The success of a construction business is not its gross profit, but its net profit. When companies gain control of overhead, then sales no longer drive the organization. Absent the desperate need for sales, companies can pursue solid, risk-balanced work—jobs in the geographic area and of the size and type from which they normally profit.
They stop chasing non-typical, high-risk work so they can cover fixed overhead with ease.
- The successful contractor of the future will be able to:
- Reduce overhead practically overnight.
- Take on the kind of projects that are normally profitable.
- Avoid all jobs that are out of the ordinary.