Definition of Sustainability

How sustainable is your construction business?

D. Brown Management Profile Picture
Share
Leadership Tools: Definition of Sustainability: The ability to be maintained at a certain rate or level.

Not your ability to build sustainable buildings, but the true sustainability of your business.

  • Are the market(s) that you are in stable or at least counter-cyclical to each other throughout various economic cycles?

  • Are those market(s) growing, stacking the cards in your favor that your company will continue growing?

  • Do your customers love you to the point where they keep coming back to you for projects?

  • Do you have good business development capabilities that will create predictable revenue growth?

  • Do you have good talent development systems, ensuring that your revenue growth does not exceed your ability to grow and retain leadership talent?  

  • Are you generating enough free cash flow to support your growth?

Sometimes, an outside perspective can be invaluable for helping assess and improve your sustainability. 

What does your scoreboard say?  




Build Your Most Valuable Asset
There are five main value levers that contractors can pull to truly increase the value of the business as measured in long-term return on capital and valuation during a succession.
OpEx (Benchmarks, Trends, Forecasts, and Predictions)
Operational excellence including financing and financial outcomes along with critical internal functions like supply chain, virtual construction (BIM), fabrication, and technology.
Market Share and Margins (Economic Theory and Practice)
When evaluating or deciding on a market strategy, it is helpful for contractors to understand some economic theories and real-world examples of how margins and market share relate to each other.