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How To Achieve A Successful Turnaround For The Building Industry

There is a looming crisis in the Australian building industry. The slowdown in construction and building projects continues to intensify in Victoria and also in Queensland. 6,895 jobs or almost a third of the industry’s full time staff in Victoria will be cut by June as businesses attempt to reduce their costs. The downturn is being blamed on decreased demand for new homes, consumer confidence and stricter credit requirements. Many building companies are giving large discounts to encourage customers to purchase new homes, but even potential first-time home owners are holding off due to poor perceived job security across all industries.
It has been predicted that the building industry will make a steady recovery by 2013, but the crisis currently continues to build. If your building and construction business is in trouble, it is crucial to act straight away. You can still save your business. Below we discuss how a successful turnaround can be achieved by introducing accountability measures in the areas of sales, operations and financial management.
Operations
First and foremost, implement a systems approach with accountability measures. All aspects of your business must be measured, with links back to financial measures so performance can be determined and process problems identified. As part of this, you must have strong site supervision to ensure delays in construction and project progress are swiftly dealt with. A project manager should be regularly on-site to take responsibility for the function and success of each project.
If you are trying to reduce costs, it isn’t enough to simply get the best rates from your suppliers. You must also have efficient ordering and scheduling of materials in place, wherein you are able to pay suppliers on time and deliver the materials to the site without delay.
Your operations pipeline must function like clock-work. Drill down to find any bottlenecks in the system, where operations are measured and performance is driven by financial accountability measures. As an example, do not wait until the time of final claim to deal with any building defects. If defects are handled sooner, closer to when they are first reported, the return of trades to make repairs is more effective than handling defects 3 months later when repair work is costly and time-consuming.
Performance
Your staff must have daily, weekly and monthly performance measures, especially including weekly turnover targets. To let your staff know what you expect from them, implement individuals KPIs and performance criteria. Also, measure their performance daily to see if they are on track to meet the criteria set. Non-performers need to improve or be moved on to allow your business to grow and get the “right people on the bus”.
Sales force
Just like in operations, your sales force need to be highly focused on accountability to sales targets. Appropriate recruitment processes must be in place to ensure that you are employing effective and experienced sales people. Efficiency gains can also be achieved by breaking up existing sales portfolios into geographic regions to reduce travel time.
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How To Achieve A Sales Driven Recovery For Your Building And Construction Business

The Australian building industry crisis continues to intensify as thousands of jobs are expected to be cut by June in an attempt by construction companies to reduce their costs. Due to the decreased demand for new homes, weak consumer confidence and stricter credit requirements, the building industry crisis continues to build well before its predicted recovery by 2013.

If your building and construction business is in trouble, it is crucial to take immediate action. You can still achieve a successful turnaround for your business by focusing on the areas of sales, operations and cash flow management. In this article, we take a closer look at the area of sales and how it can drive your business towards recovery.

Have a marketing strategy in place

You need to ensure that you have a very clear marketing strategy that results in strong lead generation. The more leads and potential customers you find, the better your chances of getting more contracts for jobs. Determine your target market and select the marketing tools that can effectively attract and convert your potential customers into new home owners.

If you are having a difficult time in developing a marketing strategy, consult with a building industry turnaround expert as they can assist you in designing and implementing an effective marketing strategy that can increase leads and signed contracts to grow your pipeline of work.

Use a costing template

Develop a precise costing template for quotes based on target gross profit required for each job and make it a standard template for your Overwhelmed By House Renovation sales team to use when quoting potential customers. In this way, you can easily make a projection of your profit per signed contract.

Know your conversion rate

Know your conversion rate and your average lead time from lead to quote and then from quote to contract. You also need to know the average time from signing of contract to commencement of works on site and the average time it takes to complete a job. With target weekly invoicing already determined when the target cost structure was established, it will then be easier to calculate the following:

Leads required each week, both number and value

Quotes required each week, both number and value

Contracts required each week, both number and value

Value of Lead pipeline required

Value of Quote pipeline required

Value of Contract pipeline required

Value of jobs in progress

Record and monitor these weekly and get your sales team to meet the weekly leads, quotes and contracts requirement.

Monitor the performance of your sales team

To achieve a sales driven recovery for your business, it is vital that your sales team is performing well. A good number to target is an average of $200,000 per sales agent, per month in signed contracts. Your sales agents must be spending most of their time on California Abc Test Uber field calls, selling to potential customers. If any of your sales agents are not performing at these levels, then replace them with those …