Construction Today - January/February 2013 - (Page 12)
STRATEGIES TO GROW
Owners need to focus on diversifying their client base and revenue streams. BY DANIEL SCHNEIDER
lowly, the construction industry is emerging from this stagnant
economy. According to a recent Commerce Department report,
home construction rose 15 percent in September 2012.
Additionally, apartment buildings increased 25.1 percent and
applications for building permits rose almost 12 percent. While this is
encouraging news, it is too early to determine if the economy is in a
true recovery or experiencing a short-term peak headed for a doubledip recession.
To ensure successful revenue growth through either scenario, it is
essential for business owners to stay focused on diversifying their customer base and revenue streams. Successful implementation of a diversification strategy minimizes the company’s revenue fluctuation and
CONSTRUCTION-TODAY.COM JANUARY/FEBRUARY 2013
stabilizes cash flow. The key component of a
successful implementation is the ability of the
business owner to work “on” the business, not
“in” the business.
The distinction between the two is very
clear: owners working “in” the business are
consumed by handling the day-to-day activities of sales, operations and finance. There is
little time left in the day to proactively focus
on directing and managing the company.
Owners working “on” the business, spend
approximately 80 to 90 percent of their day
Table of Contents for the Digital Edition of Construction Today - January/February 2013