Jun 10, 2016
Three simple questions contractors need to ask themselves to ensure your company and brand continues growing cash flow and profits.
Three questions that if all owners of failed construction companies had asked themselves, they might have survived and thrived. They are simple, obvious questions, but how you answer them will determine if your construction company will stand the test of time.
There was a time when a contractor put a simple ad in the paper or a line listing in the Yellow Pages, and they would have more leads than they could handle. It was the only way to go and the contractors who insist on that and "Word of Mouth" do not survive.
Could Those Contractors Have Avoided Failure?
I believe they could have. This article explores three key questions that every contractor needs to ask themselves. They need to answer them in ways that provide a clear path to continued and future growth and success.
Contractors who did not move from simple ads that had always worked and evolved a Marketing Plan made the same mistake other failed companies and brands made. They failed to Innovate, Reinvent, and Evolve by having a deep understanding of what business they were in, who and what they were competing with and by challenging themselves to understand what their real expertise was.
1. What are you offering? New construction, remodeling or service and repair?
2. Who are you competing with? DIY, other contractors, the available cash homeowners have to spend?
3. What is your real competency? Residential, Commercial or both?
Challenging yourself extensively is the key to answering these questions. Write your answers on paper or computer, sleep on them and then revisit them again and again until you get to the truth. The Truth Is Four Levels Deep!
Getting The Leads And Doing The Work Is Only Part Of The Answer
Not answering them and acting on the knowledge is one reason why so many contractors companies shrivel and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat to compete with. As a result, they miss what they could be doing to succeed and prosper over time.
Something that was repeated in the transportation business when the jet plane destroyed most of the lucrative transatlantic liner companies in the late 1960s/ early 1970s. Jet Planes and the new companies behind them destroyed all of the liner companies except for Cunard.
In the 1970s when jet travel destroyed all of the other transatlantic boat services, Cunard focused on re-inventing their offer by focusing on their competency and by actively competing with the new threat.
They launched into “The Best Way to Cross”/ “Crossing is Half the Fun” campaign and on defining what they should be offered in the form of luxury ships (like Queen Elizabeth 2) and their unique White Star Line service. Today they have a growing fleet of premium ships and are seen as the icon for cruising.
Define The Type Of Contracting You Offer
And Who Really Is Your Competition
It may not be the same form, structure, and category that you operate in. For example, Home Depot does not see themselves as competing in the building supply business, but for a share of the home and commercial remodel and repair market.
Be that homeowner doing a weekend project, Handyman Contractors, Remodel Contractors, Trade Contractors as well as other contractors and House Builders. This drives a very different approach and behavior across the organization too if they just saw themselves as fighting for a share of the building supply market.
It is very easy to get caught up in the short term and what you have today. You measure your share in the very specific segment you operate in and over obsess about your immediate competition.
Just as contractors who did not market effectively did years ago. But you need to step back and ask yourself the three key questions and make sure you answer them in a way that will define and liberate your construction company at the same time.
1. What are you offering?
2. Who are you competing with?
3. What is your real competency?
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email email@example.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
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This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
Thank you very much and I hope you understand we really do care
about you and all contractors regardless of whether or not you ever
hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.
Randal DeHart | Contractors Accountant