---
title: 10 Steps To Building A Successful Construction Company In This New Economy
description: List of 10 steps residential contractors should take to make the switch from surviving to a growing and thriving business.
image: https://www.shawnmccadden.com/hs-fs/file-590018722-jpg/images/construction_business_management_team-wr.jpg
---

[![the design builders blog](https://www.shawnmccadden.com/hs-fs/file-1968953853-jpg/images/ShawnMccadden-DBblog-header.jpg "the design builders blog")](https://www.shawnmccadden.com/)

[![Subscribe to the Design/Builders Blog](https://no-cache.hubspot.com/cta/default/81069/62868785-47fb-4751-8ade-e9392edbbdd1.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/62868785-47fb-4751-8ade-e9392edbbdd1)

# The Design Builder's Blog

## [10 Steps To Building A Successful Construction Company In This New Economy](https://www.shawnmccadden.com/the-design-builders-blog/bid/102658/10-Steps-To-Building-A-Successful-Construction-Company-In-This-New-Economy)

Posted by [Shawn McCadden](https://www.shawnmccadden.com/the-design-builders-blog/author/shawn-mccadden) on Tue, Mar 18,2014 @ 06:00 AM

- [Tweet](https://twitter.com/share)

## **10 Steps To Building A Successful Construction Company In This New Economy**

![Construction business growth strategies](https://www.shawnmccadden.com/hs-fs/file-590018722-jpg/images/construction_business_management_team-wr.jpg?width=183&height=122&name=construction_business_management_team-wr.jpg)

 

For the last five years or so many construction business owners were operating their businesses in survival mode. **Now, with the economy improving and residential construction activity picking up, many contractors will be looking to grow their businesses again.**  If you are looking to grow your business here is **my list of 10 steps contractors should take to make the switch from surviving to thriving.  ******

 

> 1. **Build your team**.  You can't do it all; no matter how much you try.  Find the right people with the right attitudes, skills and personalities to be part of your team.
> 2. **Be ready to take advantage of opportunities for growth.**  Hire and properly train employees before you already need them and their required skills up and running.  
> 3. **You are not the Energizer bunny!**  Make sure you have a plan for recharging your batteries and keeping up the motivation you will need to make your dream business happen.
> 4. **![Construction company leadership](https://www.shawnmccadden.com/hs-fs/file-581797279-jpg/images/construction_company_leadership-wr.jpg?width=135&height=201&name=construction_company_leadership-wr.jpg)Be the leader you need to be.**  Work on your leadership skills and make sure you understand the difference between leadership and management, and when to use one versus the other.   **Good employees want to be lead, not supervised.**
> 5. **Be careful about and watch your overhead expenses.**   Many construction businesses failed during the recession because they **could not cover the cost of the overhead they were committed to** when volume and or gross profits dropped.
> 6. **No Wild Ass Guesses (WAG)!**  Know the costs of doing more business before you do more business so you can **use the right markup to price your jobs profitably.**
> 7. **Dip your toe in the water before you dive in.**  Before you actually increase your overhead costs test the marketplace you plan to work in to **make sure you can sell at the increased pricing you'll need** and can sell enough work at that price.   Consider if you are in the right market to do business but also if you have **the right marketing and sales skills in place.**
> 8. **Don't be blind-sighted by increased job costs.**  If you like the idea of an extended backlog of work find a way to protect your planned profits from escalating costs.   **Labor and many material costs are expected to go up dramatically before the end of the year.**  Be sure to price your work for the actual costs you will incur at the time you produce it.
> 9. **![Manage construction company growth](https://www.shawnmccadden.com/hs-fs/file-588271836-jpg/images/speed_limit_sign-wr.jpg?width=136&height=179&name=speed_limit_sign-wr.jpg)Know your limits.**  Do what you can yourself but get the professional help you need to do things right; **to avoid costly mistakes,** increase the likelihood of success and maximize the results for your all your efforts.
> 10. **Think things through first and create a written plan to guide you. **Successfully growing your remodeling business or construction **business takes much more than just selling more work and adding employees.  ** Without a plan to commit to, business success might only be a short lived dream for you and your employees. 

 

### **Increase the likelihood of your success**

**Be sure to build accountability into your business and your leadership.  **Share your plan and your measurables with someone who can and you will allow to hold you accountable to following your plan and achieving your goals.  This could be a spouse, relative, business coach or a mentor.   **Make them part of your team and give them permission to be brutally honest with you when needed. **

**You can't do it all; no matter how much you try.**

**  
**

 Topics: [New Business Realities](https://www.shawnmccadden.com/the-design-builders-blog/topic/new-business-realities), [Margin and Markup](https://www.shawnmccadden.com/the-design-builders-blog/topic/margin-and-markup), [Business Management](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-management), [Success Strategies](https://www.shawnmccadden.com/the-design-builders-blog/topic/success-strategies), [Business Growth](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-growth), [Sage Advice](https://www.shawnmccadden.com/the-design-builders-blog/topic/sage-advice)

