At the end of last year did you sit down to think about what you want to accomplish in 2017? Was increasing your company’s profitability on that list?
We all want to be more profitable in our businesses, but there are several other ways to achieve it besides simply earning more. We ran across an article on ForConstructionPros.com, titled “5 Steps to help your construction business be more profitable in 2017” that outlined some great advice on the subject. Here’s a brief overview the article’s key takeaways.
1) Understand the cost of doing business: Between equipment payments, payroll, fuel, insurance, etc. — do you know how much you have to earn each month to break-even? Understanding where your money is going is the first step to getting a better handle on what you need to earn.
2) Evaluated your equipment acquisition strategy: What machines do you own and which machines are you renting. It’s important to crunch the numbers to determine if what you’re paying to purchase or rent equipment so you can make better equipment related decisions.
3) Get educated on the latest technology: Manufacturers are building a lot of technology into today’s machines. That technology may or may not make your team more productive. However, until you know what’s available and how to use the technology, it’s pretty hard to decide what you need and what you don’t.
4) Calculate the risks before you bid: Stick to the work you know how to do and have the right resource to get the job done. Every company wants to expand the services they offer, but the good ones grow slowly because they stick to what they know.
5) Promote training and education: Invest in your crew. Jobsite mistakes will cost you big time. Make sure your crew knows how to do the job in front of them.
TracksAndTires Bonus Tip: Make sure your equipment is running the right tracks and tires. You don’t have to operate the newest equipment to increase your crew’s output. Ensuring your tracks and tires have plenty of tread, and you’re using the right tread patterns for the job will keep everyone productive.
