Growing a construction company involves a lot of variables to maintain business success. Move too fast and missteps are bound to happen. Go too slow and you lose out on opportunities. It is a balancing act and deciding on when to throttle the business is stressful.
Below are some preconstruction variables to “level up” your business.
Chase More Projects
This isn’t rocket science. You want to grow your business so you pursue more projects. More projects mean more revenue. But does it equate to more profit? Maybe but maybe not. If you win similar size projects you may lose out on profit because your headcount likely didn’t increase but now you are spreading your resources more. However, that doesn’t mean you need to go hire more people on the spot! It may mean that your processes need to become more efficient (see “Become a Lean Machine” below). Plus, if you use integrated preconstruction technology it will feel like you have more staff because you are able to do more value-added tactics! This is the secret sauce to chasing more projects: efficient processes using integrated preconstruction technology leads to more revenue. And, because you are an efficient machine, greater profits.
Pursue Bigger Projects
If your current size of won projects are keeping the company afloat then pursuing bigger projects will increase your profit margin. Right? Well, not really. Bigger projects come with more cooks in the kitchen, more coordination, and usually have a longer timeline to complete the project. But here’s the rub … that’s only if you keep doing business the way it has always been done! Pursuing bigger projects means handling more data, more breakouts, reducing risk of formula errors, etc. If your preconstruction tools are disjointed and not sophisticated then the project owner may not have the confidence in your seasoned professionals to complete the job. Using a sophisticated and legit preconstruction technology platform will not only build confidence across the project team but it will also set you up to pursue the next bigger project.
Become a Lean Machine
Construction cost estimating has non-stop activity. Along with non-stop deadlines. If the processes to manage the non-stop activity and deadlines aren’t efficient then the pursuit of more projects and bigger projects will be hindered. Cutting out the fat of preconstruction may include switching to an actual estimating software (yes, we are throwing shade at Excel), utilizing a database to pull in costs (our throwing arm is getting tired of all the shade being thrown), and integrating technology so you aren’t hopping around platforms.
Morph into a Data Master
When preconstruction becomes a lean machine those construction professionals will transform into the best weapon a construction company has to grow the business. They become data masters! So much data flows through preconstruction that being able to hone in on trends, pick up on fluctuations, and pull in historical information on similar projects will then make the company more efficient. Having data at your fingertips then gives the company insight on when to throttle the business. Which leads to sound decisions on chasing more projects and pursuing larger projects.
Beck Technology believes every construction company, from those working on $200,000 projects to $20 billion master plans, can level up their business. The process of business growth also comes with better decisions that creates an improved construction industry.