### Subscribe by Email

[![please donate](https://no-cache.hubspot.com/cta/default/81069/d6888f7b-f488-4356-88b4-14128c5aab4b.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/d6888f7b-f488-4356-88b4-14128c5aab4b)

[![cogs worksheet tool free download](https://no-cache.hubspot.com/cta/default/81069/7baf34b1-cad0-4bdf-84eb-b21dd6da4973.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/7baf34b1-cad0-4bdf-84eb-b21dd6da4973)

[![MA CSL Classes](https://no-cache.hubspot.com/cta/default/81069/663d3a42-f898-41b6-850d-dd6c96899668.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/663d3a42-f898-41b6-850d-dd6c96899668)

### Are You Documenting Your Crew's  Compliance With The RRP Rule? 

[![download free RRP checklist](https://no-cache.hubspot.com/cta/default/81069/dd6aace9-6cb0-4ad2-a55a-09846d7f5b5e.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/dd6aace9-6cb0-4ad2-a55a-09846d7f5b5e)  

### Frustrated With Your Current Method Of Estimating Projects? 

 [![free excel estimating template](https://no-cache.hubspot.com/cta/default/81069/14387bf1-ade4-4b88-9c17-1b56a85bab52.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/14387bf1-ade4-4b88-9c17-1b56a85bab52)

## Not Sure Of Your True Labor Costs?

 [![New Call-to-action](https://no-cache.hubspot.com/cta/default/81069/390dc019-2e22-41cc-8b47-eeb259f25bf3.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/390dc019-2e22-41cc-8b47-eeb259f25bf3)

