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Procrastination is Not a Good Plan for Making Changes

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If Not, Why Do So Many Do It?

This is the million-dollar question. And it actually may be. The amount of dollars lost by procrastinating is costing money and a lot of it.

Decisions have consequences.

Every decision we make every day comes with consequences. Some of those consequences may be good, some may not.

Every day of our lives is full of decisions. It’s like playing a non-stop game of “would you rather”.

Most everyone is familiar with this game in which the players are asked questions that compare two different scenarios and asked to choose which of the two they would rather do. These questions can vary from simple to complicated.

Would you rather…

  • Spend a day in the Sahara Desert or Spend a day at the North Pole
  • Have the ability to fly or Be invisible
  • End hunger or End hatred

This game isn’t any different than everyday life. We are faced with choices every minute of every day. Some of these choices are small and simple, some are important and carry major consequences.

Would I rather…

  • Eat this or Eat that
  • Wear this or Wear that
  • Drive this route or Drive that route
  • Go in debt to buy a new car or Save money and drive something older
  • Take this job that pays well but requires me to sacrifice my morals or Take that job that pays considerably less but allows me to be true to my principles
  • Take the scary step to implement tools in my business that have the potential for success or Continue doing the comfortable things the way I always have with the potential for failure

This week I listened to a Ray Edwards podcast that asked the question, Why People Don’t Change. This comes back around to the question…

Why do people put off doing something that they know would help them be more successful?

Here are a few of the points that Ray makes:

  • Change happens when the pain of not changing is greater than the difficulty of making the change.
  • The fear of not changing is often overshadowed by immediate gratification, making it difficult for people to prioritize long-term consequences over short-term pleasure.
  • To change, you need to make the future pain of not changing more real than the current pleasure.
  • People don’t change unless they associate significant pain with not changing and take ownership of their ability to change.
  • Enjoy the process of pushing yourself to achieve your goals, not just the end result.

Resistance to change is a real problem.

Just consider the situation of someone in an abusive relationship and their unwillingness or inability to make changes when they know that they need to. I’ve never been in a relationship like this, so I’m not claiming to understand this emotionally.

When it comes to business decisions though, I understand them and agree completely with Ray’s points.

Ultimately your business decisions are up to you.

You can continue to procrastinate until you either garner the courage to change…or until you go out of business. It’s up to you.

If you would like to change, we can help you with that. We have tools for the construction industry available in our Business BUILDing Toolbox. You can learn more about the tools and training here or you can schedule a free 30-minute construction company consultation to get your questions answered.

Why Are People in Construction so Bullheaded?

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That’s a Question That’s Going to Take Some Research

Have you ever noticed how stubborn people in construction are? From my experience they are some of the most headstrong and obstinate people you’ll ever meet. Why is that?

This past week in my mastermind we were discussing my friend Shep Jordan’s new book, Step Into Your Legacy. This book is about the importance of young men having good mentors and how good mentors are becoming more and more rare.

In this book, Shep takes you on his personal journey to manhood, guided and mentored by 6 remarkable men whose stories had a profound effect on his life.

Our mastermind discussion was about who the book should be targeted to. Young men who need a mentor or older men who need help with being a mentor?

Of course, the answer is both.

The problem with targeting young men is that many of them don’t think they need any help with anything, after all…they already know everything. This attitude might make it harder to get them to accept help.

This got me thinking…

People in construction are like those young men…they think they already know everything.

One of the recurring discussions I’ve had with people in the construction business over the years is about my business tools and systems. They would say how they need systems like I have. I’ve offered some of these tools to them, and the same thing always happens. NOTHING.

It’s like they are so bullheaded that they’re not willing to make any changes.

They know they need to make some changes, but just won’t.

So why is it that people working in construction are so bullheaded?

When you call someone bullheaded, you’re commenting on their obstinate nature, and maybe implying that they’re not very smart. Maybe you’ve seen bullheaded people act without thinking.

The word dates from the early 19th century, from the idea that a bull charges forward with strength and determination, but without any thought or contemplation.

