Business Development - Two Basic Principles

For a contractor to grow sustainably, there are two important basic principles.

D. Brown Management Profile Picture
Share

Business development is crucial for any contractor to grow sustainably. This starts with choosing the best market strategy for your company at this point in time.

Assuming your operations are at least on-par with your competition: 

Leadership Tools: Business Development - Two Basic Principles

If your profitability is marginal or even at a loss due to too little work, then your market strategy and business development tactics must be aggressive.  

If your village had too little food, you would double-down on your hunting and gathering efforts. You would get up earlier and stay out later. You would explore further out from your village.  

And you would remember to not eat poisonous plants or bad meat even if you are hungry, because that would make the situation worse.  

Gradually, you would gather enough strength from this extra effort and food to invest in longer-range farming activities.  


If your profitability is solid, you can get more selective and strategic about the work you take on.  

It is the same with food. Eat what will sustain you in the long-term and makes you happy.  

Invest more in farming operations and more away from hunting, but don’t lose those skills.  

Don’t overeat. Don’t over hunt, fish, or farm. Don’t simply eat for short-term pleasure. 




Incentive Compensation for Contractors - Mitigating the Talent Shortage
There’s not much better than a great incentive program to recruit, retain, and develop people. The talent shortage is very real and is hitting the construction industry harder than ever.
Lean Principle - Stop Work (Until Problems Are Corrected)
All construction projects will run into some degree of problems. It is how the project team chooses to manage these problems that ultimately determines the outcome of the project.
Sharpening Your Thinking Through Writing
Contractors can learn many lessons from the leadership principles of Hyman G. Rickover who is considered the “Father of the Nuclear Navy” including safety, engineering, talent, management, schedules and quality control.