Focusing Your Business
Let’s think a little more about refining your business focus. Look at the work your business has done over the past few years.
First, which were the most profitable kinds of work? Which kinds of jobs went really well, from your perspective and from the perspective of your clients? Which returned the best margins?
Now look at the strengths and experience of your managers, staff and trades.
Add those two sets of findings together. What kinds of business are these pointing to?
With this in mind, you can start to research your own local market. There are two kinds of work you may want to look out for in your chosen field.
Lower margin quick wins to generate cash and business continuity.
Higher-margin longer-term business, to provide maximum return - the real prize.
You then have to decide your priorities, based on your cash-flow needs, your work availability, and the actual work available in your area.
Developing a clear business focus helps get better value out of your time and energy. It means you consolidate your strengths and save time through not competing in areas of relative weakness. It also saves money in estimating costs. You may choose to bring in fewer tenders, but you will have a greater chance of success and higher conversion rate.