It’s a little like a dog with a bone or a tennis ball. I know that when we’re throwing the tennis ball for our dog, and she brings it back she will not let go, no matter how long or hard you pull. This isn’t to her benefit, if she’d just let me have it, I would throw it for her again.

Hopefully, as humans we’re smarter than dogs and bulls.

I don’t think that it’s an issue of bullheaded people not being smart…maybe even the opposite.

After doing a little research, here are some traits of being stubborn.

We often think of being stubborn as a negative trait, but being a little hard-headed sometimes comes in handy. It helps you stand your ground and not give in to people out of peer pressure or guilt. It does pay to compromise in certain situations, but you also must know when to stand firm with people.

Here are seven traits of a bullheaded person –

  1. They have a strong will – They don’t hesitate to follow through with something they believe in. If they have a vision, they will accomplish their goals, come hellfire, or high water. This mental vigor pays off because you can’t reach your destination if you have fears about even leaving the driveway.
  • They have resilience – They feel that they must do everything on their own. Nothing got handed to them in life, and they know if they want something, they will have to work for it. However, no challenge intimidates or scares away a stubborn person. They will work 16-hour days if they have to in order to accomplish their goals.
  • They aren’t swayed because of peer pressure – They won’t cave just because no one agrees with them. They’ll make their points, have evidence to back them up, and stand their ground even if no one stands with them. While some people will just go with the herd because it feels comfortable, a person with pride doesn’t let the groupthink mentality affect them.
  • They are passionate about life – They don’t like to back down from a challenge, they have a lot of passion and vigor for life. Nothing seems off-limits or impossible for them because of their willpower and determination to get things done.
  • They have a good work ethic – They have high standards for themselves and enjoy getting the job done, no matter what it might entail. They typically do better working alone because of their sometimes combative nature, but if they can tone it down a notch, working in groups doesn’t present a problem. Having pride in one’s work only becomes a problem when people trample on others or don’t consider their opinions.
  • They resist change – They often have a resistance to change because they like things the way they are. This inflexibility might just be their downfall. Life changes constantly, so having an open mind and a willingness to go with the flow can be a problem for stubborn people.
  • They like to argue to prove a point – Not backing down in a discussion is one thing, but taking it too far sometimes means instigating arguments just for the sake of arguing. Stubborn people have an insatiable need to be right, and they see arguing as a fun pastime.

After looking over the research about stubborn people, I found that there’s more good than bad to being bullheaded. This research makes perfect sense why people in construction tend to be bullheaded. These traits are what are needed to fight daily construction battles.

The important thing is, if you are bullheaded, be aware and understand how to use it so that you don’t just keep charging ahead like a bull in a China shop. You need to be willing to make some changes when it would be good for your business.

Speaking of changes, if you or someone you know is in the construction business, we are currently offering our Business BUILDing Toolbox at a reduced Holiday price of $172. But don’t’ act like a dog with a bone because it’s going up $25 every week from now to the end of the year!

If you have questions about the Business BUILDing tools and how they can help you build the construction company of your dreams you can schedule a free 30-minute construction company consultation here.

How Can I Ever Get Everything Done?

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Trying to Spin Too Many Plates at The Same Time Can Make You Dizzy

Maybe you’ve have seen a plate spinning act in some form or another. There are multiple plates spinning simultaneously on the top of sticks. The performer is running around trying to keep things from crashing to the ground.

When I was a kid, I remember watching Erich Brenn perform his plate spinning act on the Ed Sullivan Show. I remember him running back and forth, trying to keep all the different plates spinning at the same time. It was amazing…and a little stressful.

The same thing happens in our lives when we try to do too much.

The number of things we’re trying to get done just increases around the Holidays. I know the last couple of weeks I’ve have felt like I had a lot of plates spinning.

Erich knew what he was doing and had a system for keeping those plates spinning, but it was only sustainable for a short period of time.

Most construction companies operate this way, they’re trying to do too many things at a time. Just like the performer who keeps putting more and more spinning plates up on the end of sticks, we keep trying to do more and more.

