For companies operating in the construction industry, taking time to create business goals can make a huge difference.
Don’t know where to start? Don’t worry. We’ve compiled a list of the top five goals every construction company should set.
#1: Set Safety Standards for Each Project
What goals has your company set in place regarding safety? How are you making sure your company’s safety programs are being followed at each jobsite?
Before beginning any project, you should create a plan that identifies potential risks and how to prevent them. Communicating that plan regularly with your team members will ensure safety is on the forefront of their minds.
Creating safety plans and facilitating employee communication concerning safety will provide your construction company with the basis it needs to conduct work effectively, and therefore, have a strong foundation for growth.
#2: Evaluate Your Company’s Communication and Teamwork
It takes everyone in a company to meet goals—not just leadership. It’s important that all levels of your team communicate and work together, so construction companies should constantly be evaluating themselves in this area.
In addition to the usual preconstruction and project handoff meetings, teams should also have a thorough meeting after project completion to discuss what went well and what can improve.
Additionally, field staff and project managers should understand the importance of timely and accurate communication with the accounting department. Everyone should understand the extent to which financial statements are affected by having accurate information from the field.
Communication will ensure that projects are handled efficiently so your company can grow profitably.
#3: Create and Follow a Strategic Plan
Business owners can get bogged down in the day-to-day issues of running a company and fail to think strategically about the future. If you or your team aren’t aware of the strategic direction of your company, people may have competing goals and priorities which aren’t cohesive or effective.
The first step in a strategic plan is to identify your vision. Once you identify your vision, you can create a roadmap for how to get there.
Often, owners don’t know where to begin because they don’t have a clear picture of where their company is today. Having good metrics and a way to easily access data is essential to setting goals and staying on track.
Do you know your true overhead cost and indirect job cost? At the end of the week, do you know whether or not you were profitable? An advisor can help you walk through setting your goals and hold you accountable throughout the year.
#4: Make and Communicate a Succession Plan
If your construction company doesn’t have a written, documented succession plan, make this the year to prepare one.
It’s not enough to have an ownership transition plan. A contingency plan is also vitally important.
Unfortunately, this isn’t on the list of must-dos for a company until a tragedy occurs or someone quits unexpectedly. It’s then that a company realizes that one person had responsibilities that no one else knows how to handle.
Plans should be written and communicated with appropriate people throughout your company, and employees should be cross-trained.
#5: Consider Your Cybersecurity
It’s important to ensure your construction company not only has what it needs to operate effectively, but also that your data is protected.
Think you’re too small to be attacked? Think again. No matter the size of your company, all contractors are at risk of a cyber-attack.
The best way to protect yourself is to be proactive. Things like risk assessments, vulnerability scans and internal controls, among many other things, can ensure you’re taking proactive steps to protect your data.
Achieving These Goals
If you’re looking at this list and don’t know where to begin, consider partnering with an advisor who can help your company start on the right foot for not only setting goals, but achieving them.
Having an advisor who understands your industry can not only help you meet your goals, but it can also offer a unique perspective. Throughout the year, an advisor can help you stay on track with your goals.
To learn more about what these goals may look like for your specific construction company, contact your Warren Averett advisor or ask a member of our team to reach out to you.
This blog was originally published on February 26, 2020 and was most recently updated on October 6, 2020.