The Five Stages of Construction Company Progress
Jerry Aliberti • April 25, 2024
The 5 stages of construction business growth
Starting a construction company is like guiding a ship through smooth and rough waters. You begin with a vision, face uncertainties, and with skill, reach success. Understanding the stages of business growth helps you prepare for challenges and victories. Let's explore the five stages of a construction company's growth with Jerry Aliberti, a pro in the industry.
Getting Started – The Startup Stage
Just like a building needs a solid foundation, a new construction company starts with its beginning phase. Owners do it all, from operating equipment to managing money. Cash flow is tight, so spending is cautious. This phase tests the entrepreneur's abilities and shapes the company's direction.
Finding Stability – The Stable Stage
After the initial chaos settles, you enter a phase of stability. Financially, things start to look up, and the company gains a good reputation for reliability. Processes and systems begin to take shape, and a strong team culture develops.
Reaching Success – The Success Stage
Success doesn't come easy. It's a result of resilience and smart planning. In this phase, the company starts getting more business without chasing it. Investments are made wisely, driven by steady cash flow. However, not everyone aims for big growth; some are happy with steady profits.
Growing Bigger – The Growth Stage
For those with big dreams, this stage is about expanding. Acquiring other businesses and getting external funding becomes common. Management becomes more complex, and risks increase. But with the right approach, the rewards can be significant.
Maturity – The Mature Stage
In this stage, the company runs smoothly under capable management. Owners focus on relationships and future growth. It might also involve passing the company to the next generation. Smart strategies, long-term vision, and market dominance define this phase.
The journey from starting a construction company to making it mature is a story of transformation. Each stage brings its own challenges and rewards, requiring different strategies and a good understanding of the market. Whether you're just starting or leading a big company, each step defines your company's legacy and your dreams for the future.
To learn more about how Pro-Accel can help you navigate these stages visit our Operations Assessment
page.
If you need help with any of the above stages reach out to Jerry at jerry@pro-accel.com or schedule a call by clicking on the "Schedule a Call with Us" link below for a FREE Consultation.
The Challenge One of the most overlooked problems in construction is confusion over who is actually in charge of the project. In smaller companies and on smaller projects, it often falls on the superintendent. They have the field experience, are respected by the crews, and drive the work forward, while the project manager plays a more supporting role. That structure works when the projects are small, but as the company grows and the projects become larger, the cracks start to show. Clients expect the project manager to lead. They want answers on budgets, schedules, and commitments. The word “manager” in the title makes them assume that the person has the authority, and in my years of experience, they should. Meanwhile, the superintendent’s value is in driving the day-to-day in the field and keeping production moving. When the lines between the two are not redefined as a company grows, tension builds. Superintendents who have always “run the job” struggle to let go. Project managers who have always supported now need to step into leadership. The lack of clarity creates a tug of war inside the company.
Welcome to the first edition of The Growth Accelerator. This newsletter is designed for construction owners who are serious about scaling their operations without compromising profit or control. After 22-plus years in the industry, managing hundreds of millions of dollars in projects in the field and leading estimating teams responsible for more than $12 billion in projects, I have seen the patterns that make or break contractors. Each week, I will share insights from the field and boardroom to help you run a stronger, more profitable business. So let’s dive into the first issue topic! I figured I would start with the topic of one of my most viewed LinkedIn posts, which received over 225,000 impressions!
Struggling with large-scale construction budgeting? I can help contractors and developers plan, manage, and optimize budgets for complex projects. Read on...
