Most Accurate Financial Benchmarks
Achieve top performance at every stage of your Building & Construction business life cycle
Start │ Buy │ Invest
Prevent buyer/successor remorse
Identify industry strongest/weakest drivers Access most accurate industry financial benchmarks & exclusive non-financial KPI data
Formalise a Top Performer Plan
Top 3 Concerns for Builders
Where does your business sit?
1. Owner(s) Reliance
5% believe their construction business can run well without them
2. Cash Reserves
6% have growing reserves, 26% have none
3. Business Planning
33% indicated formal planning was poor
To succeed you need
a plan…
Only 6.6% of construction business owners said their business planning was Excellent
Is your default business plan to rely on word of mouth referrals?
70.1% of builders rank word of mouth referrals as their 2nd highest risk-profitvalue driver
Most Accurate Industry Benchmarks
Extensive financial/non-financial data: Residential Building Construction
Earnings before interest and taxation (EBIT) as a percentage of gross fees after partner(s) salaries Industry Average: 6.3% Industry Benchmark: 20.9% Average of the top 20%
Fair market value business valuation multiples (sourced from a trusted and reliable business valuation tool) Industry Average: 2.46 Industry Benchmark: 3.12
Grow │Improve
• Source reliable benchmarking data
• Benchmark your business against industry Top Performers
• Systemise accurate financial reporting & cash flow management
• Compare Non-Financial KPIs
o 76 Risk-Profit-Value Drivers
• Implement improvement action items
o Profitable growth
o Productivity & efficiencies
• Ensure surplus capital or funding exists for future growth & succession
o 10.2% have strong financial resources
Profitability is the biggest Improvement Opportunity 232% !
Management Information Systems
(MIS)
Best practice financial reporting systems are rated in the industry’s top 10 profit drivers
Smart data is crucial to support timely, informed decisions:
• 64.1% can’t report on gross profit margin by division
• 38.9% can report on revenue or profit by job at least monthly
• 49.9% have systems for good to very good cash flow management
85.4% - reliant on major suppliers
Non-Financial KPI stats
Compare your business against 76 Building Construction KPIs, start with these…
69.1% - ready or planning for task automation, pre-fabrication, modular builds
61.1% - exposed to changes in external factors, exchange rates, climate, economic conditions
24.3% - strong growth in established or developing niche markets
12.8% - ahead of changes in consumer trends and buying habits
7.9% - state of the art job equipment & facilities
Profitable Growth Action Items
Any business can grow, but is your growth profitable?
Productivity & Efficiencies Action Items
Generate more with existing resources to be a Top Performer
Value │ Succession │ Exit
Exposure to Artificial Intelligence
Plan your next stage
Determine the current & true value of your business
Manage formal succession planning to grow wealth in & outside your business
Attain value needed to achieve financial independence
AI: Risk or Opportunity?
Drafting, zoning & compliance, cost estimation, scheduling, delay prediction…
Rapid advances in AI are a significant risk to all enterprises
Know the risks to ensure AI will have a positive impact on your business
Plan your next stage
Whether you want to be able to run more projects, spend less time on the tools, or exit entirely, you will need resources & plans…
18.3% - aren’t relying on business sale to fund retirement
44.9% - can get their own capital or funding when needed
61.7% - have Good or Very Good relationships with their bank or finance partner
29.9% - have documented management and ownership succession plans
35.3% - have Good or Excellent strategies to attract, motivate and retain staff 52.1% - have no strategies to optimise business value
Value your Business
• Understand true value & value needed at exit
• Small-Family-SME Business Valuations
White Paper Insights:
• 42% of SME owners don’t know what their business is worth
• 82.9% have a ‘value gap’ risk
• 1 in 10 SMEs are sale ready
• Succession Planning & Top Performer Essentials
Succession, Sale or Exit
9.6% of building construction businesses have documented & actively managed succession plans
Internal Business Succession Planning
18.6% of building construction owners have plans for skilling, re-skilling, upskilling staff and sub-contractors
Internal Succession
Target future successors
Attract with performance rewards
Develop business & soft skills Retain with ownership pathways
Top Performer Essentials
• Planning is needed to improve profitability
• More profits = higher value + financial security
• Top Performer data, benchmarks & reporting is essential for growth, improvement & succession planning Essentials
Plan well in advance
Aligned, shared vision
Top Performer plan
Annual revaluation
Sounding board support Financial independence
Accountability Support
35.6% of building construction owners have engaged a trusted adviser
SME research confirms owners need a sounding board they can turn to & trust to reduce risks, improve business performance & quality of life
Peak Performance
Start now - you only need 1 hour!
Complete a Risk-Profit-Value Driver analysis
• Why do the analysis?
o Lower risks & secure funding
o Discover profitable growth opportunities
o Identify key strengths/weaknesses
o Leverage the power of non-financial KPIs
• Attend a Top Performer Workshop
• Scorecard, Top Performer Report & improvement action items
Our vision & goals
Smart data to achieve top performance
Highly respected & trusted advisory practice
Industry thought leaders
SME data mining specialists
Most accurate industry financial & valuation benchmarks
Exclusive, scalable AUS/NZ non-financial KPI data
Our clients - helping you become an industry
Top Performer
