Three Questions About Growth

Every aspect of a construction business must be wrapped around how to win and build projects.

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A construction business can not be managed like a project even though the primary work of a contractor is building projects.  There are three questions that illustrate these differences:

Facilitation Tools: 3 Questions about Consulting.

Q:  Why can’t I schedule the growth of my company like I can schedule a project?

A: Growing a company has far more unknowns and external influences than a project starting with the vision for the project and associated plans.  


Q:  Why can’t I just create a punch list of everything that is wrong with my business and complete it like I do on a project?

A:  First of all you will NEVER have enough resources to do that; no business does. Secondly it is more critical to identify your true bottlenecks and focus your resources.  Any resources spent on a non-bottleneck won’t increase performance.  


Q:  Why can’t I subcontract this out to experts like I can on a project? 

A:  Building a business is about building capabilities and capacity.  If you don’t invest in the growth of your team ahead of the growth of the business then it will become hollow with a weak foundation.  This will lead to highly variable growth and profitability with excessive stress and risk levels. Leverage outsiders to help you build capabilities and capacity for the long term not as an augmentation to your workforce like you do on a project. 


Discuss these questions and answers more thoroughly




Cash Flow Tip 9 - The Project Schedule and Cash Flow
The smoother the project schedule is the smoother your cash flow will be. Large variations in the resource loading across a project’s duration impact cash and productivity.
Cash Flow Myth 2 - Finance Manages Cash Flow
Finance people manage cash flow. The reality is that by the time the finance team gets involved in a cash flow problem there are very few levers they can pull.
Cash Flow and the 5Cs of Credit - Capacity
The 3rd of the 5Cs of Credit is how much capacity your business has to profitably build the projects, ensuring payback of the loan or minimal risk in the case of insurance or bonding.