The construction sector is huge, and it is one of the biggest industries in the world economy. If you are to start your construction company, competing with the already established huge businesses is not easy. That is why it is crucial to clearly define the necessary goals of your business that can help you compete and stand out in the competition.
We will give you some tips if you do not know where to start. This article compiles some of the most common company goals for your construction business and teaches you how to prioritize each. In addition, we prepare a list of KPIs you also need to track to help you achieve success in your business. Now, let’s get started.
1. Form a strong and efficient construction team
There is nothing more crucial than having a skilled and professional construction team. The majority of the success factors depend largely on your employees; therefore, you cannot afford to pick workers who consistently fail in their tasks. If your plumber is not too skilled in repairing fixtures and pipes or if your roofer cannot build a maintainable roof, your customers will hardly be satisfied with the overall results.
When forming a team, hire professionals who are working on the same projects and know how to provide quality results. However, hiring skilled people is only half of the job – the greater success depends on how your company will treat them. Hence, you have to provide training programs where they can improve their skillset and learn new skills.
Focus on the strengths of each of your workers. Finally, equipped them with the latest tools and technologies to help them with their performances and collaboration. Pro Crew Schedule, an all-in-one construction time tracking software, provides a single platform for everyone involved in your business, making connectivity and collaboration faster and more seamless.
2. Develop a strategy
A clear vision and mission statement are something that every business should have. Therefore, the first thing you need to do is to document it – define your company goals in the mission section and then describe what you imagine achieving in the future right in the vision section.
Next, you should develop an actionable plan to help you reach your business goals. Make sure to create metrics that can help you estimate how your business is doing and celebrate when you see significant growth. Time management is key here since you will surely fall behind without following your milestones, goals, and timeframes.
3. Set and follow safety standards
Making sure that construction site safety is a top priority is a must, especially in your type of business. One of the most dangerous working places is a construction job site, with thousands of workers sustaining fatal injuries during work. While it is impossible to ensure a one hundred percent safer workplace, you must do your best to prevent accidents.
Here is what you must include in your safety plans:
- The potential risks that may happen during the project implementation and how you can best prevent them.
- Safety training programs for your people.
- The compensation insurance for your workers.
Pro Tip: Do not forget to consult your people first when designing the safety plan since they are the ones who are working in the field and know all the most common types of accidents and risks much better.
4. Create a succession plan
Succession planning is when you create a proper tactic for replacing and passing the leadership roles. Doing so helps you determine potential leaders who can fill the vacant positions when they arise. As we previously mentioned, your safety plans help pinpoint possible risks. Still, you also need a succession plan that can detail who will take care of what happened during the crisis and what specific steps should be taken.
So, prepare a documented and written succession plan that all your workers will know and agree on.
5. Take care of cybersecurity
We previously mentioned site safety earlier on, yet one of the primary goals for your construction business is to ensure safety in the online world. Yes, we are talking about cybersecurity. It does not matter if your business is small or large; having your and your customer’s data protected is critical, as otherwise, you will put your contractors and subs at the risk of a cyber-attack.
Regularly practicing vulnerability scans, assessing risks, and making internal controls can help your construction company stay safe from cybersecurity threats.
6. Invest in the right software
From developing a strategy to forming your desired construction team, using the best construction employee scheduling software is crucial, and industry-specific software solutions enhance productivity and lessen company expenses. Moreover, technology is crucial if you want to remain competitive, resilient, and efficient, particularly when dealing with cyber-security risks, which is a subject we discussed above.
When it comes to cyber-security procedures, the right technology is essential to streamline the decision-making process and optimize talent efforts. It also drives the speed of effectiveness within your business and is vital to achieving company goals.
7. Make smart business decisions
Working with large, complex construction projects is pretty tough. And that is what you do most of the time if you own a business. Therefore, you must be able to make the right choices and decisions since every single one of your decision has the power to contribute to your company’s success or become the reason for failure.
Let’s take your construction inventory as an example. One of your obligations is to maintain a well-managed inventory since any issues related to this may cause your company unnecessary costs. Therefore, you must be smart in deciding the best solution to improve your overall inventory to avoid further thefts and human errors in tracking your assets and supplies.
Investing in the right inventory management software is the best decision ever. This inventory solution is perfectly suitable for your company’s needs when it comes to asset tracking and monitoring. So, if you want a more streamlined inventory process, look no further than this amazing and sophisticated software.
8. Properly invest in your business
Finally, the last one in our compilation of goals is exerting enough effort. Investing money and time can help you succeed in your construction company much more quickly. Therefore, buy quality equipment, train your employees, invest in the right technologies, implement good project management software for the construction industry, and give as much time and effort into your construction business as possible.
Properly investing in your business can drive your company’s bottom line success.
Four Key Construction KPIs You Need to Consider
KPIs, Key Performance Indicators, are a list of measurements used to measure your company’s long-term performance. KPIs play a huge role in achieving successful growth for your business. With KPIs, you can better understand your company’s financial, operational, and strategic success compared to other companies within the construction sector.
Making use of KPIs for your business comes with many benefits. They allow your business to measure accurately how successful your project has been. They are also a perfect way to reach your short-term goals and objectives.
If the construction site is safe, the possibility of unfortunate accidents decreases. Therefore, the chance you will finish your projects sooner and avoid additional costs is higher. Not to mention that ensuring a safer and secure working field for your workers is a moral and ethical obligation.
Therefore, security measurements must be on the top of your list. Below are three important construction safety KPIs you should keep an eye on:
- The number of safety meetings
- The rate of incidents
- The number of accidents per supplier
2. Quality Control
Overseeing the work and ensuring that high quality is maintained in each aspect of the project can help lessen the chances of reworks in the future. Your projects must follow all the quality requirements. Below are some vital KPIs that can help you in ensuring quality in your projects:
- The number of site inspections
- The number of defects during the work
- The amount of time dedicated to correcting the defects
- Internal customer satisfaction
- The costs of rework activities
3. Labor productivity
When your workers are productive, the job gets completed faster and becomes more efficient, which is very important. But how can you estimate your worker’s productivity very well? Simple, you should consider using the following KPIs:
- The rate of the equipment downtime
- The average revenue your construction company gets for every working hour
- The percentage of labor downtime
- The amount of waste/recycling per job
4. Buyout process
This process often starts when a general contractor wins a bid. During the entire process, it is necessary to determine the work percentage and monitor the buyout for any possible issues. The main KPI you should be tracking here is none other than the amount of time between the contractor winning the bid and when the subs buy out.
Pro Crew Schedule Elevates Your Business Growth
The key goals and KPIs we specifically include in our list above will help you succeed in your sector and grow your construction business much more quickly. However, keep in mind that while knowing these goals is vital, it is equally important to invest in sophisticated construction management software for subcontractors to streamline your operations and maintain your competitive edge.
There are hundreds of construction software tools, but Pro Crew Schedule is a versatile project management software designed specifically for your business. This unique software solution assists users in reporting, tracking, and communicating progress.
Look no further than Pro Crew Schedule. Request a demo now and learn more about how it can help you grow your construction business.