There is a limit to how much a single individual can do. We can only run back and forth keeping the plates spinning for so long before they start crashing.

Trying to run a business without a plan or structure just increases the odds for failure.

To build a successful business there needs to be a sustainable process for keeping the plates spinning and this starts with a plan. It’s much easier to share and understand a plan when it’s drawn out. Just like constructing a building can’t be done when the blueprint is only in someone’s head.

Most construction business systems are similar. They consist of the same basic areas of operation.

Sales/Marketing

  • Prospecting for customers
  • Follow up on leads
  • Meet with prospective customers
  • Pricing and Proposals
  • Sales Reports
  • Advertising/Promotions
  • Marketing and Sales Planning
  • Customer Relations
  • Market Research
  • Public Relations
  • Product Development

Production/Operations:

  • Project Management
  • Project Assignments and Scheduling
  • Productivity Monitoring and Control
  • Quality Control and Documentation
  • Production Team Prep. & Development
  • Communicate with Team Members
  • Project Troubleshooting
  • Inventory Planning and Control
  • Purchasing and Vendor Relations
  • Customer Service
  • Equipment Maintenance and Repair
  • Facilities Maintenance & Repair

Administration/Finance:

  • Computer Systems
  • Team Member Records
  • Team Member Policies and Benefits
  • Office Support
  • Office Maintenance
  • Information Archiving and Distribution
  • Data Processing
  • Communications
  • Contract Preparation
  • Budgeting
  • Invoicing
  • Cash Flow Forecasting
  • Financial Reports
  • General Bookkeeping
  • Accounts Payable
  • Taxes
  • Banking

As you can see here, even just the basics are a lot of plates to keep spinning and there are a lot more to spin than just these. All these plates going around and around will make your head spin.

This is why at Solution Building, we’re making available the Business BUILDing tools and systems that were developed and have been used for years at Timber Creek Construction.

The Business BUILDing Toolbox is currently available at a discounted Holiday price.

There are a lot of plates to keep spinning in a construction business. Why not get some tools that will help you keep your plates spinning?

If you have questions or would like to know more about the Business BUILDing Toolbox you can schedule a free 30-minute construction company consultation here.

Nothing Can be Built Without Action

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Too Many Times This is Exactly Where Dreams Get Left

Dreams don’t magically build themselves. This includes a dream business.

For years people in the construction industry have asked me where I got the business system and tools that I use in my construction company. After my accident in 2012, I spent a lot of time thinking about this. That was when it became clear to me that my business and life had been on autopilot without much intentionality.

Being hit upside the head caused me to think about my life and business and how they weren’t what I had expected them to be.

Not that things were terrible…just not what I had envisioned.

There was so much more that I wanted to accomplish. I had been going through the motions of living without acting on the plan.

At that point I decided to become intentional and take action. I’ve always been a planner, but it’s sad that it took a hit in the head for me to realize that planning wasn’t going to accomplish my dreams without action.

When we’re young the tendency is to think that we have all the time we need. There’s no hurry…we’ll get around to it someday. Then one day we wake up and realize life has flown by, and we haven’t done all those things we wanted to.

Don’t wait to be smacked in the head to take action.

Think of your life or business as a construction project. It begins with a dream but doesn’t end there. You can see the vision of the completed project in your mind. The tricky part is getting that dream out of your head and making it a reality.

Having the dream drawn out is a step in the right direction, but it’s only the first step. It’s a great time to make changes and corrections, rather than waiting until construction, but the building still isn’t done.

It’s good to have the help of a professional when drawing out your plans for building your dream. Their experience, knowledge, and skill can save you time and money. Done well, it will make the entire process more productive.

But a dream drawn on paper is still not done.

Too many times this is where the dream gets left. It takes time and effort to build, and the cost of building can be scary.

This is where having the right tools and systems can help you turn that business you’ve always dreamed of into a reality. It takes intentional action to build anything.

Take intentional action today.

After continually being asked about our business tools and systems at Timber Creek Construction, we knew there was a need. People in the construction industry were looking for help with building their dream businesses.

