Most construction business owners start with a vision. They have ideals of owning a business that works the way they want it to work. This vision typically resembles a controlled, organized and systemized company with consistent growth and a nice profit. But along the path, rather than grow and profit, their trajectory upward begins to backslide.
So, what can you say for your business? Is it growing and giving you the results you first imagined when you set out on your entrepreneurial journey? Many companies encounter roadblocks on their path to growth. Many business owners become paralyzed and can’t let go of control enough to grow. Explore the following levels to get out of your own way on your path to growth and profits.
Level 1: Getting Started
Before entrepreneurs become business owners, they were once just employees doing reliable work for their boss. They worked hard and dreamed of the day they could start their own business. Once they are bitten by the entrepreneurial bug, they go into business for themselves.
True entrepreneurs are never content just working for others. They want to stand on their own, do it their way, and make things happen. They feel boxed in following orders, rules and routine. They need to go it alone, escape and make their own decisions about how they want to do business. So, eventually, they start their own company, grow, make a profit and seek a better way to build a future. But most get stuck along the way.
Level 2: Self-Employed Small Business
As a self-employed small business owner, the entrepreneur now becomes the supervisor. They are 100% in charge of every decision, contract, customer conversation, price, purchase, delivery, and goal. They are in full control of every moving part of their business. They are on-site every day, performing much of the actual work themselves — with the help of a few workers. They are the business.
Some business owners choose to remain here at Level 2 as a self-employed, sole practitioners forever, and that’s OK. Most experience mediocre growth,
adding some employees and a truck or two, while some experience scaled growth, adding a foreman and two or
three crews. Eventually, they must decide to engage in growth or stay put as a small business owner.
Level 3: Stuck in Business
As the small business owner gathers a few customers and begins to complete work, they start receiving referrals. With that, their company continues to grow and requires an office or shop. After hiring a few direct-reports — a foreman, supervisor, some more skilled labor — the owner is still acting as the estimator, salesman, project manager and general field superintendent. As the hands-on supervisor and manager they are, they continue to make most of the decisions.
Many small business owners get held up at Level 3. Some grow to hire as many as 20 field employees, two superintendents and a project manager. And others grow even bigger before they reach their respective limits. When a company grows to a level at which the business owner can’t maintain control, it gets stuck and stops growing. At this stage, the business owner feels the itch to do something new. A business that doesn’t make a profit or grow will never meet the needs, wants and desires of a driven entrepreneurial business owner. When owners get stuck at Level 3, they begin to hate work — all the demands, stress and pressure mount. At Level 3, they realize that in order to grow and be profitable, they need to install systems, structure and a strong management team. If owners plan to make it past Level 3, they must refocus their goals.
Level 4: Business Builder
To become a business builder, owners must focus energy on improvement, innovation, scaling and building a bigger, better business. They should always keep moving toward hitting their targets and reaching new heights. Leadership and growth become crucial landmarks as priorities shift to customer acquisition and retention, coaching and talent development, establishing systems and structure, installing leading-edge integrated software, building an accountable management team, and moving the company to a higher level.
What have successful business builders done to break through to Levels 2, 3 and 4, and then keep moving toward Level 5? They start by implementing a strategic business plan. To do this, they must replace themselves with operational systems, implement a proactive hiring and recruiting program, install structure and a management team who can oversee daily functions and run the company.
Level 5: Best-in-Class Business
Throughout the development and implementation of the owner’s vision, systems, structure, people, scorecards and management team, the company will continually improve and progress to an even higher level. The better it gets, the more profit the company will produce. And as the owner moves into the role of visionary leader, the company will continuously grow and achieve best-in-class profits and results. In shift the owner’s focus to priorities and planning, the diligence of the company’s leadership will deliver a business run successfully by its dependable management team.
Level 6: Wealthy Contractor
Eventually, visionary leaders graduate to Level 6 and become true company owners. When the owner’s primary role becomes simply being the owner and leader — instead of also being a manager and worker — there is an opportunity to devote more time to finding better customers and project opportunities, seeking wealth-building investments, developing new business ventures, and enjoying the benefits of business ownership.
At Level 6, the company will have achieved its vision and should work without the owner’s full-time involvement in day-to-day operations, systems, processes, strategies and structure.
The management team will run the business and do everything necessary to perform and reach the overall goals of maintaining steady growth, reliable employees, loyal, repeat customers and stable earnings. At this level, the owner will act more like a chief executive officer (CEO) than president.
Level 7: The Business Works
When a business works, the owner is not only an owner, but also a stockholder, investor and opportunity seeker. They will also act as the CEO, leader, advisor and mentor to their management team and key stakeholders. At Level 7, the owner’s time is spent reaping the benefits of their business, without having to be there full-time. All this gives the owner the freedom to seek additional business opportunities, customers, investors, and become a community leader to help their company continue to grow.
