Is Your Construction Business Prepared for an Economic Downturn

Nobody knows when the next recession will occur. Many analysts will make predictions, some right and some wrong. The general consensus is that we can expect a downturn sometime within the next 28 months. Luckily, there are certain steps that construction businesses can take in order to prepare for a recession.

1. Teach yourself to focus on margin targets—the percentage of generated revenue that you keep after paying off production costs.
2. Search out and eliminate any profit leaks.
3. Learn how to be a better marketer of your business.
4. Focus on strategies that allow you to remain flexible, such as reducing debt and costs, avoiding hiring employees you don’t truly need, and dropping unprofitable services.
5. Evaluate and adjust your mixture of services with a focus on the highest-profit offerings.

For more details, read the article in full at Construction Business Owner.