This is why we put our tools and systems in the Business BUILDing Toolbox. This toolbox gives construction businesses access to the tools that we use at Timber Creek Construction every day.

Normally $297, the Business BUILDing Toolbox is currently being offered at a Holiday price of $147 through Nov. 30th.

You can learn more about the Business BUILDing tools here or you can schedule a free 30-minute consultation to ask about them.

Don’t wait to be smacked in the head to take action because the business of your dreams isn’t going to build itself.

Some content from a previous post on May 26, 2018.

It’s Important for You to Have the Right Tool for the Job

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And There’s More to the Right Tool Than You Might Think

For those of you that remember the TV sitcom “Home Improvement” you’ll remember Tim ‘the Tool Man’s’ Taylor’s attempts to give “more power” to everything from cars to household appliances and the infamous ‘grunts’ that accompanied this.

Guys love tools. There’s something primal in getting a new tool and learning to use it.

You’ve heard it said, “The way to a man’s heart is through his stomach”. I agree this works pretty well. However, I would argue that an even better way is…give him a new power tool.

There is a tool out there for every job, usually more than one. As cool as they all are, they’re worthless if you don’t have them and don’t use them.

The biggest “tool” problem is…the lack of “business BUILDing tools”.

Most “construction guys” would prefer to use a circular saw or screw gun rather than a computer. Paperwork most likely isn’t what they think of when considering tools.

One of the most important tools in the “construction toolbox” is paperwork.

Profitability and the success of the company hinges on the accuracy and knowledge of income and expenses. It requires having the right tools, knowing how to use them, and then actually doing so. 

Some of the tools needed for BUILDing successful construction businesses are sales tools like construction proposals and contracts. Production tools like change orders and payment applications. Financial tools like job tracking, job profit/loss and savings account transfers.

When I started my construction company, I had no tools for BUILDing a business. Like most construction companies, I just guessed. After looking for business BUILDing tools and not finding what I needed…I developed systems that took the guess work out of running a construction company. I’ve been using and refining these tools for more than 35 years.

You can have these same tools by purchasing the Business BUILDing Toolbox (complete with templates, instructions, and examples of the tools). This way you can stop rolling the dice with your profits and take control of your money and your business.

Too often construction companies see the benefits of having tools and systems for their business but aren’t willing to spend the time or money. They can’t see the value. These same people wouldn’t think twice about spending hundreds or thousands of dollars to buy cordless tool kits or pneumatic nail guns and compressors, not to mention the price of things like skid loaders!

The real question is value…not price.

When considering tools, you should consider the return on your investment. Those power tools that you purchase are going to wear out over time and need to be replaced. The Business BUILDing Tools won’t. You can get the whole toolbox for less than the price of a good quality cordless tool kit and the return on that investment is priceless.

Having the right tools, knowing how to use them, and then actually doing so can be the difference of having a successful company or giving up and going out of business.

You’ve never been afraid of getting a new power tool and learning how to use it. Don’t be afraid of Business BUILDing Tools either.

You can learn more about these tools here or feel free to schedule a free 30-minute construction company consultation.

We are going to be starting a half price Holiday Special on Black Friday (Nov. 24th) with the toolbox price increasing $25 each week through the end of the year. So, be ready to grab your toolbox full of Business BUILDing tools at the sale price before it’s too late. Also, feel free to share this holiday offer with any construction companies that you think could benefit so they can take advantage of the reduced price!

Why Choose Trick over Treat…Isn’t Treat the Better Choice?

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You Would Think So, But Construction Companies Do It All The Time

Halloween is almost here. Most of us have done trick or treating as kids. You know, that tradition where children dress up in costumes and go from house to house asking for treats with the phrase “trick or treat”.

The “treat” is usually some form of candy/sweets, although it might be some other small gift. The “trick” refers to a threat, usually an idle one, to perform mischief on the resident(s) or their property if no treat is given. 

