Business Growth Cycles

All contractors go through different stages of growth. While these stages are well-studied and predictable they are not black and white nor are they easy to manage through.

D. Brown Management Profile Picture
D. Brown Management
February 3, 2018 1 minute read
Share

Each stage of growth requires rigorous evaluation and adjustments to these four areas:

Business Growth Cycles. All Business Experience It.
  1. Re-Evaluation of Market Focus: Will our current customers and geography provide the stability and returns we are looking for at the next stage of growth throughout the inevitable economic cycles?
  2. Organizational Structure: Stages of growth are all associated with the need to insert another layer of management.
  3. Operational Processes: With the growth and changes in organizational structures the workflows, tools used and processes will need to be refined or changed all together.
  4. Leadership Focus: Most importantly the leadership focus and supporting systems including communications and compensation has to change to support each stage of growth.

With proactive leadership you can grow at a sustainable rate minimizing the variability on profit growth and stress levels on the team. Perspective is difficult for everyone when they are in the middle of a growth stage and especially if you have never been through this stage of growth before. 

Learn more

Lean Principle - 5S and Setting up a Productivity Work Environment
5S is a foundational tool and habit for continuous improvement. The 5S process is to daily execution what eating a healthy breakfast and exercising is to your health. Do it consistently every day and it will change your life.
Related Article
Project Income Projections
For a contractor to be effectively involved in the early stages of a project beyond understanding the whole project development budget, they must also understand the financing and cash flow of the project.
Related Article
Selling an Efficient Project
Doubling the pretax net margin for contractors requires both effective selling AND operational excellence. The majority of of people in construction contracting businesses are operationally focused on building the work.
Related Article