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. 




What Must Be True...
Asking the right strategic questions will ensure profitable growth in all economic conditions. Daily operational management is about adapting to what is currently true. Effective executive leadership creatively bridges the gap between the two.
Understand Buying Motivations
Getting involved early in the project as it is being developed is one of the best things a contractor can do for profitable growth. That value starts with understanding the entire budget for developing a project.
Higher Scores Aren’t Always Better: Percent Planned Complete (PPC) Example
Construction is full of competitive personalities - more is always better. This is not always the case, and you must be careful when setting targets that your goals don't have unintended consequences. Percent Planned Complete (PPC) is a perfect example.