Sure, there’s some cost to buying the candy and it requires some time to answer the door and pass out candy, but given the choice…

As a property owner…a treat seems like the better choice.

If the treat is the better choice, why do construction companies continually insist on tricks?

I’ve written a lot about construction companies being scared to do things differently. They’re stuck in the rut of “we’ve always done it this way”. Trying to build your dream business this way is like being in a horror movie.

Everything is predictable. Rather than doing something different, they hide in the basement, the attic or behind the chainsaws, when they could just get in the running car.

Hiding behind chainsaws is what most construction companies do. They choose the discomfort of the known trick, over the uncertain treat.

I don’t think these companies started out hoping to have unhappy customers, or not have enough money to pay the bills, or to be working 70-80 hours a week for minimum wage.

The reason most construction businesses are stuck here is fear. They are afraid that trying something different might not work. They choose the discomfort of the known over the unknown.

It doesn’t have to be this way!

This is why over 30 years ago I decided that I wasn’t going to hide behind the chainsaws anymore and I got in the running car (okay, really it was truck).

Did everything I try work…no. Was it scary…yes. But I didn’t stop, I kept trying until it did. Then I worked on it some more to make it better. And then I started working on a new and different business tool or system.

This is where I figured out the 5-step business BUILDing process. I BECAME AWARE that what I was doing wasn’t working. Then as I researched, I began to UNDERSTAND the problems. Next, I compiled INFORMATION about what was needed and began IMPLEMENTING new tools and systems into my business. The more I used these tools, the more I LEARNED and the easier it became. This process led to BUILDing my DREAM business.

The great thing is, YOU don’t have to go through the long, hard, and scary process to build your dream construction business by yourself.

You can get the tools and systems that we use by going to the Business BUILDing Toolbox and get started quicker, and it’s less scary. If you would like to learn more about these tools and systems, check out the 5-step Business BUILDING Process. To learn more about how these business tools and systems can help you build your dream business, schedule a free 30-minute consultation.

Set yourself apart from your competition by choosing the treat over the trick.

Information, Instruction, and Implementation…This is Where the Real Work is Done

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Do You Think the Construction Business of Your Dreams is Worth it?

Last week we discussed how hard it is to keep a construction company from failing. If you have a construction company, this all-too-common outcome doesn’t have to be yours.

We’ve talked about how building a dream construction business starts with BEING AWARE of the issues construction companies face. The next thing is UNDERSTANDING these issues, which starts with asking questions and finding answers.

One of the biggest issues in construction is that most people in this industry are willing to do the hard physical work of building a building but will work even harder to avoid the work of building the business.

Building the business of your dreams is a choice.

Our lives are a string of choices, one after another, after another, after another, after another. These choices are the things that direct our paths through life and business.

We need to be aware of these choices and understand how they affect who we are. Understanding this leads us to gathering the information needed for building a business.

The INFORMATION that we consume determines who we will be.

Information comes from what we read, listen to, watch, and who we surround ourselves with. This is true for every aspect of our lives including our businesses.

Information is knowledge obtained through learning, investigating, experiences or study. It is the answers to questions that we ask. Knowing what’s needed to build a successful business begins with having the right information.

INSTRUCTION is an efficient way to consume information.

Instruction is advice or direction about how to do or use something. It happens when someone with more experience and knowledge teaches or trains others.

This lack of knowledge and understanding is why most people in construction don’t have business systems and tools. Sure, it can be learned without instruction over time, but why wait? Instruction is a more effective way to learn how to do or use things.

Don’t spend years by yourself in the “School of Hard Knocks” when is much quicker and less expensive to get instruction from someone who’s already graduated.

IMPLEMENTATION is making instruction and information real.

Implementation is the act of putting things learned into action or to use. This is where knowledge becomes reality. It’s where the rubber meets the road.

This is the scary part.

What if it doesn’t work right the first time? – It won’t.

What if I forget something? – You will.

What if it feels overwhelming? – It will.

Without implementing the things you’ve learned, you gain nothing.

