Juggling balls and putting out fires: why it's opportunity in disguise
Reacting to problems cost contractors, construction businesses, and customers far more than most people realize.
Depending on who you ask, 5 to 10% and even more revenue is gets sucked right out of the typical contractors jeans (ie. your bank account). While the percentage may be up to debate, the underlying causes are not:
- poor documentation
- materials disappearing
- lost productivity
- managing the "domino" effect of problems
The other side of the problem-reaction coin
For those that are willing to see it, the flip side offers a genuine opportunity. Even small improvements can have a big impact on the bottom line.
If a contracting business increases its efficiency by only 5% and it has a 10% net margin, then profits can soar by 50% - not to mention less wear and tear on the team that makes it all happen.
Cut mistakes in half and you could potentially double your profit.
Simple changes can add up to a significant increase in profits - but the real impact of improvements and putting systems in place go through the roof when you add them up over time.
Of course it's not just about money. There are other significant benefits to a smoother running business; it's more fun, less stress, and when the time comes, the business is much easier to sell (and a much better business to buy).
Learn about the human cost of killer problems (and why it's an opportunity in disguise)...