Two Critical Things Every Business Must Do

The business of construction is both challenging and exciting, with days full of risks and rewards.

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Jack Stack calls it “The Great Game of Business.” In this book and his follow-up book called “A Stake in the Outcome,” he describes how to create a culture of ownership.  

Quote: People who run companies know that there are really only two critical factors in business. One is to make money and the other is to generate cash. Jack Stack. Book: The Great Game of Business by Jack Stack.

At the very foundational level, a business must make a profit and generate cash. While there is a lot more that a business could and should do, it is only with the foundation of strong cash flow growth that allows these other things to happen.  

Like Maslow’s Hierarchy of Needs, we can’t focus on self-actualization if we don’t have our primary needs of security, shelter, and food met.  

As a society grows, it is easy for people to lose connection with the basics required at the bottom of the pyramid. It can worsen as people take them for granted or become dismissive of them. A building will fall when the foundation is weakened. We can see this happening in today’s society in many ways.  

Here, Simon Sinek talks about current generations wanting to impact the top of the mountain without knowing the whole mountain:

Ensure that this does not happen in your business by connecting profitability and cash flow to actions and outcomes at each level of the organization. This is exceptionally challenging but also exceptionally rewarding if done correctly.  

Do you understand the importance of the Contractor Scoreboard?




Leadership and Management of Details
Building a great contracting business requires the right balance of leadership and management. While it is possible to separate them the truth is that many of the top leaders are relentlessly disciplined managers.
Setting Standards and the Feedback Loop
Set the standard. Train to the standard. Certify to the standard. Plan the work to the standard. Execute to the plan and the standard. Check against the standard. Make prioritized improvements to the standard, training, planning, and execution.
Different Stages of Market Growth and the Types of People Required
Every contractor will experience different stages of growth as a company and within the markets they are competing in. Understanding the different types of people required at each stage will help the contractor navigate them smoother.