Profitability and Predictability

Consistent profitability follows predictability.

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Contractors who are consistently improving their scoreboard, including profitable growth, focus on making the behaviors and actions that LEAD to profitability consistent habits.  

Leadership Tools: Consistent Profitability Follows Predictability.

Having a BIG GOAL is exciting to talk about, but whether in business, sports, or life, merely having that goal isn't enough to get you there.  

You must have a BHAG (Big Hairy Audacious Goal) to set your vision, help you chart your course, and help you get back up after continuous setbacks...but the REAL WORK of achieving that goal comes down to intense focus on doing the small things consistently. Every single time.    

This is why the Last Planner System© (LPS) focuses on consistency of weekly execution with a feedback and learning component.  

Consistent execution of these standards may seem boring, but they are the foundation of continuous improvement. The Plan > Do > Check > Act (PDCA) process can’t work if you don’t have standards in place that are consistently being followed.  

How predictable is your business development? Your estimating? Your project delivery? Your field productivity? Your financial results? Contact us to have a conversation.




Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow
If you effectively manage the startup of the project and the close-out then the execution in-between mostly takes care of itself.
Cash Flow and the 5Cs of Credit - Conditions
The 5th of the 5Cs of Credit are the conditions for the loan, which is primarily what the funds will be used for. These conditions are here to protect the contractor as much as they are there to protect the bank.
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.