Saving Your Construction Business: A 10 Step Plan for Recovery

Operating a commercial building firm isn't easy these days. Layoffs are still prevalent, contracts are getting canceled from lack of funding, and investments in new or rehabilitative construction are at an all time low. As my general contractor dad might tell you, it's times like these that separate the "men from the boys." That is, those construction outfits who have prepared themselves to weather long lasting recessions from those who haven't.

But what if you haven't prepared your firm for such a stubborn recession? What can you do now to save the sinking ship? According to one "hard hat" construction expert, George Hedley, CSP, there are 10 steps an owner and/or business manager can take right now to avoid disaster.

1. Set realistic goals for growth and profit.
2. Cut operating costs.
3. Save your cash.
4. Get rid of poor performers.
5. Visit your top customers.
6. Look for new customers and check out new emerging markets.
7. Seize profitable opportunities.
8. Increase your marketing efforts.
9. Up your tech spending.
10. Seek out failing companies you might want to buy out.

While some of these improvements might seem oversimplified, such as setting goals, I can tell you from experience that one of the things that has allowed my 74 year old dad to weather several major recessions is setting personal monthly goals, both in terms of job performance and cash savings. And that means scrutinizing everything that comes across his desk, from billings to project schedules; from payroll to gas receipts.

How are you managing to keep your head above water during this stubborn recession? Are you setting realistic goals? Do you see new markets and opportunities emerging despite the recession or even as a result of it, such as green design?

The preceding article is a "sneak peek" from Building & Design, a newsletter from GlobalSpec. To stay up-to-date and informed on industry trends, products, and technologies, subscribe to Building & Design today.