This fear of failure is why most people choose to do nothing. They will just keep doing it the way they always have, knowing there’s a better way but just like the GEICO commercial, they’ll hide behind the chainsaws rather than getting in the running car.

Your construction business is worth the effort needed to gather the INFORMATION, get some INSTRUCTION, and IMPLEMENT what you learn.

If you would like some information about tools to help you build the construction business of your dreams, check out the 5-step Business BUILDing Process. Or if you need some tools for building that dream business, check out the Business BUILDing Toolbox. If you have any questions, you can schedule a free 30-minute consultation here!

Why is it so Hard for Construction Companies to Stay in Business?

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It’s Really Not That Hard…It Just Requires a Change of Perspective

It’s crazy the number of business that start and fail. Millions of businesses get started each year, but only a small portion survive. Why is it that 90% of all businesses fail? An article by Luisa Zhou is full of research-backed business failure statistics.

  • 18.4% fail within the first year
  • 49.7% fail within the first 5 years
  • 65.6% fail within the first 10 years
  • Only 25% make it beyond 15 years

There are countless reasons that businesses fail, but just because other businesses fail, doesn’t mean yours will too. Being aware of and understanding these statistics increases your chance of survival.

You can’t succeed if you don’t try.

If your dream is to own a successful construction business, you need to do your homework and then commit to it. Construction businesses do have a high failure rate, but that’s not to say you should avoid the construction business.

It just means you need to be aware and get prepared.

Listed below are five small business types with notoriously high failure rates.

  1. Restaurants – Independent restaurants have a failure rate of over 60% at the 10-year mark. The key to success is the ability to raise capital when needed. If a business owner cannot do that, there’s not much left but to close the doors.
  • Retail stores – Another business with intense competition is retail stores. Not only do you have to contend with other brick-and-mortar stores, but you also have online businesses undercutting your prices. Like independently owned restaurants, retail stores have a failure rate of over 60% at the 10-year mark.
  • Direct sales – Yes, it’s your own business, but if a friend asks you to become part of a multi-level marketing (MLM) business, say no. What you’ll hear are success stories. You won’t hear that, like a pyramid scheme, 99% of direct sales reps suffer significant financial loss. It’s the people at the top and the person who recruits you who makes money. 
  • Construction – Starting your own construction business is a tough gig. Construction businesses also have a failure rate north of 60% at the 10-year mark.

Not only do you have to be good at your craft, but you have to become a full-time salesperson, accountant, administrator, bookkeeper, and part-time counselor.

If you have a passion for building and offering unique touches that buyers can’t get from another builder, you’re off to a good start. The thing that’s usually missing is a business plan and the right business tools.

  • Insurance sales – Insurance agents face the same challenges of construction…wearing too many hats. They must be a master of administrative work, sales, and an ever-changing insurance scene.

If you’ve been in construction for any length of time, or know someone who has, you’ve become aware of how hard it can be to operate a successful construction company. Understanding the things that are needed to achieve this is one of the BUILDing blocks in a solid business foundation.

NOW WHAT? Now you need to change your perspective.

Perspective is a particular way of looking at something. This doesn’t mean it’s right or the only way. It just means that it’s our perspective.

Rather than assuming you’re the only one in construction dealing with issues you need to understand that this is not the case. These struggles are common across the construction industry. But changing your perspective is just the beginning.

Real change requires action. You’re going to have to do something.

So, what is the something that you need to do?

You need to lay the next block to BUILD the foundation of your business. This block is INFORMATION, INSTRUCTION, and IMPLEMENTATION. This is the third block in our 5-step Business BUILDing Process. Check back next week, and we’ll take a hammer to this building block to see what it’s made of.

It can be really frustrating trying to figure out how to build a successful construction business. But you don’t have to do it by yourself.

After owning and operating a construction business for more than forty years, I’ve developed business tools and systems that we are now making available to construction companies to give you an advantage over the competition.

If you would like to learn more about BUILDing a successful construction business, you can schedule a free 30-minute consultation here.

