Change is the biggest issue that the construction industry faces. Why are people in construction so bullheaded? They are some of the most stubborn and headstrong people.

This starts at a young age. As children, we have fewer external experiences to draw from. This restricted resource limits our view. This is why young people think they already know everything.

This narrow perspective then becomes our standard and we see no reason to change.

Last week we discussed how 96% of construction companies go out of business within the first 10 years. This is a problem if you’re in construction.

As I was discussing last week’s post with a friend, he asked me why I do construction. Why would anyone want to start a construction company with odds like this? This question started me thinking about it.

Why is anyone doing construction if the chance of staying in business is so stacked against them? This question prompted me to reach out to some people in construction and ask them.

Why am I doing construction and how did I get here?

How Can You Change the Odds in Your Favor?

According to the US Department of Commerce, 96% of construction companies fail within the first 10 years. This is a higher failure rate than any other kind of business.

If you’re in construction…this is a problem.

Having been in construction for more than 40 years, I became aware of the problems and began to understand them. I gathered information and learned how to implement it into my business.

That’s why I beat the odds.

I’ve learned a lot over those forty-plus years and here are 7 reasons that construction companies fail.

A Plan is Only Good if You Use it.

The past couple of weeks we’ve discussed how important the Production Tracker tool is and how it can help you see the future of your business.

Building a construction business is no different than building a building. If you don’t have a plan, you won’t know what to do. You will just be guessing.

If you don’t have the right tools and know how to use them, it will be a lot harder to build anything.

The Production Tracker is one of those business building tools.

Trust me, it doesn’t take any magic.

Last week we talked about what the Production Tracker is and what makes it an important tool to have in your business building toolbox. I also pointed out how most people operating construction companies hate paperwork, but how important paperwork is to build a successful business.

It’s amazing how people in construction will use all sorts of power tools and equipment but not paperwork.

Because it Helps Keep Your Business Balanced.

Recently we discussed the importance of keeping your construction business from getting out of balance. Achieving a balanced business requires paperwork and we know how construction contractors feel about paperwork.

I know, I know, paperwork is not a very exciting topic, but neither is concrete. And we all know how important concrete is in supporting a building. The same is true for paperwork and your business.

One of the three foundational piers in business is administration and finance. One of the building blocks in that pier is a Production Tracker. This tool provides valuable information for forecasting the company’s financial needs and production plans.

You Have the Power of Choice.

There’s a saying, “A rut is a grave with both ends kicked out.” Too often we get in a rut and don’t even realize we’re there.

This is how operating a construction company can be.

Plodding back and forth, doing all those things that need to be done, never looking up to see where we are or where we’re going. If we’re not careful the rut will get so deep that we’ll never get out.

This feeling of being stuck can be overwhelming. If we wait too long to do something, that’s when it becomes a grave, and we give up and go out of business. It’s just not worth it.

That was never my plan.

Most people in construction would not consider themselves entrepreneurs. They see themselves as self-employed.

There’s not a huge difference between the two, but it is significant.

It’s the difference between working in your business or working on your business.