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8 Steps to Become a Wealthy Contractor

George Hedley, Posted 08/01/2017

What do successful construction business owners do to build wealth? Over the last several years, I have closely observed and gotten to know many highly successful construction company owners. Via interviewing them for these articles, coaching them one-on-one and working with them in our Construction Business Owner BIZGROUPS, several common factors have emerged as to what makes them become the best in their markets, extremely profitable and continuously building wealth.

 

1. Focused on Purpose and Priorities

People who know where they are going, have clear direction and purpose in their personal and professional lives. This keeps them focused on their priorities and the steps required to get them there. They don't get sidetracked chasing goals that don't provide a high financial and personal return.

Successful business owners design their companies to provide value-added help to customers who appreciate what they do, and will gladly pay for their expertise and passion. When you are doing what you love and helping those who you enjoy working with, your business will explode. And guess what follows? Your personal life. On-purpose is a lever for peak performance, profits and building wealth.

 

2. Big Written Goals

Every top-performing company has a system to set, track and monitor its written goals. Based on a survey I performed of over 2,500 companies, less than 20 percent of all business owners write, track and set performance goals. According to a survey of the Construction Financial Management Association, companies with written goals and strategic plans achieve much higher profits than those without. The higher you aim, the higher you go.

Every successful business I know takes one or two days every year to hold a management team retreat where they develop and write out its goals and implementation plans for the upcoming year. When you stop to think and plan, the vision becomes clear. When all you do is work, your vision stays repressed deep within your brain and can't come out or get creative.

 

3. Strong Management Team

It's impossible to build a great company without a great management team. When entrepreneurs start their businesses, they try to do most of the important work themselves. After a while, they hire a few employees to fill in the gaps and take some of their workload. This solves the short-term problem until they grow to the next level where they get stressed out, maxed out and can't do anymore themselves. At this point, business owners must make a decision-grow or shrink back to their levels of comfort and control. Only top business owners get beyond micromanaging what they can control and letting go of daily decisions by hiring strong people and building an accountability and responsibility system to allow them to grow.

 

4. Regular Accountability Meetings

Every successful business has regular systems to communicate with its managers and employees and keep them focused on the big picture. A regular meeting schedule with an agenda comprised of your top priorities will keep you and your team focused on what really matters. Top companies focus on achieving results and measuring actual job performance in their weekly meetings. These contractors have weekly superintendent and foremen meetings to review productivity goals, targets and accomplishments over the past week, and discuss plans for the upcoming week.

 

5. Invest in Yourself!

Successful people hang around successful people. A common thread amongst top business owners is their desire to continually improve and learn new and better ways to do business and live their lives. They get together often with mentors and associates to talk about business opportunities, issues and critical choices. They are involved in industry associations and attend annual conventions for the training workshops and networking, to learn from peers, to look at the latest equipment and software, and seek new ideas on how to build their companies. Most successful business owners also read lots of books and trade magazines to stay abreast of the latest trends and innovative ideas. Many are also involved as members of mastermind peer groups with other business owners who meet regularly together to discuss issues, challenges, plans and decisions. Investing in yourself is the best way to get a return.

 

6. Don't Sell Low Price!

It is hard to be at the top of the class by trying to make a big profit competing against too many competitors who only get chosen based on their lowest prices. It takes effort to build customer relationships, build effective business development systems or have market niches that set your company apart. Even during tough economic times, top companies leverage their excellent work and service into profits by moving from selling low price to focusing on customers who pay for and award contracts based on trust, performance, and exceptional knowledge or technical skills.

 

7. Multiple Streams of Income

If the revenue faucet shuts off and there aren't any more good jobs to bid, what's left to do, if that's all you've ever done? While the faucet is flowing, most companies only do what they know how to do assuming the flow will continue forever. But, top companies invest some of their time and talent, and look for additional ways to find other sources of income, which will provide a steady flow of cash during both good and bad times. Wealthy contractors realize that one main reason you own a business is to create wealth. They take a portion of their profits and reinvest them into income producing ventures like rental properties, service businesses and manufacturing companies. These business owners now have part-time responsibilities managing these investments, which continually produce ongoing income for the owners with little time or effort.

 

8. Give More!

Getting to know these business owners, it became apparent that the more you give, the more you get. Each of these people is involved in some kind of charity work in his/her community. They dedicate time and money to help others. They are leaders for a cause or organization with goals to change people's lives or make the world a better place. Business owners who don't give are missing out on the benefits of what helping others have to offer. Exciting people do exciting things with their wealth. Wealth is more than money and possessions. It is a way of life that enriches yourself as you enrich others. Becoming a wealthy business owner starts with helping others.

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George Hedley is a professional construction BIZCOACH and popular industry speaker who helps contractors increase profits, grow and get their companies to work. To learn more, visit www.hardhatpresentations.com.

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