Over the last few weeks I watched the movie ‘The Big Short’ and read the ‘Wolf Of Wall Street’ book. Both make you think about the future and how fast the crash of 2007 / 2008 happened. Fast forward to 2016. We have had over 7 years of economic recovery, even though to many it may not seem like much of a recovery.
Most of my mastermind construction business owner BIZ-GROUP members are experiencing record profits and growth beyond their expectations. And most are busting at the seams and need to hire managers as well as more field supervisors and workers. Last week I had dinner with the president of a large $400 million construction company who has seen over 100% growth in the last few years. And many of my BIZCOACH clients are also growing at 25% or more per year while the construction economy has been growing around 9% to 11% per year.
So, how long will the economic growth last?
Most construction economists are predicting continued 10% growth for the next 2 years. But this boom will end someday. Either it will slow down fast or slow. It depends on many factors including the presidential election, world political situations, the banking rules and regulations, and the need for new construction.
So, what should you do now?
Simple answer – make as much money as you can as fast as you can. And save as much as you can without holding your company back.
Don’t hesitate to HIRE people you need now!
People are required get all your projects done on-time, under budget, and professionally. I see several companies not willing to hire as they have grown. And their projects are not being managed properly as a result. This is extremely risky as all it takes is a couple of projects to go south to wipe out all you’ve worked for.
Without enough good managers to perform proper documentation, supervision, contract management, and constant communication with customers, you’re setting yourself up for major problems to cost you lots of money.
And especially, don’t over commit to long term obligations like large equipment leases or purchases, buying buildings or land to develop in a few years, buying a bigger house or vacation property you can’t afford, and borrowing based on your future ability to pay.
Let me know if I can help you decide which people you need to hire and how to build a strong leadership team. I also have a new Ebook called ‘BIZ-ORG Chart & Position Descriptions’ to help you do the right thing. Email to get a copy.