Why Understanding is Critical to BUILDing a Successful Construction Business

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Because Your Company is Too Important to Just Roll the Dice

Why is it that people operating construction companies are willing to gamble with their business? This random hit and miss business model is an all-too-common practice in the construction industry.

Somewhere along the way as we grow into the routine of life and business, we stop asking questions.

As kids we’re expected to ask questions. In school we’re taught to ask the five Ws (who, what, when, where and why) and how. These questions are considered basic to information gathering.

UNDERSTANDING starts with asking questions.

Asking questions is the first step to understanding success. The questions are more important than the answers. Asking questions is necessary to break out of routines. Questions cause us to dig deeper and ask more questions. If we don’t ask questions, we will stay stuck in the mundane habits of doing the same old things over and over hoping for a different outcome.

It’s like people in horror movies. If you’ve ever watched a horror movie then you’ve seen this. Teenagers are in a dark scary place and instead of getting out when they have the opportunity, they continue to hide in a basement, an attic, a cemetery, etc. The GIECO “horror movie” commercial is a great example of this.

If you don’t want your business to be ‘chopped up by a chainsaw’ you need to BE AWARE and start asking questions.

Asking questions leads to UNDERSTANDING.

Like any tool, if you don’t understand how to use it, what its purpose is, and how it works it won’t be any help to you when you’re doing construction. The same is true for tools used to build a successful construction business.

  • Sales tools like Proposals and Contracts
  • Production tools like Change Orders and Payment Applications
  • Financial tools like Job List and Savings Account Transfer Sheet

Understanding how these tools work, their purpose, and how to use them can be just what you need to build that business of your dreams.

Understanding is the mental grasp or comprehending of something. It is the knowledge about a situation, how something works or what it means. Understanding is also an agreement between two or more people. It is the sharing of thoughts and ideas of others and willingness to listen with an open mind. This kind of understanding leads to trust.

If you’ve been in construction for very long, you’re aware of problems like –

  • Balancing construction projects and paperwork
  • Feeling like your business is out of control
  • Keeping projects on schedule
  • No money for bills, taxes, or emergencies
  • Keeping projects within budget
  • Disappointed or upset customers
  • Communication breakdowns

You can either ignore these issues and keep doing things the way you have, or you can start asking questions and figure out what to do about them.

Questions like why…

  • Why should construction contractors do proposals? –

This question is the one that baffles me as much as any. How can contractors expect customers or production crews to know what work is going to be done and what it’s going to cost without some clear communication? I don’t think you would buy a truck without knowing what you were getting. I know I would be disappointed if I ordered a new $70,000 truck and when I got it, it was a 1999 ½ ton pickup missing a wheel and the driver’s door.

  • Why don’t contractors do proposals? –

The most common answer to this question is that they simply don’t know how. This is something that just isn’t taught. Most contractors start out doing construction, not paperwork. They figure out some guesstimation process and then wonder why customers are upset when they get a bill that is higher than they expected for less work.

  • Why does this customer want to do this construction project?

This should be the primary question that a contractor gets the answer to. It is more important than what. The “what” answer has a “why” answer behind it. The why question doesn’t have to be asked directly, but regardless, needs to be answered. The why is the foundation for the customer’s dream. A foundation is critical to building construction projects and dreams.

  • Why do we do the same things over and over expecting different results?

We all do this to some degree. Why? Why do we continue to repeat things thinking it will be different this time? We shouldn’t do things just because… “we’ve always done it this way”. The more we walk back and forth in a rut, the deeper it gets and the harder it is to get out. I heard it said that a rut is just a grave with both ends kicked out. Stop walking and determine if this is what you want and if it’s the best plan. If not do something different.

These questions are a starting point to understanding how you can BUILD a better construction business.

Like so many things out there UNDERSTANDING can be a scary thing. It may take us outside of our comfort zone and we don’t like that. We would prefer to be like the people in scary movies…and just go hide behind the chainsaws.

At Solution Building we’ve developed a 5-step BUILDing process to make stepping out of your comfort zone a little less scary. If you would like some help knowing which questions to ask or answering questions you have, schedule a free 30-minute consultation here.

