Construction Business Systems- Six Steps Toward Automated Success

Author: Dave Fadorsen

Success in any construction business is in direct proportion with the quantity and efficiency of systems the owner has implemented.  These are the six critical areas of your business that must become systemized in order to begin to achieve true success.  When you have good systems set in place, you will be free to work on additional Wealth Attraction resources. 1. Time Management Systems The most critical thing to getting started is a fool-proof and organized way to manage your time. If you cannot gain control over your own time, it will be very difficult trying get even more done in a seemingly shorter amount of time. Use whatever system you are comfortable with. Some owners simply have a one-sheet To Do List each day and that is enough. For others, a more complex Day Planner or scheduling software & PDA is the way to go. At the very least, start doing whatever you feel comfortable with and can manage. You can always add to, or take away from, any system you set up. That’s the beauty of a good system: always dynamic and flexible. 2. Bidding & Estimating Systems You need to get a handle on what you are bidding. In a tough stretch, the average contractor will tend to bid everything coming down the pipe with the hopes of getting more work to keep the cash flow coming. Losing track of your original focus without measurable response and testing tools in place can have some unintended consequences. A system of tracking your bids in a way that you can get a grip around what types, sizes, locations, etc. is essential. 3. Contracts, Forms & Document Systems Here’s a question I asked when talking to a group of contractors. “Can anyone tell me what contracting is all about?” I got everything from making money to building customer relationships to lawsuits. The correct answer is — drum roll please — CONTRACTS! Contracting is all about contracts. C’mon people. Although the lawsuit guy was close. If you don’t have a system to generate, review, modify, sign, file and follow the contract, that’s more than likely where you’ll end up. 4. Project Management Systems Project management means many different things to many different contractors. Only you can decide how detailed you get with your Project Management systems. A painter may have only one job at a time and have only one employee. Her system will look a whole lot different than the commercial general contractor with $10,000,000 in annual sales, but a system, however, is still mandatory for automated success. 5. Financial Management Systems You must do three, and only three, things to always make a profit in the construction industry: A. Cover the job costs B. Recover your overhead costs C. Have money in the bank after A & B are met Easy, right? RIIGGGGHHHHHT! This is why it is mandatory that you implement a system to track the trail the money leaves. You need to have every penny accounted for along the lines. Not only to make sure it doesn’t grow legs, but also to give you firm, honest, measurable feedback on the accuracy of your estimating, the true cost of your overhead and the real amount, if any, is actually left over. Without this system you will truly be in the dark forever, wondering what happened at the end of the road. 6. Marketing Systems Marketing is by far the most misunderstood business function. The vast majority of contractors out there thing of marketing as simply placing the next ad in the local daily newspaper. Even a smidgen of a Marketing system will put you head and shoulders above your completion. Many “marketing professionals” will argue to the death about the true definition of marketing. For our sake, I will define the marketing process as follows: Getting the right message, to the right audience, at the right time, in the right way, Then keeping the customer satisfied. Think about marketing this way. Marketing is everything you do. Everything. The ultimate goal of your marketing system should be a satisfied customer. A satisfied customer is arguably the most valuable asset a construction company could possibly have.

Article Source: http://www.articlesbase.com/management-articles/construction-business-systems-six-steps-toward-automated-success-695305.html

About the Author:
Dave Fadorsen, Founder of The Consolidated Construction Group, is known across the industry as “The Construction Guru.” With over 19 years in the business and as a consultant, author and publisher of successful contractor’s business strategies, Dave has his finger on the pulse of today’s construction business heartbeat.

His no-nonsense style and unique take on finding and fixing your weakest links will undeniably give you that edge you’ve been looking for.

To sign up for his free seven-day eCourse about How To Build A Profitable Construction Business, VISIT http://MyConstructionArticles.com NOW! Big things are just around the corner.