Tools to Improve Your Construction Business Stability and Longevity

If you are the owner of a construction business, you see first-hand how the industry is booming. Many cities across the country are experiencing tremendous growth, and we need builders, architects, and visionaries to help create the structures that will house our families and the companies that help our economy thrive. 

Building a stable business takes constant work, continuous planning and an undeterred dedication to the team members that make it all possible. To that end, let’s look at some best practices that have helped construction businesses build long-lasting success. 

Prepare for the Unexpected 

To ensure the longevity of your business, consider putting a well-crafted recovery plan in place that you can implement immediately if any unforeseen problems were to occur. Proactively creating a continuity plan will help you respond effectively if an incident or crisis affects your business. 

Essentially, this includes detailed contingency plans for every type of unexpected incident you can imagine, from natural disasters to cyber-attacks. Your continuity plan should answer the question: How are you going to keep your business going if any of these issues were to occur? 

Gather a team and figure out the immediate actions that you would take to keep your business afloat in the various scenarios you’ve outlined. Which employees will handle specific tasks, and what systems will you need to implement now to be ready for an uncertain future? This is also a great time to start cross training your employees so more than one person can handle essential duties if additional support is needed. 

Along with a plan to handle daily operations amid crises, a careful analysis of how such events will impact your finances is key. Beyond revenue and expenses, knowing your cashflow needs over various periods of time will help you prepare for events that may limit your ability to generate revenue for undetermined timeframes. A cash flow calculator can help in this planning process. 

An Employee Retention Strategy 

Creating a positive work environment where you provide the tools that your employees need to be effective and productive can also impact business longevity. Employee retention starts on day one with a well-orchestrated onboarding process that informs new employees of the full extent of their position and offers resources to assist with any questions they may have.  

After the onboarding process, it is important to follow up with new employees periodically to ensure they have everything they need and to answer any questions they have. A person is more inclined to stick around if they know that the company has a vested interest in their development. Deliberate planning of follow-up is especially important with remote workers as interactions don’t happen naturally on a daily basis. You can create a digital watercooler of sorts by hosting video meetings over Zoom or a similar platform, so everyone retains that valuable face-to-face connection. 

Continuous training is key for retention because it will not only help employees learn the advanced skills needed for their role, but it will also improve your bottom line. Recent studies show that the costs associated with recruiting and onboarding a new employee can be upwards of $4000 per person. Using training to avoid turnover is well worth it, especially if you have a talented employee that simply needs more training to fulfill your specific needs. 

A Culture of Safety 

Developing a culture of safety that extends to every member of your organization is a great way to bolster organizational stability and longevity. While safety is important in any profession, the scenarios often seen in construction can be particularly dangerous if anyone on your team is not prepared. Regular meetings for discussing and implementing safety guidelines can create safer environments, but they can also make employees feel safer in their positions. An open-door policy that encourages coming forward with safety concerns is another way to increase employee confidence in your company. 

Extra caution is required on the job site, of course. Some of the most common practices are simple and effective, like ensuring that all unused equipment is picked up and stored away in its proper place, placing signage around work areas, and labelling all chemicals.  As usage of mobile phones and other personal devices has become ubiquitous and nearly continual, many companies have worked to limit distractions by implementing policies outlining when and where devices may be used. 

In addition to ensuring the safety of your workforce, protecting your customer and client relationships is also essential. Build trust with these stakeholders by promptly addressing questions, providing solutions, and keeping them updated on safety procedures and a project’s progress through text updates, emails or social media posts. It is common practice for field leaders to inspect the project site daily to verify that harmful items are not lying around. More recently, companies have found that using drones to provide an aerial view can help ensure that even the smallest hazard doesn’t go undetected. 

As an entrepreneur, you want to see your business thrive for years to come. Developing contingency plans, implementing employee retention strategies, and creating a culture of workplace safety are proven and practical ways to fortify, strengthen and prepare your business for long-term success.  

Interested in receiving more great construction news, research and content from NCCER? Click here to join our mailing list!