522: Increasing Construction Company Profitability Through Better Practices

This Podcast Is Episode Number 522, And It's About Increasing Construction Company Profitability Through Better Practices

If you feel overwhelmed by the sheer volume of technological gadgets, never mind apps and other digital "solutions,"; you're not alone. Technology sprawl and the rabbit hole of more and more information available all the time makes productivity—and healthy downtime—a real challenge for many of us.

Although we may be quicker at completing redundant tasks, more time is wasted managing all our different apps and technologies—and more of us live in a near-constant state of distraction.

An epidemic of distracted workers

Maintaining focus on the job is increasingly difficult in the era of social media, chat apps, games, and the ability to search for anything at any time—whether related to the task at hand or not.

Recent research shows that, on average, office workers switch between tasks roughly every three minutes. Half of those "task switches" were not because the phone rang or someone stopped by with a question—they were self-interruptions.

The same study showed that when an interruption is related to the primary task, it isn't a problem for the worker to maintain focus when the interruption ends. But when people have to "shift their cognitive resources" to a new task, it takes longer to remember where they were, refocus, and regain momentum.

If your team isn't working across the same devices, platforms, and apps, imagine the increased inefficiency as workers spend more time dealing with incompatibility issues. For anyone moving between several decentralized apps during the workday, the cost is mental exhaustion—which can lead to an increased lack of focus and even less productivity.

Tools and tips for increasing efficiency

No matter how much we'd like to improve our productivity, multitasking is a myth; most humans can only perform one task well at a time. It seems there are never enough hours in the day to complete every job on your list.

Often you're faced with prioritizing what you need to do right now – deal with a customer, meet a deadline, attend an event – and the things you know you should do for the ongoing growth of your construction business.

Scheduling time to attend to these business activities regularly is a great way to get on track for tremendous success.

1. If you must use a computer at work

To help minimize the temptation to check Facebook or random search, focus on your to-do list and block all digital distractions, like placing your smartphone next to you, so you can focus on just what's in front of you.

Another tip is to batch email rather than reading and responding to messages continually. Sending emails twice a day—once in the morning and again in the afternoon—will train people not to expect to hear from you instantly, creating more reasonable (and sane) expectations. No one can or should be available to work around the clock for our own personal and collective well-being.

2. Know your numbers

It's not uncommon for business owners to lose touch with how well their business is performing daily. But an awareness of your real-time income and expenses is the key to making better decisions that will nurture growth.

Implement these changes and see the difference they make in your business:

Switch to an online accounting solution offering access to real-time data anywhere. Monitor your finances daily, weekly, monthly, and quarterly; review the data with your accountant often. Check-in on your other numbers – your website metrics and software analytics – to know whether your marketing, lead generation and sales tactics are working.

3. Update your business plan

Construction companies should update their business plan at least once a year—sooner if an upcoming change requires planning, financing, or re-assigning resources (for instance, a service launch or a new side business).

Many trade business owners neglect to revise their plans regularly. They end up operating on autopilot, losing sight of their bigger goals and the steps they planned to take their business to the next level.

Set goals, mark milestones, and start implementing your plans. Look at your previous year's books to plan with your latest annual figures in mind.

4. Hire help

It sounds simple, but many entrepreneurs' self-sufficient, independent nature can make it difficult to get comfortable delegating responsibility. Finding the right people to relieve the burden of doing everything all the time is the only way a business can scale and reach its potential.

Think carefully about how you spend your days. Are you still at the point where you want to – or need to – do it all? The ultimate success of any company is to reach the point where it can run without you, so you can enjoy a holiday, pass the business on to a family member, or sell it.

Finding the right people you can trust to perform their jobs well and continue to grow your business can take time. A recruitment agency can help you craft an attractive job description and recruit so you can focus on strategies that can bring you greater enjoyment and success.

5. Unplug

Perhaps most importantly, unplug and rest your mind each day. A week or two of time off, away from work, email, and other stress-inducing distractions, will do more to increase your productivity than any app. And be good to yourself by taking a health break each year.

Bottomline

Remember, you can do anything, but not everything. Developing new business habits takes time and commitment – but the payoff is well worth it! Monitor how creating and implementing these practices in your construction business improves company performance. 

About The Author:

Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com