Let's talk about something crucial for your custom home or remodeling business: managing by the numbers and focusing on profitability through a solid business strategy for contractors. You know how it goes - we often find ourselves taking on any job that comes our way just to stay "busy." But here's the thing: being busy doesn't always mean being profitable. It's time to shift our focus from simply “staying busy” to actually making money and improving our quality of life.
Think about it - when you plan a vacation, you don't just wing it, right? You figure out where you're going, how you'll get there, and what you'll do. Your business deserves the same level of planning. Without a clear strategy, you might find yourself working hard but not seeing the profits you deserve.
So, what does a good business strategy look like for general contractors?
Start by asking yourself:
“Where am I? Where do I want to go? How will I get there?”
Multiple pieces need to fit together for your business to truly thrive. These include understanding how you stand out from your competition, how to drive Gross Profit, who your ideal clients are, how to market to them effectively, building accurate estimates, and producing efficiently.
Let's take a minute to talk about the rollercoaster ride our industry has been on. Remember the 2008 crash? Custom home builds took a nosedive, and many of us were just scrambling to stay afloat. We took any job we could get our hands on. Then came the boom in 2021, and guess what? A lot of us did the same thing - taking on every project that came our way. But here's the kicker: whether it's a downturn or a boom, just being busy isn't the goal. The real aim is to achieve true profit, and that requires a solid business strategy.
Now, we're facing another shift. The wave of jobs fueled by low interest rates is slowing down. So, here's the million-dollar question: How are you planning to pivot? This is where having a flexible, numbers-based strategy becomes crucial. It's not about riding out the ups and downs; it's about steering your business through them. The Aspire Institute for Contractors can help you develop this kind of adaptive strategy. Aspire will help improve profitability in construction and teach you how to adjust your sails as the market changes.
Now, you might be thinking, "This sounds great, but where do I start?"
That's where The Aspire Institute for Contractors comes in. We are experts at helping contractors assess their businesses and work with you to create construction business strategies to improve your construction business profitability.
Don't wait for the next market shift to catch you off guard. Contact The Aspire Institute for Contractors today and inquire about our contractor business coaching. Let us help you assess your custom home or remodeling construction business and create a strategy that'll help you reach your goals faster. Remember, it's not just about staying “busy”—it's about building a profitable, sustainable business that works for you.
Take that first step towards a more profitable future. Contact The Aspire Institute for Contractors and start managing your business by the numbers to have a profitable remodeling or construction business. Trust me, your future self will thank you!
For more information on business strategy, read our Business Strategy for Contractors White Paper.
Graph Source: Robert Diez, Declines for Custom Home Building, February 2024
https://eyeonhousing.org/2024/02/declines-for-custom-home-building-3/