Being picky about the clients you choose might sound crazy, especially when construction business is slow. But, you’re much better off, in the long run, sticking with suitable candidates. Many project managers fall victim to zero-sum thinking where turning down a project is seen as destructive to the business. In reality, there are always opportunities for capable, experienced, and professional construction companies that have something to offer. Let’s explore a few reasons you should be choosy about what clients you take on.
Demand for craftsmen is high (and expected to increase).
Over the past few years, the construction industry has proven its resiliency time and time again. In 2022, the entire sector was worth a booming $8.2 trillion. By 2030, that number is expected to nearly double to $14.4 trillion. Plus, the government has already guaranteed $1.2 trillion worth of investments in the economy through the historic infrastructure bill which translates to plenty of opportunities for construction companies.
All the numbers clearly point to a massive growth in demand for craftsmen which means leaders have breathing room to be diligent about the clients they choose. In other words, you don’t have to worry about the well of work drying up. There will always be more projects for you to take on if you decide to pass on a client.
Some clients are a poor match for your company.
Project managers are problem solvers at heart. If there’s an issue, your instinct is to find a solution (not complain about it). When working with clients, you’ll do everything in your power to overcome obstacles. However, this can-do attitude can end up causing more harm than good. There are some clients that simply aren’t a good match for your company, and that’s perfectly normal.
The issue might be as basic as a personality clash or as complex as disagreements over the project timeline. Regardless, it’s important to know when it’s not worth trying to bend over backward to accommodate a client that’s not a good fit. This isn’t a bad reflection on you or the client. It’s simply a poor match. Both your business and the client will benefit from the decision.
Your business should stick to its specialty.
There’s always a temptation to offer clients a smorgasbord of services rather than focusing on a specific area. The idea is that casting a wider net of offerings will lead to more projects and, ultimately, higher profits. In reality, this catch-all strategy usually backfires. The flip side of offering every possible service is that you never really specialize in any area.
At the end of the day, the really valuable clients are looking for the best of the best. You’re much more likely to get business by providing exceptional work in a single area rather than mediocre results in every area. When you choose the area you want to focus on, make sure to only work with clients in that field.
ROI is measured in more than just dollars.
As a construction leader, you’re always looking for ways to save money and increase profits to keep your business financially robust. Naturally, the dollar amount holds a lot of sway when you’re considering potential clients. The bigger the payout, the bigger the payoff…right? Not exactly. ROI is measured in more than just dollars.
A project might be a win on the balance sheet but negatively impact your business in other ways. The wrong projects can destroy team morale, harm your business’s reputation, minimize client trust, and more. You should take a holistic look at the benefits and risks of a project before deciding whether it’s worth taking on.
Before you can be picky about the clients you choose, you need the right craftsmen to build a valuable team. That’s where Madden Craftsmen can help! We specialize in helping leading construction businesses fill open positions with talented, qualified, and eager industrial professionals. Fill out a Job Order to find exactly what you need.
