In December, I blogged about two key components to help you achieve clear visibility into your construction business: a solid reporting system and monitoring capabilities such as alerts and dashboards. These two components can help you keep track of what has already happened and what’s happening now in your business. The next step in gaining true business visibility is to analyze your data to understand why your company is performing the way it is.
At first, you may be tempted to analyze too much. Here is where focus is key. Step back and decide what areas you want to improve in your business. In his October post, 5 Steps to Improve Your Construction Decision Making, Dennis Stejskal suggests you do that at least once a year during a business visibility audit. Here are three key things you should be analyzing:
- Which type of work is most profitable for your business?
- What is causing negative cash flow?
- How productive is your labor?
For more information about analyzing your construction business, download the analyzing edition of The Construction Executive’s Interactive Guide to Business Visibility. In this e-book, you will learn why analyzing your construction business is important, common obstacles to adopting business analytics, and tips and best practices you can implement right away to make incremental improvements in the way you shape your business strategy.
About the Author
Deb Carpenter-Beck is a writer and marketer with more than 25 years of experience in the construction and real estate industries. She often writes about technology and best practices and is passionate about helping contractors and real estate professionals achieve their business goals. You can follow her on Twitter @DebCBConstruct.