### Find what you are looking for - Search by topic

- [203K Loan Info (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/203k-loan-info)
- [Advantages of Design/Build (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/advantages-of-designbuild)
- [Aging In Place (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/aging-in-place)
- [Allowances (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/allowances)
- [Books for Contractors (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/books-for-contractors)
- [Breaking $1Million (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/breaking-1million)
- [Building Relationships (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/building-relationships)
- [Business Considerations (15)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-considerations)
- [Business Financials (30)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-financials)
- [Business Growth (43)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-growth)
- [Business Management (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-management)
- [Business Planning (42)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-planning)
- [Careers in Construction (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/careers-in-construction)
- [Cash Flow (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/cash-flow)
- [Contractor Training (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/contractor-training)
- [Contracts (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/contracts)
- [Craftsmanship (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/craftsmanship)
- [Creating Referrals (16)](https://www.shawnmccadden.com/the-design-builders-blog/topic/creating-referrals)
- [Culture (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/culture)
- [Customer Relations (38)](https://www.shawnmccadden.com/the-design-builders-blog/topic/customer-relations)
- [Defining Design/Build (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/defining-designbuild)
- [Definitions (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/definitions)
- [Design Options (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/design-options)
- [Design Trends (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/design-trends)
- [Design/Build Process (7)](https://www.shawnmccadden.com/the-design-builders-blog/topic/designbuild-process)
- [Dietz Lawsuit Related (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/dietz-lawsuit-related)
- [Differentiating your Business (68)](https://www.shawnmccadden.com/the-design-builders-blog/topic/differentiating-your-business)
- [Earning More Money (33)](https://www.shawnmccadden.com/the-design-builders-blog/topic/earning-more-money)
- [Effects of the RRP Rule (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/effects-of-the-rrp-rule)
- [Employee Advancement (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/employee-advancement)
- [Employee Relations (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/employee-relations)
- [Enforcement and Inspections (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/enforcement-and-inspections)
- [EPA Announcements (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/epa-announcements)
- [EPA RRP Lead Rules (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/epa-rrp-lead-rules)
- [EPA RRP Rule Updates (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/epa-rrp-rule-updates)
- [Estimating (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/estimating)
- [Estimating Considerations (24)](https://www.shawnmccadden.com/the-design-builders-blog/topic/estimating-considerations)
- [Financial Related Topics (41)](https://www.shawnmccadden.com/the-design-builders-blog/topic/financial-related-topics)
- [Free Stuff (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/free-stuff)
- [Fun Stuff (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/fun-stuff)
- [Future of the Remodeling Industry (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/future-of-the-remodeling-industry)
- [Generation Y (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/generation-y)
- [Government Regulations (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/government-regulations)
- [Green Considerations (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/green-considerations)
- [Guest Blogs (72)](https://www.shawnmccadden.com/the-design-builders-blog/topic/guest-blogs)
- [Hiring and Firing (18)](https://www.shawnmccadden.com/the-design-builders-blog/topic/hiring-and-firing)
- [How You Do Business (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/how-you-do-business)
- [Insurance Considerations (15)](https://www.shawnmccadden.com/the-design-builders-blog/topic/insurance-considerations)
- [Job Costing Considerations (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/job-costing-considerations)
- [Keeping More Money (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/keeping-more-money)
- [Labor Costs (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/labor-costs)
- [LBM Dealer Topics (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lbm-dealer-topics)
- [LBM Related Topics (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lbm-related-topics)
- [Lead Carpenter System (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lead-carpenter-system)
- [Lead Generation (16)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lead-generation)
- [Lead Test Kits and Testing (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lead-test-kits-and-testing)
- [Leadership (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/leadership)
- [Legal Considerations (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/legal-considerations)
- [Legal Related (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/legal-related)
- [Letters to send to Politicians (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/letters-to-send-to-politicians)
- [MA CSL Related (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/ma-csl-related)
- [MA HIC Regulations (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/ma-hic-regulations)
- [Managing Allowances (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/managing-allowances)
- [Margin and Markup (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/margin-and-markup)
- [Marketing (27)](https://www.shawnmccadden.com/the-design-builders-blog/topic/marketing)
- [Marketing Considerations (28)](https://www.shawnmccadden.com/the-design-builders-blog/topic/marketing-considerations)
- [Marketing Ideas (24)](https://www.shawnmccadden.com/the-design-builders-blog/topic/marketing-ideas)
- [Mentoring/Coaching (20)](https://www.shawnmccadden.com/the-design-builders-blog/topic/mentoringcoaching)
- [New Business Realities (25)](https://www.shawnmccadden.com/the-design-builders-blog/topic/new-business-realities)
- [Opinions from Contractors (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/opinions-from-contractors)
- [Opinions from Design/Builders (7)](https://www.shawnmccadden.com/the-design-builders-blog/topic/opinions-from-designbuilders)
- [Opt Out Related (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/opt-out-related)
- [OSHA - EPA Challenges (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/osha-epa-challenges)
- [OSHA Considerations (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/osha-considerations)
- [Paints and Painting (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/paints-and-painting)
- [Personal Protection (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/personal-protection)
- [Plans and Specifications (19)](https://www.shawnmccadden.com/the-design-builders-blog/topic/plans-and-specifications)
- [Pop Quizes (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/pop-quizes)
- [Prequalifying (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/prequalifying)
- [Production Considerations (32)](https://www.shawnmccadden.com/the-design-builders-blog/topic/production-considerations)
- [Profit Sharing (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/profit-sharing)
- [Project Meetings (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/project-meetings)
- [Questions from Visitors (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/questions-from-visitors)
- [QuickBooks Related (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/quickbooks-related)
- [Recruting (19)](https://www.shawnmccadden.com/the-design-builders-blog/topic/recruting)
- [Remodeler Education (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/remodeler-education)
- [Retirement Planning (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/retirement-planning)
- [Risk Management (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/risk-management)
- [RRP Related (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/rrp-related)
- [RRP Training (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/rrp-training)
- [Safety (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/safety)
- [Sage Advice (26)](https://www.shawnmccadden.com/the-design-builders-blog/topic/sage-advice)
- [Sales (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/sales)
- [Sales Considerations (37)](https://www.shawnmccadden.com/the-design-builders-blog/topic/sales-considerations)
- [Seasonal Opportunities (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/seasonal-opportunities)
- [Self Quizes (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/self-quizes)
- [Selling your Business (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/selling-your-business)
- [Shawn's Predictions (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/shawn39s-predictions)
- [Social Media for Contractors (6)](https://www.shawnmccadden.com/the-design-builders-blog/topic/social-media-for-contractors)
- [Software Related (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/software-related)
- [Starting a Business (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/starting-a-business)
- [Statistics (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/statistics)
- [Subcontractor Considerations (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/subcontractor-considerations)
- [Success Strategies (77)](https://www.shawnmccadden.com/the-design-builders-blog/topic/success-strategies)
- [Taxes (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/taxes)
- [Team Building (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/team-building)
- [Technology for Remodelers (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/technology-for-remodelers)
- [Tools and Supplies (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/tools-and-supplies)
- [Trade Associations (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/trade-associations)
- [Videos (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/videos)
- [Violation Reports (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/violation-reports)
- [Web Site Related (15)](https://www.shawnmccadden.com/the-design-builders-blog/topic/web-site-related)
- [Worker Training (19)](https://www.shawnmccadden.com/the-design-builders-blog/topic/worker-training)
- [Workers Compensation (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/workers-compensation)
- [Working with Design Professionals (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/working-with-design-professionals)
- [Working with Vendors (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/working-with-vendors)

[![accounting blogs](http://logos-pictures.s3.amazonaws.com/byn-badge.png)](http://buildyournumbers.com/top-accounting-blogs/)

Take [QuickBooks Classes](http://buildyournumbers.com/) at BuildYourNumbers.com

### Most Popular Posts

### Straight Forward Information and Advice

***"Finally a site where I get the information I have been looking for!!"***

**Allen A. Reed  
Al Reed Builders**

 

***"I always read your blogs Shawn. You pack of ton of great data into a very concise and understandable format"***

**David Supple  
New England Design and Construction**

 

***"Been following you for years Shawn! You've always offered very valuable information and personal reflection related to our industry. Thanks!"***

****Peter Robinson  
Peter A. Robinson Remodeling LLC****

** **