Claim Your Identity
Transform Your Contracting Business from Average to Exceptional Through Intentional Design
Contractor Identity Crisis
Many of the general contractors and trade contractors I’ve known have business models they haven’t fully considered. They simply are who they are today, and all that matters is winning more work and keeping up with it. The proverbial rat race. For these contractors, the situation isn’t horrible. They’re keeping their people busy and making a few bucks at it. The situation isn’t optimal, either. Profit margins are average to slightly below average, and it seems there are always a few projects a year they wish they hadn’t taken on. In my experience, this is the state of the average contractor.
Most people reading this article probably want to be better than average. That’s what Well Built and this newsletter are all about. In this article, I’ll focus on how claiming your identity can bring an end to average results for your business. Rather than being a contractor with a business model that just is, we’ll look at how to build one by design that fits you like a glove.
How you got here
Think back to when you first opened your doors. If you’re like most construction entrepreneurs, customers didn’t come flooding through the doors. Instead, you had one or two important relationships that helped you get started. You’d do anything for these clients! Accommodating their requests played a leading role in the business you eventually became. Who knew you’d get into “X” kind of project or “Y” geography?! One day you woke up as a mid-sized contractor focused on scopes, locations, and market sectors you never imagined at the outset. You did what you needed to do to survive and build a financially viable business.
It is common to see your business through a lens of who you are today rather than who you’d like to become. Now that you’ve built something of a name in the market, current and potential clients also reinforce your identity. You find yourself saying something like, “We’re a commercial general contractor focused on tenant interior work in St. Louis and the surrounding areas.” While this may be a correct statement, it may not be what you want for your business.
It’s time to stop telling yourself and the market who you are today and begin talking about the company you will become.
Claiming your Identity
Don’t be a victim of the business model you have today. You can choose the clients and projects you pursue, and you can reorganize your business to support that model. Consider the projects you love doing most.
What do they have in common? What is their size, scope, location, sector, and level of complexity? What clients can give you access to those projects, and where can you find them?
How should your company be best organized to support this business?
These and many other questions will guide you to building a new, more intentional business model based on the company you want to build rather than the company you just end up building. There’s obviously much more to this decision than we’ve covered in this article, including some serious disclaimers to ensure you’re making choices that resonate with the market, so proceed with caution, but proceed nonetheless.
It is time to build and run your business by design rather than chance.
The Spark Notes:
Break free from average contracting norms. Redefine who you are by actively designing a business model that reflects your ambitions and strengths.
Explore your preferred projects, clientele, and structure. By asking key questions about projects, clients, and internal setup, craft a tailored business model that sets you apart.
Take charge of your business journey. Make strategic decisions with confidence, navigating towards a business that aligns with your vision and values.
