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A BLUEPRINT FOR
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Survive and Advance: The Blueprint for Long-Term Success in Construction
The phrase "survive and advance" has been stuck in my mind ever since I watched a 30 for 30 documentary (I think it was about NC State). The idea struck me as profound—not just for sports but also for the construction industry. It perfectly encapsulates what it takes to build a business that lasts.
As your company grows, you naturally take on more projects, develop processes, and (hopefully) establish yourself in the broader conversation. But survival isn’t about coasting; it’s about navigating the uphill battles, storms, and shifts in the market while advancing strategically.
Through my years in the industry, I’ve distilled this philosophy into five critical areas that can help any construction business survive, advance, and thrive. Let’s break them down.
1. Focus on Resilience: Building a Strong Foundation
Resilience is the foundation of any long-lasting business. Starting out, you’re the underdog—the company no one knows. That uphill battle can feel overwhelming, but if you approach it with the right mindset, you can turn challenges into opportunities.
Key Points:
- Adopt a proactive mindset: Instead of reacting to challenges, plan ahead. Think about what steps you need to take to ensure your business doesn’t fail.
- Embrace adaptability: Use challenges as opportunities to refine your processes and marketing. For example, approach branding from a position of focusing on your core competencies and targeting the persona of your specific market.
- Avoid burnout: Take a step back occasionally to look at your business from a bird’s-eye view. It’s hard to strategize when you’re consumed by daily tasks.
In business, you have a choice: be comfortable or grow. Growth often feels uncomfortable—whether it’s stepping away from the daily grind to plan long-term, adapting to change, or focusing on fewer, more strategic jobs. The hardest part can be fighting burnout and the anxiety of unpaid bills or unfinished work. As Nietzsche said, "What doesn’t kill us makes us stronger." Ironically, it’s often the things that seem like a waste of time—planning, focusing, and measuring—that keep you from just surviving and help you thrive. Lean into the discomfort; it’s where growth happens.
Pro Tip: Tools like AddWork can enhance your resilience by streamlining tasks like change orders, improving client communication, and reducing operational chaos.
2. Prioritize Core Operations: What’s Your Bread and Butter?
Once you’ve built resilience, the next step is identifying and focusing on your core operations. Ask yourself: What are the most profitable parts of my business, and how can I double down on them?
Key Points:
- Analyze your past projects: Break down your profits by project type. For instance, you might find that working directly with homeowners yields 3x the profit compared to subcontracting for general contractors.
- Identify your niche: Focus on what you’re best at. Whether it’s high-end trim carpentry or kitchen remodels, carve out a niche that’s both profitable and scalable.
- Build a strategy: Use data from past jobs to refine your marketing and resource allocation.
Early in my career, I made the mistake of trying to be all things to all people. In hindsight, this approach was flawed for many reasons. While I’ll explore this topic further in future posts, here are a few key considerations: (i) when you’re a jack of all trades, your focus is too scattered to gather meaningful data on any one specialization, making strategic decisions difficult; (ii) you can’t compete with true experts who stay ahead on trends and materials; and (iii) your overhead increases significantly as you try to manage a broad range of projects.
Example: If your biggest profits come from homeowner projects, focus your marketing efforts on attracting that audience. Keep general contractors as a secondary revenue stream for consistency.
3. Implement Incremental Improvements: Small Changes, Big Results
No one goes from a small operation to a $100 million empire overnight. Sustainable growth comes from incremental improvements—small, strategic changes that compound over time.
Examples of Incremental Improvements:
- Field Operations: Invest in tools or systems that save time and improve efficiency. For example, a 15-foot trailer outfitted with a full cut station can save hours in setup and teardown, especially in bad weather.
- Office Systems: Use tools like AddWork to streamline change orders, proposals, and communication. This can improve client satisfaction and win more projects.
- Branding: Refine your proposals and presentation materials. A polished, professional proposal can make a lasting impression and set you apart from competitors.
The key is to focus on small, manageable changes that deliver long-term benefits—like laying one brick at a time to build a fortress. Silicon Valley thrives on asking, “What could be more efficient?” Uber reimagined taxis, Amazon streamlined purchasing, and Orbitz simplified travel booking. But tech innovators don’t own the concept of incremental improvement. Look at your day-to-day operations: what feels inefficient or unnecessarily complicated? If you’re spending too much time running between cutting and measuring tile in the backyard, consider tools or processes that could save time and reduce effort. Always ask yourself, “How can I make this more efficient?”
4. Master Resource Management: Preparing for Rainy Days
As your business grows, so do your expenses. Managing resources—both financial and human—is critical to ensuring long-term survival.
Key Points:
- Understand your overhead: Break down fixed costs (e.g., office staff salaries) and variable costs (e.g., labor you can bill directly to clients).
- Build a rainy day fund: Aim to save enough to cover six months of expenses. This safety net can keep your business afloat during lean times.
- Be strategic with hiring: Differentiate between revenue-generating roles (e.g., field workers) and support roles (e.g., office managers). Both are essential, but they serve different purposes.
My approach to resource management is rooted in a conservative financial mindset, and overpreparing for downturns has consistently paid off. In construction, small costs can spiral before you even notice—tools vanish from job sites, gas expenses pile up in unnecessary drive-thru trips, and skipping a quick Change Order entry in AddWork to save time can lead to missed revenue. These inefficiencies add up. Create systems to minimize waste, hire thoughtfully rather than reactively, and prioritize saving to prepare for lean times. Small adjustments now can make a big difference later.
5. Develop a Long-Term Vision: What’s Your Endgame?
After resilience, core operations, incremental improvements, and resource management, it’s time to think about the future. What’s your vision for the next 10, 20, or 30 years?
Questions to Consider:
- Succession planning: Do you want to pass the business to your children or sell it one day?
- Scalability: Are your systems and processes built to grow, or do they depend too heavily on you?
- Legacy: What do you want your company to be known for? Quality? Innovation? Client satisfaction?
Long-term vision goes beyond profits; it’s about building a business that can succeed without you at the helm. Surprisingly, focusing on the future doesn’t detract from the present—it helps you prioritize and make intentional decisions. Failure to plan for what’s next—whether succession, scaling for larger projects, or establishing a clear legacy—can create confusion that jeopardizes your company’s long-term viability. Uncertainty in leadership and ownership is one of the most destructive forces in any organization.
When General George C. Marshall became Chief of Staff of the U.S. Army in 1939, he was reportedly told, “Congratulations on never hearing the truth again.” This highlights a key challenge: you may not see problems because no one is telling you about them. While your instincts could be right, it’s worth considering whether your team feels comfortable speaking openly. A clear, future-focused vision ensures alignment, reduces uncertainty, and keeps your business moving forward.
Survive and Advance: The Key Takeaway
The "survive and advance" mindset isn’t about coasting or getting lucky. It’s about staying in the game through resilience, prioritizing what matters, making small but meaningful improvements, managing resources wisely, and planning for the future.
Even as you grow, never forget the basics: Do good work. Everything else—your reputation, client loyalty, and long-term success—flows from that. And with tools like AddWork, you can enhance efficiency and professionalism, helping you survive, advance, and thrive in the competitive construction industry.
So, take it one step at a time. Survive today, and advance tomorrow. You’ll be amazed at how far you can go.
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