Construction Today - January 2010 - (Page 10)

PROFITABLE CONTRACTOR Commercial Owners can make six critical mistakes in managing their business. Are you making any of them? BY DAN SCHNEIDER SIX SINS S urviving in today’s business world is more difficult than we have witnessed ever before in our lifetimes. Small and mid-sized businesses are failing at a rate that has not occurred in more than 60 years. An analysis of the reasons for this high rate of failure quickly points to fundamental errors made by business owners. They are: 1. A passive sales process. Business owners rely on their existing relationships — usually one or two customers — to provide them with enough business to pay their bills, make payroll and perhaps realize a small profit. Then, when the economy goes south and these few customers cut back on their spending, the passively acquired sales dry up and the company’s revenues diminish proportionally. For companies to truly survive the brutal economic swings, they need a proactive sales process — a sales force that goes knocking on doors, aggressively soliciting business. 2. Lack of organizational structure. Even companies that use a proactive sales process and are seeing some growth in these difficult times can still fail if they lack a functional organizational structure. From startup through approximately $1 million in annual revenues, companies usually take on a structure that resembles a pinwheel. The owner is the hub, surrounded by the employees on the outside of the wheel. They all contribute to turning the wheel, but every time one wants to make a move, he or she has to check in with the center of the wheel, the owner, to get a decision made. That may work while the company is small, but as the business grows above $800,000 to $1 million in annual revenues and adds more employees, it overburdens the owner. He or she becomes consumed with keeping track of every detail and making sure all the employees are doing their jobs. No time remains to act as chief executive of a growing company. A simple measure a business owner can use CONSTRUCTION-TODAY.COM JANUARY 2010 http://www.CONSTRUCTION-TODAY.COM

Table of Contents for the Digital Edition of Construction Today - January 2010

Construction Today - January 2010
Profitable Contractor
Aireko Enterprises
Metrus Construction Limited: Le Parc Tower II
CJ Pink Ltd.
Costello Dismantling Co. Inc.
Allied Building Products Corp.
IDEURBAN: The St. Regis Mexico City
Interlink Group
TCD Inc.
Jersen Construction Group
Killian Construction Co.: The Westin Hotel
Legacy Partners Residential: Riverpark
Strathcona Mechanical Ltd.
Tilton Pacific Construction Inc.
On the Cover
Wharton-Smith Inc.
Product Showcase: Software and New Technology
Nicholson Construction Co.
Gilchrist Construction Co.
Turner Construction Co.: MIC Rental Car Center
Union Concrete Construction: Outer Harbor Parkway Project
D’Onofrio General Contractors Corp.
Worldwide Rental Services
AmQuip Crane Corp.
EIC Associates Inc.
Grinnell Recycling
Intercounty Paving Associates LLC: N.Y. Route 112
Matrix Design Group
Nicholson Construction Co.: Canton Dam
Sessler Wrecking
Wilson & Company Inc. Engineers and Architects: Rail Division
Regional Spotlight
Group Lepine Ltd.
Laurysen Kitchens Ltd.
Aspen Ridge Homes: Vu Living
Walsh Construction: Sherman Replacement Hospital
Block Cos.
PortSide Builders Inc.
Summit Builders Construction Co.: Classic Residence at Silverstone
Urban Landmarks
Keystone Construction Corp.: Carmel Arts District Lofts
Construction Coach
HDR Architecture Inc.
Brasfield & Gorrie LLC
Dimeo Construction Co.
Nan Inc.
EllisDon: North Park Quad Pad Arena
CANA Construction: TELUS World of Science
Cornerstone General Contractors Inc.
Harvey-Cleary Builders: City of Austin Public Safety Training Facility
Hensel Phelps Construction Co.: Granada Hills High School
Pirtle Construction Co.: City of Miami College
Sundt: East Contra Costa
Taylor & Parrish Inc.: Carole Weinstein International Center
Turner Construction Co.: Nationwide Children's Hospital
Turner Construction Co.: Duval Unified County Courthouse Facility
Weddle Brothers Construction Co. Inc.
AP Construction Inc.: Kensington Creative and Performing Arts High School
The Boldt Co.: Luther Midelfort Hospital Expansion
Choate Construction: NGCSU Projects
Donley’s LLC: Bavaro Hall at the University of Virginia
EllisDon: Woodstock General Hospital
McCarty Corp.: Maneuver Center of Excellence Headquarters
Munlake Contractors Inc.
Murray Company: Kiowa Country Memorial Hospital
River City Construction LLC
Skyline Roofing Ltd.
SpawGlass: Austin Community College Round Rock Campus
W.E. O’Neil Construction: Downtown Women's Center Project
Special Focus
CANA Construction: SMART Technologies
DiFazio Industries
Ecco III Enterprises Inc.
G.W. Peoples Contracting Co.
ARCO/Murray National Construction Co. Inc.
Baker Electric Inc.
Chester Bross Construction Co.
Titan Wrecking & Environmental LLC
Last Look: Urban Landmarks

Construction Today - January 2010