The construction industry is in the middle of a time of rapid growth. A hot market is the perfect environment for construction companies of all sizes to take a step back, get a sense of the big picture and strategize ways to grow by branching out into new types of projects.
The New Year has arrived. Goals have been set. Resolutions have been made. 2017 is sure to be full of many wins in life and business. But, the truth is, most contractors will not reach their goals. Most will come out of the gate with fire in their eyes, ready to conquer the world, but will lose steam at some point and settle back into old habits—and the same old results.
Eight Tips to Avoid Business Stagnation in 2017 Construction Contractors Must Be Strategic for Continued Growth
A U.S. Bureau of Labor Statistics report revealed nearly half of all small businesses fail in the first four years of their existence. While there are many proven causes, including owner incompetence, inexperience, fraud and neglect, one killer culprit often flies under the radar: stagnation.
Six Ways to Determine If a New Strategic Business Plan Is Necessary Construction Contractors May Benefit From Altering Their Strategy Instead
For many companies in the construction industry, strategy updates happen like clockwork on a set schedule. In fact, 64 percent of architecture, engineering and construction (AEC) firms that have more than 250 people engage in some form of formalized strategic planning an average of every 3.5 years, according to data compiled from ParCons’ State of Strategy in the AEC Industry study. While such a disciplined approach to strategy may sound admirable, it may actually create an adverse effect on a business.
Entrepreneurship is rarely easy, but adding family in the mix can lead to multiple layers of complexity—factors with which competitors may not be burdened. That said, the unique dynamics of a family-run business also can result in extraordinary success, which is evidenced by highly successful family firms such as Wal-Mart, BMW, Ford and Tyson.
All too often, construction companies lose out on good candidates for preventable reasons. For example, one company lost three consecutive candidates after going through the entire interviewing and vetting process. The company made offers in each case, but discovered the candidates had already accepted other jobs.
In recent years, the Department of Labor (DOL) has taken the position that due to a “particularly competitive” environment, pay practice violations are rampant throughout the construction industry. Previously, the DOL mostly cited issues related to “off-the-clock” work, travel time and poor recordkeeping.
Later this year, business owners will need to work through the twists and turns accompanying the Department of Labor’s (DOL) changes to the federal overtime regulations. The new rule will take effect Dec. 1 and applies to exempt employees. It also more than doubles the salary basis required to classify an employee as exempt.
For business development professionals, going the extra mile in sales without a clear definition of where they are headed only leads to working hard, but not meeting goals. To reach sales goals, business development professionals must know where they are going, and then follow a path that will take them where they want to go. That’s where strategic planning comes in. In the same way a roadmap helps plot out a journey, a strategic plan charts the course of how an organization will reach its sales goals.
Welcome to Era I, the Age of the Individual, where people increasingly expect, and even demand, to have it their way—whether transacting, communicating, working or simply enjoying leisure time.
The Distinction Matters Contractors Must Properly Classify Workers as Employees or Independent Contractors
Independent contractors and employees are not the same. Classifying a worker as an independent contractor, rather than an employee, may appear at first glance to result in financial savings and reduced liability. But the consequences of using one classification versus the other may mean the difference between tax obligations, compliance with regulations governing wages and discriminatory actions, obtaining workers’ compensation insurance and providing employee benefits.
A few insider tips used by workers’ compensation cost control consultants can help employers cut the cost of their insurance. Following are proven methods to reduce the cost of this vital insurance to the absolute minimum.