A business plan paves the road to success
There are many more ways to lose money than to make it in the construction industry and controlling risk is one
of the key ways you can minimize loss. Unfortunately, most construction managers just don't know how to control risk.
The answer is simple - establish a well thought-out business plan that makes financial sense in your marketplace and stick to it.
Whether you're starting a new business or a new division, planning on handling new types of work, penetrating new markets,
or expanding within your present market, a solid plan of attack is not only good to have, but essential to your success.
"Everybody's got plans...until they get hit."
- Mike Tyson, Heavyweight Champ
The construction industry has one of the highest failure rates in our economy today. One reason for this failure is that
management often cannot adapt to change. Successful managers know that change is inevitable and that a business plan is a
great tool to help them prepare for and deal with it, but many construction managers don't actually know what a business
plan is for. If they are well-seasoned professionals, lenders or guarantors might not even request a business plan from
them and contractors that are not required to produce a business plan tend to disregard the idea altogether, failing to
recognize the inherent value. You may even be one of them. Perhaps you have been asked to produce a business plan but see
it merely as a way to satisfy your bank or bonding company, in either case, you are making a serious mistake.
No company should fail to realize that people function better with defined goals than without, especially in business. Not
realizing that they can benefit from it, many mature, well-established and profitable contractors believe that they have no
need for a business plan. At the very least, a business plan acts as an eye-opener and identifies areas within your company
that require attention or change. The simple exercise of creating one is often enough to spark long-term thinking, which can
significantly impact present-day decisions and, in turn, determine the future direction of your company.
There are two elements to a business plan: the written part that covers future goals and objectives and the financial model that
predicts corresponding income and expenses. A business plan not only defines your goals, but also, most importantly, acts as a
financial road map that directs your company to long-term profitability. Staying on course with your goals will get you where you
want to go in the shortest time possible, while the financial framework allows you to monitor your progress along the way.
Never underestimate the many uses of a business plan - they make real financial sense - i.e., they'll help earn you money! When you
partner with Druml Group to create your business plan, we'll create a financial model that includes a detailed variables analysis
including projected property acquisitions, fixed asset purchases, accompanying debt and the potential overhead required to perform
to your planned volume. We'll work closely with you to determine a margin that is representative of your marketplace and help you
shape your future - making sure that you earn money as planned!
Druml Group has developed successful business plans for many construction companies and we'd be glad to help you too. Call us today.
We'll help you master the art of planning to earn money!
"First comes thought; then organization of that thought into ideas and plans; then transformation of those plans into reality."
- Napoleon Hill
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