To survive and prosper in today’s marketplace, it is imperative that you, as the owner or top management, spend time evaluating your company and the marketplace. Below are some high- level questions you might want to ponder.
1. Do you have clearly defined goals for your company and a vision you can articulate to your employees and the marketplace? Do you have a Marketing / Business Development plan and a great website and communication program?
2. If your revenues have decreased, have you prepared a budget and a plan to address possible financial shortfalls? Are you capable of implementing the plan?
3. Have you reviewed and adjusted your general conditions and fixed operating costs to align with your current revenue stream and work program?
4. Have you reviewed your employee roster and made any necessary adjustments to align manpower and employee expenses with your current revenue stream and work program? Do you know your true Labor Burden?
5. Have you reviewed your entire organization and workflow process to assure it is streamlined and aligns with your goals, visions and work program?
6. Do you have sound accounting principles in place and do you review your WIP schedule weekly? Last month we explored the importance of the Work In Progress Schedule. You can review that article by clicking here >> Stewardship – A New Way To View The WIP Report or visiting www.constructionconnection.com/blog for this and similar articles and tools.
7. Do you have written policy, procedures and safety manuals? Does each employee have a copy? Do you provide training and orientations for new employees?
8. Do you thoroughly understand how the “Affordable Health Care Plan” (obamacare) will affect your company, your legal obligations, taxes and the bottom line?
9. Do you have written employment agreements for key employees and buy/sell agreements in place for all shareholders?
10. Do you have a method to measure success of processes, goals, employees, and job performances?
This list is in no way intended to be a complete inventory of items to evaluate in any company but very basic principles that must be addressed regularly. From time to time, every company should engage an outside set of construction industry eyes and ears for an overall evaluation of a company’s goals, processes and financials. This can be accomplished via a formal or informal board of directors or, more simply, by retaining an industry professional to lead you through an organized evaluation process.
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