Captain Must Run A Tight Ship

The Captain Must Run A Tight Ship to Benefit

By Eugene Peterson

From my observation as a consultant, many construction companies and construction subcontractors would have greater success if the Captain (owner/manager) of their business understood and practiced three simple principles long practiced by Captains of sea-going vessels.  The principles are simple.  As Captain, you need to know where you are going.  As Captain, you need to know where you are.  And as Captain, if you find yourself off course, you need to make necessary corrections to get back on course.  If you are the Captain (owner/manager) of a business that experiences minimal profit, marginal growth, one that drifts with the currents, gets blown by the winds, is found sailing in circles (getting nowhere), and has a marginal return on investment, here are a couple of helps to get you moving in the direction of profitability.
Know Where You Are Going
Once the destination is determined, the ship’s Captain sets the timetable, calculates the fuel requirements and checks for weather before setting the course. The business Captain should take similar steps. We call this a Business Plan.
Know Where You Are
This is done by understanding the key indicators and financial numbers that tell you where you are in the journey.  If you don’t have a good accounting system – get one.  If you don’t know how to read the numbers – learn. Become proactive in comparing, analyzing and reviewing your current financials, including expenses and job costs.  Make it a priority to “touch the money” – schedule an appointment with yourself monthly, where you aren’t disturbed or interrupted to review the numbers. Know where you are in relation to the plan.