From Financial Management to Business Management

As contractors go through different stages of growth it often makes sense to expand the financial management role into more comprehensive business management role.

D. Brown Management Profile Picture
Share
Leadership Tools: Financial Management to Business Management.

At exactly what stage a contractor starts to expand this role depends on:

  1. Volume or work
  2. Complexity of work
  3. Complexity of the regulatory environment the contractor operates in
  4. Best Return on Time for other operating executives who are currently doing these functions

Of all these the best Return on Time for other executives is often the most overlooked.  Consider how much time some of these functions take other people in the organization.

Could their time be better spent:

  • Connecting with customers to help develop business?
  • Improving project execution?
  • Spending more time developing talent to build capacity for the future?

A fifth major factor includes succession - sometimes the owner/operator of the company is doing so many of these functions or managing so many direct reports that a clean succession is nearly impossible.  


Schedule a call with us to see if this makes sense for your organization




Valuing a Construction Business
There is no single right way to value a construction business, although there are many methods that have validity. Keep in mind that the definition of “Fair Market Value” is quite simply what a willing seller and buyer agree to.
Capital Use Policies
Capital is to contractors what blood is to our bodies. We can survive days without water and weeks without food but seconds after losing blood flow we lose consciousness. Capital enables the execution of effective talent and market strategies.
Talent Shortage and Investing in Talent Development
Construction reached “Peak Talent” levels in 2015 and the problem will get 3X worse by 2020 continuing to worsen through 2030.