Construction Companies: Five Goals to Set for Successful Growth

By Matt Grigsby, CPA, MST

 

While the chaos of the pandemic has caused a lot of uncertainty in the construction industry, solidifying goals for your business makes it much easier to move forward, even during difficult times. Though they will vary from one project to the next, these five goals will help your company see consistent growth.

#1: Always set project safety standards

It's easy to set company safety goals, but that doesn't necessarily translate to action in the field. Here’s what you can do to ensure your company's safety programs will be followed at every job site:

  • Prior to starting any project, create a plan identifying possible risks and arrange mitigation to prevent issues arising from those risks.
  • Take the time to communicate that plan not only to your management, but to the rest of your team members to ensure safety on the job site.
  • Let employees know they can communicate any safety concerns with management without repercussions.

#2: Evaluate communication and teamwork from within

It takes more than leadership to meet goals, requiring everyone to be on board with the plan. Your entire team needs to be able to work together and communicate effectively, so constant evaluation in these areas can make a big difference in your company's performance. Your teams should not only meet in normal preconstruction meetings and project handoff discussions, but also go through a “hot wash,” or after-action review, following project completion. This allows everyone to share what needs improvement as well as what was learned from that project. Project managers and foremen need to understand the importance of accurate, timely communication with other departments. When everyone knows how financial statements are impacted by accurate data from the field, it’s easier to make the company grow and keep efficiency at peak performance.

#3: Develop a strategy

It's easy to get stuck dealing with daily issues of your business rather than thinking about it strategically. However, if you and your team can't follow an underlying strategy, managers may create competing goals or priorities – ultimately wasting time, effort, and assets in the process. To start, you'll need to create a strategic plan by determining your company's vision. After you've documented the vision you have for your company, it's much easier to develop a strategy to get your business to that point. It's easy to get caught not knowing where you should start and get stuck wondering which direction you should go in. If you're stuck here, start by looking at your metrics and make sure you can easily make smart goals for your company and keep your business on track for growth. By knowing your overhead costs, your company’s profitability, and other metrics, it's much easier to work with a trusted advisor to set your business goals and stay accountable to them across the year.

#4: Prioritize creating and communicating a succession plan

Lack of planning for continuity of business is one of the biggest causes of business failure outside of economic crashes. Businesses that don't have backups before a disaster, companies that suddenly lose their owner, or unexpected crises within the company all can cause a company to fail. Make time to prepare a written, documented plan for succession. Beyond ownership transition, create a contingency plan. Many companies fail to undertake this planning until a tragedy happens or someone leaves the company unexpectedly. Plans should be written and communicated to the right people, and employees should be cross trained to help improve company response to an emergency.

#5: Upgrade your cybersecurity

To keep your company operating effectively now and into the future, staying current with changes happening in the industry is key. This includes digital transformation and the risks that it entails. Updating your cybersecurity and staying on top of changes in digital security are vital to your company's growth. Protecting your data from cyberattacks is something that needs to happen no matter the size of your company. By staying proactive in your cybersecurity with issues such as risk assessments, vulnerability scans and internal controls, you can provide solid growth for your company.

Making these goals happen for your business

If you look at this list and don't know what exactly you need to do to get started, working with an advisor who can help your business set and achieve goals can make a big difference. An advisor who understands the construction sector not only can help you set smart goals, but also can provide an experienced viewpoint on your company. Perhaps most importantly, they can provide accountability for your goals.

You can learn more about planning and goal-setting opportunities for your organization by joining Rehmann’s Empowered Planning series of webinars. These complimentary webinars and Q&A sessions are taking place throughout this year and provide expert insight and real-time examples of organizations and individuals who are seeking to build and maintain a strong financial foundation during these changing economic times. Learn more about the series, which is focused on planning ideas to help you move forward confidently, at Rehmann.com/webinars. 

Matt Grigsby is a principal with Rehmann, working out of the Traverse City office. Since 1998, he has been providing tax consulting and compliance services to a broad range of clients, with a focus on family-owned and closely held businesses and their owners. His experience includes federal and state taxation matters in the fields of real estate, construction, manufacturing, and retailing, as well as those of high net-worth individuals.

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