contractor? Etc.
When you make this decision you need to think about margins. Subcontracting tends to have better margins and allows you more control.
Then if you look at the subcontractors who tend to make the most, it’s those who work on the outside of buildings…
- Windows
- Cladding
- Roofing
This is because they’re supply and install businesses.
Because of where they are in the build schedule they also don’t get hit with the snowball effect of delays as much as subcontractors who come later in the build.
Short story… You don’t get blamed for delays nearly as much.
Then think about…
What is your business money model (how are you going to charge for work)?
THE WORST BUSINESS MODEL IS WORK NOW PAY LATER.
The best model is to get as much money upfront so that your cash flow is protected.
You also want to control who services/maintains the work once you’ve completed the installation. Best case scenario you build in a clause where you are responsible for this so that you have future income.
YOU NEED TO KNOW WHAT BUSINESS IS GOING TO MAKE YOU THE MOST MONEY.
Obviously, you need
- Skillset
- Passion/purpose
But it’s REALLY important to have PRACTICAL knowledge about what’s going to help you make more money.
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.
