How to future-proof your construction business with strategic planning

In the construction industry – where projects are complex, expensive and time-consuming – strategic planning becomes even more crucial to ensure projects are executed efficiently, within budget and meet the desired outcomes.

Staying ahead of the curve is crucial for business owners looking to secure long-term success. Strategic planning isn’t just a buzzword – it’s a powerful tool that can help you future-proof your construction business.

In this blog, we’ll hear from leading builders and explore practical ways construction business owners like yourself can use strategic planning to navigate challenges and seize opportunities.

Why is strategic planning important?

Strategic planning is like a blueprint for your construction business. It involves setting clear goals, identifying potential obstacles and outlining the steps needed to reach your objectives. For you, this means anticipating industry trends, embracing innovation and staying agile in the face of change.

With strategic planning, you can ensure you have an outline for these key areas:

• Long-term vision
• Resource allocation
• Risk management
• Competitive advantage
• Adapting to change
• Financial management

It’s essential to understand just how valuable strategic planning is for a running a successful construction business.

“Strategic planning is vital for a custom home builder to navigate the unique challenges and opportunities in our industry,” said Tyler Farrell, president of Killowen Construction in Heber City, Utah. “Planning allows us to stay ahead of regional trends, address specific regulatory considerations and ensure that our projects align with the distinctive needs and preferences of homeowners.”

How do you use strategic thinking to plan for the future?

Future-proofing your construction business requires a proactive approach to strategic planning using the following guidelines.

1. Assess your current situation:

Before you can plan for the future, you need a clear understanding of your present situation. Evaluate your strengths, weaknesses, opportunities and threats. Consider market trends, client expectations and the competitive landscape.

“Strategic thinking in the Utah custom home building industry involves a nuanced understanding of the local market,” Tyler said. “We carefully analyze factors such as regional design preferences, compliance with local building codes and sustainable construction practices relevant to Utah’s climate.”

Considering factors like competition, regulatory changes and economic conditions affecting the industry in your region will help keep your company nimble.

2. Define your long-term vision:

What do you want your construction business to look like in five or ten years? Define a compelling vision that aligns with your values and goals.

“I am a huge believer in writing down goals, even if they’re crazy and big,” said Meghan Billings, owner and founder of Meg & Co. Designer Homes in Twin Falls, Idaho. “And I feel like once you can clarify that vision, you start to see things in a new way. You start to see how you can make it happen instead of all the reasons that make it hard. You see opportunities that maybe you wouldn’t have noticed before.”

This vision will then serve as a guiding light, inspiring your team and shaping your strategic decisions.

3. Diversify your services:

To future-proof your construction business, consider diversifying your service offerings. Explore new markets, offer innovative products, take on different types of projects and adapt to emerging construction trends.

“By staying attuned to local dynamics, we position our business to meet the evolving demands of the Utah market effectively,” Tyler said. “This approach enables us to incorporate elements like energy-efficient features and architectural styles that resonate with Utah homeowners.”

Diversification not only expands your revenue streams but also mitigates risks associated with economic fluctuations in specific sectors.

4. Involve your team in company goals:

Your employees are your most valuable asset and getting their buy-in on company goals creates a sense of shared purpose, collaboration and commitment that are essential for achieving sustainable growth and competitiveness.

“Once we have goals nailed down, we have a team meeting where we present the plan to the team,” Meghan said. “This comes with lots of questions, excitement and sometimes slight adjustments. It’s great having that collaboration. With the vision fully explained to the team, they can make their own quarterly goals and know they’re helping us meet our goals.”

Fostering a culture of collaboration and adaptability will empower your team and ensure the success of your construction business.

5. Monitor and adapt:

Strategic planning is an ongoing process. Regularly review and adapt your plan to address changing circumstances and industry dynamics. Stay attuned to feedback from clients, monitor market trends, and be ready to pivot when necessary.

“Once we’ve finalized our ‘playbook,’ we execute with determination, aiming for success every time,” said Gloria Flores, principal of GloJoy Construction in New York City. Recognizing that unforeseen obstacles may surface, we maintain agility and efficiency with daily and weekly huddles where we fine-tune our strategy.”

Planning strategically for your business is a continuous journey that keeps your company resilient and ready for whatever the future holds.

How to put your strategic plan into motion in three easy steps

1. Evaluate:

Understand thecurrent state of your business and identify key performance indicators such as revenue, profit margins, customer satisfaction and market share.

2. Establish goals:

Based on your assessment, determine clear goals that are achievable. These goals should align with your vision and mission statements.

3. Create an action plan

Once you have defined your goals and objectives, develop strategies to achieve them. Consider what actions, initiatives or changes are needed to move your business in the right direction.

What’s the best way to implement strategic planning in your construction business?

You can easily start strategic planning for your business by downloading the free construction strategy template created by the team at Breakthrough Academy.

This strategic planning template helps builders, remodelers, contractors and other professionals in the construction industry determine short- and long-term visions for their businesses. It’s a structured framework to help pinpoint objectives, tactics and goals required to achieve success. You’ll find a completed example included at the end of the template to help guide you.

Once you use Breakthrough Academy’s strategic planning template to determine your business goals, Buildertrend can help put your initiatives into motion. Schedule a demo today to learn more!