Studying Business Management: Key to Growing Your Construction Company

According to statistics, roughly half of all small businesses fail within just five years of operations – and the situation is much worse for construction companies. With only 35% ever reaching their fifth year of business, construction has the lowest success rate of all industry sectors. One of the reasons for this is the lack of proper knowledge in business management.

In a study entitled Critical Factors to Company Success in the Construction Industry, it was revealed that business management is the most critical factor in company success. According to the evaluation of the sub-factors of business management, organising and planning were also considered as the most important success factor. Yet, poor leadership, lack of strategic planning and uncontrolled growth are the most cited reasons for why contractors fail.

Why Do Builders Need to Study Business Management?

The construction sector has become increasingly complex over the course of time. Innovations in construction methods, designs, and materials, as well as business, legal, and technical issues mean that the management of construction projects requires professionals with the knowledge and skills to deliver on time and budget in a demanding and rapidly evolving industry.

Benefits of Studying Business Management

As construction companies grow, the owners and managers need to become more like business people than just builders. Studying business management is the path to growth and prosperity in the construction industry.

Here are the advantages builders can gain from studying business management:

1. Learn and Improve Business Skills

The main advantage of studying business management is that it can equip builders with essential skills and knowledge crucial to sustaining long-term business growth. A construction business owner with no formal business training might be ill-prepared to handle tasks on the business side of the company, such as creating a business plan, managing staff, financial accounting and negotiating. Studying business management can enhance a builder’s ability to analyze data, improve financial decisions, effectively lead people, and make better forecasts about the company’s future.

2. Increase Credibility

Studying business management usually involves pursuing a Master of Business Administration (MBA) degree. An MBA degree can benefit construction company owners by providing an additional level of credibility to the owners and their company. This could lead to an easier time securing financing from banks, private investors, and venture capitalists. While obtaining an MBA does not come cheap, the benefits it can provide surely outweigh the cost.

3. Gain Insights From Industry Peers

The value of studying or undergoing a business management training goes far beyond the bits of information that builders might pick up during their day to day operations. It also includes the insight and interaction from their peers – fellow students who have plenty to offer from their own experiences. It also includes the chance to find mentoring opportunities through lecturers and even fellow students. As any business owner knows, networking is a significant part of being a successful entrepreneur.

Leading a construction company on the path of success can be extremely challenging. However, you can beat the odds if you are equipped with the right knowledge and skills required to manage the key facets of your construction business.

To learn more about how Bizprac can help your building business succeed in today’s competitive market, call us at 1800 009 970 or send an email to sales@bizprac.com.

Testimonials

“We needed to find a program that had comprehensive job costing & accounting features, attached to a powerful but easy to use estimating program. We tried at least 3 other of the leading program brands and found Bizprac to be by far the most user friendly, without compromising critical features or functionality. Bizprac allows us to keep track of the ongoing jobs and keep’s our job claims up to date. Bizprac has allowed us to spend much more time onsite doing the job and way less time on the computer.

Whenever we need help Bizprac support staff are friendly and easy to contact. Also when we suggest new features or changes to the program, they are reviewed and added if other customers have the same request. So the combination of Bizprac’s feature-set, ease of use, and readily available support, meant going with Bizprac was a no brainer.”

Peter Ceccato
Ceccato Builders

“At our previous employer, a large building company, we became familiar with the functionality of a large construction software product from Sage. So when we went to the market to look for software, our aim was to find similar functionality at a fraction of the price. We knew it was a tall order. The only product that provided the full functionality was Bizprac. Bizprac was built by builders for builders and this was evident to us when we reviewed the product. We were very impressed with the value for money that Bizprac provided and now that we have started to use it, we’re also impressed with the support and ease of use. We’re very happy with Bizprac!”

Rafal Zuliamis
Lares Homes

“Being a builder and owning our own business, it is critical for us to have a building software package that can assist me to maximise all areas of efficiency in the business. The Bizprac system allows us as a business to manage the building and construction side as well as maintaining an up to date record of how we are tracking financially. Having a system that works well with us allows us to deliver high-quality service to our customers and suppliers at a competitive rate. we are equally impressed with the team from Bizprac administration and help desk who are always able to assist us with any inquiries or further training to maximise our program use.”

Peter Casey
Casey Builders

“I’ve been using Bizprac for 20 years. I like it because it’s easy to use and I can cost jobs easily. I went on holidays for seven months and, using Bizprac, I was able to run the business remotely”

Peter Roy
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