When the Work is There, Take It!
You only get a few chances to capture market share and maximize profitability. Therefore, when opportunity presents itself, you must take action.
It won’t wait. And if you don’t take it - rest assured - your competitors will.
The mass amount of construction work going on throughout the United States is staggering. In Ohio and West Virginia (where my companies operate) opportunities are everywhere.
I’ve also traveled frequently the past few months - visiting Nashville, Charleston, Savannah, San Diego, Orlando, Key West, Dallas, San Antonio, Myrtle Beach, and Charlotte, among other cities along the way. I’ve seen firsthand that the building business is booming… everywhere I turn. In downtown Denver alone, I saw 17 cranes in the air.
For those in the construction business, now is the time to make your money. Don’t wait. Get it now. Or else…
I’m writing this contractor tip on a large fishing boat in the Pacific Ocean, where I’m fishing with 13 peers from my professional networking group. Our group - made up of owners and top managers from construction companies all throughout the USA - meets semi-annually for at least three days to discuss best management and business practices. This time around, we decided to shorten the formal meetings and take a 2 ½ day fishing trip out of San Diego, CA. And what’s really cool is that I’m writing this tip AND fishing at the same time.
You see, I’m able to maximize my opportunity (and time), because our guides have put trolling poles over the back of the boat and we troll until we come upon a school of fish. We may troll for HOURS before we encounter a tuna, Dorati or other type of fish we’re after.
When it happens, the captain stops the boat and over the loudspeaker comes his booming voice, “Fish in the area. Bait your hooks and drop your lines in the water immediately.”
There is no time for inactivity. We scurry like mice to cheese trying to get our gear rigged up and thrown overboard.
Once we are on a school of fish, we’re likely to catch many large ones before the rush ends.
But as soon as the fish are gone, we could sit there with bait in the water for days and catch only a small amount of fish - if any at all. Therefore, when the captain informs us to reel in our lines, we trust him. It’s time to travel to find more fish.
Earlier on our trip, I was at the back of the boat talking to a contractor who was telling me there is a ton of work in his area right now… he just needs to figure out how to take advantage of it.
”Raise prices and bid as much as you can. It’s time to fish! When we are on a school of fish, they bite almost anything we through in the water. Our industry is like our fishing trip. When construction slows, it’s over until the next big run of work comes along.” I said. This thought gave me the idea for this month’s tip, so of course I mentioned that I was going to the cabin to write a contractor tip!
Here’s the thing - when construction is booming, you need to hire and expand as fast as you can, but you can’t overlook your margins. You need to increase them!