Aligning Intention, Profitability, and Growth

Construction Champions Podcast

Oct 24, 20243 min read

In the construction industry, where the temptation to chase top-line revenue can often overshadow the importance of bottom-line profitability, Dan Murch, the co-founder of Blue Collar Back Office, shares his insights on what truly makes a "construction champion."

"If my intention is to do the right thing, I'm going to end up okay, and so are my clients, and so are the people that I care about and that are around me."

This overarching mantra is the foundation of Dan's approach to running a successful construction business. He emphasizes that the focus should not be on the easiest, cheapest, or fastest solution, but rather on doing the right thing, even if it means taking ownership of mistakes or accepting a hit on a job.

Aligning Intention, Profitability, and Growth Image

Navigating the Challenges of the Construction Industry

Dan acknowledges that the construction industry can be a challenging environment, where the temptation to avoid uncomfortable conversations and make decisions that prioritize short-term gains over long-term sustainability is ever-present.

"Sometimes people don't want to be uncomfortable, and that sometimes means telling a client something they don't want to hear, whether it's in terms of the schedule or in terms of the cost or, you know, understanding, uh, that you're going to have to go back and do something that you didn't think you were going to have to do."

However, Dan believes that by embracing these difficult conversations and taking a proactive approach, construction companies can build stronger relationships with their clients and ultimately achieve greater success.

Focusing on Profitability, Not Just Top-Line Revenue

One of the key insights Dan shares is the importance of focusing on profitability rather than just top-line revenue. He emphasizes that while many construction companies boast impressive top-line numbers, the true measure of success lies in the bottom line.

"Everybody wants to say I run a, you know, first you want to say I run a million dollar business, and then you want to say I run a $10 million business and a 20 million and so on and so forth. You know, a lot of people have those goals, and you make decisions that drive you towards that number instead of towards your bottom line number."

To combat this mindset, Dan encourages construction companies to take a granular approach to their financials, analyzing job-by-job profitability and identifying the areas of their business that are truly driving their bottom line. This level of detail allows them to make informed decisions and focus on the most profitable aspects of their operations.

Embracing Specialization and Continuous Improvement

Another key aspect of Dan's approach is the importance of specialization and continuous improvement. By identifying the areas of their business that are most profitable and aligning their resources accordingly, construction companies can become more efficient and effective in their operations.

"The more times you do it, the better you get at it. It's like anything else, you know, swinging a golf club, anything. The more times you do it, the better you get at it."

This focus on specialization and continuous improvement also extends to the company's culture and team. By ensuring that everyone is aligned with the company's vision and goals, construction companies can create a more cohesive and productive work environment.

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Conclusion: Embracing the Construction Champion Mindset

In the construction industry, where the temptation to chase top-line revenue can often overshadow the importance of profitability, Dan's insights offer a roadmap for construction companies to become true "champions." By embracing a mindset focused on doing the right thing, specializing in their most profitable areas, and continuously improving their operations, construction companies can unlock their full potential and achieve sustainable success.