How Does Your Building Company Compare?

How does your building company compare to the rest of the industry?

Are you adding more or less profit than your competitors?

Are you paying yourself a market rate for running the company?

And are you generating enough net profit that will allow you to grow your building company safely and securely?

Research has shown that the same ratios appear in building companies that operate in similar sectors across Australia, New Zealand, Canada and the United States.

Understanding the benchmarks for a residential building company is a key factor in determining where your own business can be improved.

And it’s not just margins you need to be looking at…

Other factors that determine how successful your building company will become over the next 12 months and for years into the future include:

advertising spend
marketing strategy
fixed expense ratio
systems implemented
staff training
self-development.

But how do you know the optimal amount of money that should be spent on advertising in order to generate more leads?

Or which marketing strategies your competitors are using?

Or the fixed expense ratio other building companies are operating on in order to deliver a net profit that hits the industry benchmark?

What are the systems that other building companies have already implemented and how many of them are ahead of where you are right now when it comes to systemising your own building company?

And crucially, how much time other builders are investing in their own self-development?