Andy Burrows — The Trades Coach — sees many parallels between running a successful construction business and baking a cake. He explains . . .
I’m not much of a baker. However, one thing I do know is if you rush the process you may end up with a cake that’s either flat, burnt, or doesn’t taste right — or maybe even all three!
When I thought about developing successful businesses recently, I saw some similarities to the baking process.
Both endeavours require careful planning, the right ingredients, precise execution, and a dash of creativity. In this article, I’ll explore how to grow a profitable building company by drawing parallels to the art of baking a delicious cake.
• Recipe development — the strategic plan
Just as a baker begins with a recipe, a business owner starts with a business plan. This blueprint outlines the company’s goals, core business strategy, target market, services offered, and financial projections.
Like adjusting ingredients in a recipe, the plan should be flexible enough to adapt to market changes and unforeseen challenges.
• Quality ingredients — a skilled workforce
Just as a cake relies on quality ingredients, a building company depends on skilled workers. Hiring experienced architects, engineers and carpenters ensures that each project is completed to the required standards.
The same thing applies to materials and sub-trades. Using cheaper alternatives here may save you a few dollars in the short term, but will definitely affect the end result and cost you more.
• Precise measurements — project budgeting and cost control
In baking, precise measurements are crucial for achieving the desired texture and flavour. Similarly, accurate budgeting and cost control are absolutely essential for the financial health of a building company.
Monitoring project expenses, negotiating supplier contracts and minimising waste ensures that projects remain profitable. Margins in the building industry are notoriously low, so there is little room for mistakes.
• Mixing technique — teamwork
Just as a baker must mix ingredients thoroughly, successful building projects require seamless collaboration among team members.
Effective communication, co-ordination, and co-operation ensures everyone works towards a common goal.
Like achieving the right consistency in cake batter, fostering a harmonious work environment leads to smooth project execution. By proactively setting the right “mixing technique” to your team you will achieve more consistent results with less management input.
• Oven temperature — macro financial analysis
Baking a cake at the right temperature is crucial for consistent baking and the right texture. Too hot and you’ll burn it — too cool and it won’t bake at all. Similarly, understanding what is the optimal growth rate for your company is essential for its long-term survival and success.
It’s easy to go too hot and grow a building company too fast. Just quote cheap and you will see that top line revenue rocket. The danger is you will burn the company out. Similarly, take the zero-risk approach and your competition will pass you by.
• Baking time — project management
Just as a cake requires the right amount of time in the oven, construction projects must be carefully managed to meet deadlines and budget constraints. Small gains or losses here can have a massive effect on your bottom line. Like monitoring a cake’s progress to prevent over-baking, regular oversight ensures projects stay on track.
• Decoration — branding and marketing
A beautifully decorated cake catches the eye and entices the taste buds. Similarly, effective branding and marketing distinguish a building company from its competitors. This is where a bit of creativity will pay dividends, and will also encourage some strategic thought into what type of customers and projects you are looking to attract.
• Taste test — feedback and improvement
Finally, just as a baker seeks feedback on their creation, a successful building company seeks input from clients and stakeholders. Listening to feedback, addressing areas for improvement, and continuously refining processes ensure ongoing success. Like tweaking a recipe to perfection, embracing feedback leads to refinement and profitable growth.
It will soon be a new financial year — a great time to have a mini reset of your business and to re-commit to some business improvement plans for the balance of this year — tweaking your business recipe, as it were.
Of course, growing a business profitably is way more complex than baking a cake. However, by following the recipe outlined above, owners can build thriving businesses that stand the test of time.
Just as a well-baked cake brings joy to those who indulge, a successful building company brings happiness to clients and prosperity to its founders.
If you want help to improve your business recipe reach out to me at [email protected].
