Nailing It: From Start-Up To Scale-Up
Nailing It: From Start-Up To Scale-Up
Starting a construction company is largely a feat of grit, but scaling your business requires attention to the systems and processes that will carry you forward. For many construction company owners, launching is based on credentials as a builder or craftsperson, and a scrappy approach to networking and building. Sustainable growth doesn’t just come from “lucking out” on bigger bids. Scaling-up requires having a solid organizational structure and repeatable processes. Follow these pointers from pros as you build a foundation that will power your company for the long haul.
Grit, Determination, Ingenuity, and Laziness?
Summing up what it takes to master scale, Reid Hoffman, the co-founder of LinkedIn, has famously offered this point of view: “Hard work isn’t enough. And more work is never the real answer. The sort of grit you need to scale a business is less reliant on brute force. It’s actually one part determination, one part ingenuity, and one part laziness.” Grit, determination and ingenuity—sure. But, laziness?
Of course the clue for scaling your construction business has nothing to do with actually being idle. In Hoffman’s perspective, “laziness” is avoiding the time drain of having to do the same task twice by building systems to drive efficiency. Similarly, construction industry pros emphasize the necessity of developing systems and processes for all aspects of the business, despite, or, even because of the challenging number of variables involved. From weather, to materials to field conflicts, and more, so much can shift in a moment and go wrong in construction. That’s why, as construction business coach, George Hedley underscores, sustained success requires standardized systems and processes:
- Successful construction companies work hard and enforce standardized systems and controls to lower risk factors, eliminate potential problems, reduce the chances for things to go wrong, and improve their odds of achieving results.
- Some examples of systems and strategies that improve project results include pre-job planning meetings, weekly job cost production scorecards, tool and equipment checklists, regular training sessions, pre-installation inspection reports, and detailed subcontracts with inclusions and exclusions clearly identified….
- To produce optimum results on your construction projects, you must have a system that guarantees performance 95% of the time….
- To improve your field and project performance, standardized and utilized systems will improve your chances of eliminating problems, errors, rework, callbacks, or over-budget completion.
Goals, Roles, Tasks
Systems and processes don’t just apply to business functions like payroll, bidding, and equipment decisions. People need systems and processes too. While a start-up might get by with some “go team go” pep talks, a growing company thrives only when everyone knows the score. Avoid the cost of confusion by taking the time to break goals down into specific tasks, as Kate Zabriskie at Construction Business Owner advises:
Imagine a team starting a project with energy and optimism. Ideas are flying, everyone’s ready to contribute and the excitement is high. But a few weeks in, the team is struggling, and the wind is out of their sails. People are frustrated, deadlines are slipping and, despite all the effort, they’re behind….When teams aren’t clear on goals, roles and tasks, even the most talented group can lose direction…..When roles and responsibilities are unclear, accountability fades. If something goes wrong, the response becomes “not my job”…..Blame circulates, and soon the team is more focused on defending actions than solving problems … .Clarity isn’t just nice-to-have — it’s what keeps teams aligned, productive and, yes, drama-free. When everyone understands the bigger purpose behind their work, their unique role and the tactical steps needed to get there, teams don’t just function — they thrive….
Technology and Strategy Too
Needless to say, choosing and leveraging the right tech tools to drive a growing business forward is another key to success. As the makers of software for project based businesses at Deltek remind us: “Investing in construction accounting software, project management tools and field communication apps can streamline operations, improve collaboration and enhance profitability….Using mobile time-tracking apps and cloud-based document storage can improve efficiency and reduce administrative burdens.”
The right tech solutions for your business should arm you with the data you need to make informed decisions about your company’s growth plan. When setting and adjusting a strategic path for sustained growth, industry experts also advise:
- Developing a business plan that outlines expansion opportunities and risk mitigation strategies
- Exploring diversification, such as expanding into new services or markets
- Keeping up with industry trends and emerging technologies to stay competitive
- Seeking guidance from construction business coaches or industry mentors
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