What’s the Number One Problem Construction Companies Struggle With?

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It Would Be So Much Easier If There Was Only One Problem to Deal With

The construction industry is a complicated business and is only getting more so in today’s fast-paced world. If you’re working in construction, or know someone who is, you know how overwhelming it can be trying to keep up with the business.

As complicated and overwhelming as the physical on-site construction portion is, the business part is equally daunting. This includes things like budgeting, scheduling, communication, labor issues, planning, and cash flow to mention a few.

While researching the number one problem construction companies faced, it was confirmed that there is more than one problem, and they are common across the industry. Trying to ensure that projects stay on schedule, within budget, compliant with safety regulations, and running smoothly is difficult.

Wouldn’t it be great if there was only one problem?

Blackridge Research and Consulting is a market research and consulting organization. Their 2023 blog about the Major Challenges Facing the Construction Industry confirms what I’ve been saying for years.

Here are seven major construction industry problems –

  • Cost overruns – This is one of the top construction industry problems. This is when a project exceeds its pre-planned budget. A McKinsey study estimates that 98% of large construction projects deal with cost overruns of more than 30%. This is often caused by poor cost estimates during the planning phase, design change requests, and payment delays. This results in lower profit margins, material shortages due to running out of funds, damage to the company’s reputation, and delays.
  • Delays – The same McKinsey study also shows that 77% of construction projects are at least 40% late. Some factors that contribute to this can’t be controlled, i.e., weather, labor shortages, and equipment failures. But there are as many or more factors that can be controlled and prevented, including scheduling issues, project conflicts, and incorrect data. One of the best ways to reduce delays is through the use of technology but the industry’s willingness to adapt is a problem.
  • Push back on new technology – This is one of the biggest problems in the construction industry. Its hesitancy to adopt new systems and processes that could make their companies more efficient is a problem. Even when construction companies acknowledge that there are solutions that they could benefit from they tend to stick to the mantra, “This is the way we’ve always done it”.
  • Poor communication – One of the most prevalent construction issues is poor communication. Since construction projects require multiple people during the planning and construction, effective information exchange is crucial for the project’s success. Oftentimes, there’s a disconnect between the office and on-site workers. Poor communication is linked to a high percentage of construction problems resulting in complications such as unrealistic expectations and important tasks being overlooked. Keeping everyone in the loop by sharing obstacles and daily progress is a great way to avoid conflicts. Documented communication helps in cases where conflicts do arise.
  • Poor planning and budgeting – When projects aren’t planned well it leads to unachievable goals that can result in construction issues like stagnant productivity. It helps to break larger goals down into smaller and more attainable ones with daily objectives. In terms of budgeting, incorrect estimates can disrupt progress and can cause projects to be delayed or dropped altogether. It can also lead to a reduction in company profit.
  • Lack of organization and poor document management – This is another prevalent problem in the construction industry. Construction involves dealing with a lot of information, from contracts to material orders to receipts to insurance certificates. Document management is not something that people in construction typically like doing. Not doing it is inefficient and creates room for mistakes. Having a system that is digital allows for better access and centralizing important information.
  • Cash flow issues – Problems with cash flow can cause construction challenges. Having a steady stream of funds is crucial to paying employees, subcontractors, vendors, and suppliers on time. When payments fall behind, it further disrupts cash flow, halting project progress and causing delays. The reason so many construction firms struggle with managing a project’s funding is that they rely on outdated systems. Having more modern solutions can ensure that all payments are made and accounted for.

Dealing with these problems is the reason I developed the business tools that I use at Timber Creek Construction every day. Seeing other construction companies struggling with the problems is the reason I started writing about them on Solution Building.

Now we’re going to make these tools available to construction companies that are tired of feeling trapped with no way out.

We plan to open our digital Business Building Toolbox next week. These tools and training are designed to help construction companies build the business that they always dreamed of. We will continue to add new tools and training in the future. If you would like more information about these tools and training and how they can help your construction company with these problems as well as others, schedule a free 30-minute consultation here.