Definition of Sustainability

How sustainable is your construction business?

D. Brown Management Profile Picture
Share
Leadership Tools: Definition of Sustainability: The ability to be maintained at a certain rate or level.

Not your ability to build sustainable buildings, but the true sustainability of your business.

  • Are the market(s) that you are in stable or at least counter-cyclical to each other throughout various economic cycles?

  • Are those market(s) growing, stacking the cards in your favor that your company will continue growing?

  • Do your customers love you to the point where they keep coming back to you for projects?

  • Do you have good business development capabilities that will create predictable revenue growth?

  • Do you have good talent development systems, ensuring that your revenue growth does not exceed your ability to grow and retain leadership talent?  

  • Are you generating enough free cash flow to support your growth?

Sometimes, an outside perspective can be invaluable for helping assess and improve your sustainability. 

What does your scoreboard say?  




Recap of the 4 Myths, 18 Tips, 5Cs, and 4 Metrics of Cash Flow
Cash flow is critical for the sustainable growth of a construction contractor and one of their key scoreboard metrics. Here's a recap of the 4 Myths, 18 Tips, 5Cs of Credit, and the 4 Metrics & Trends of Cash Flow.
Climbing the Mountain - Continuous Improvement
Growing a contracting business is like climbing a mountain. Just plan the next 10 feet; set an anchor and get the whole team up to that level. Repeat a few hundred times. Gotta love being on the mountain; not just being at the summit.
Incentive Compensation for Contractors - Audience Question: Higher Base Compensation?
There is absolutely no perfect ratio between base vs. incentive compensation. Here are the variables and some rules of thumb.