When you think about success in the construction industry, what comes to mind? It’s often visions of well-executed projects, satisfied clients, and a thriving business. While these are essential elements, there’s another critical factor that can make or break your journey as a construction contractor: your financial mindset.
We hear from construction business owners all the time saying:
“I didn’t go to school to be in accounting. I went to school for construction.”
Or
“I know how to build a building, but when it comes to the financial stuff, I feel like I just can’t get it.”
Or
“I just don’t want to even look at the books.”
What if you could change that mindset and start feeling in control and actually enjoying your financial future?
What Is a Financial Mindset?
Your financial mindset is the unique lens through which you view and manage your construction business’s finances. It’s your attitude, beliefs, and perceptions about money and wealth, and it plays a significant role in your financial success. This mindset guides you in your decision making, your attitude towards “the books” and can create periods of anxiety or feelings of abundance.
The Influence of Mindset on Financial Success
Your financial mindset isn’t just about thinking positively; it’s about adopting a set of beliefs and behaviors that empower you to make wise financial decisions. Here’s how a strong financial mindset can impact your success in the construction industry:
- It Shapes Your Financial Habits:
– A confident financial mindset fosters healthy financial habits. These healthy habits also create a sense of calm.
– It encourages you to set and follow a budget, save for the future, and manage cash flow effectively.
– Your mindset can encourage you to seek financial education and stay informed about industry trends.
- It Fuels Resilience:
– Challenges are inevitable in the construction business.
– A strong financial mindset helps you bounce back from setbacks.
– It encourages you to adapt to changing circumstances and find opportunities even in difficult times.
- It Affects Decision-Making:
– Your financial mindset influences your decisions about pricing, contracts, and investments.
– It guides you in choosing financially sound projects and avoiding risky ones.
– You’re more likely to make decisions that lead to long-term financial stability.
- It Shapes Your Business Goals:
– A well-developed financial mindset leads to clear financial goals.
– It helps you define what financial success means for your business.
– You can set realistic targets and create strategies to achieve them.
Cultivating a Positive, Confident Financial Mindset
Now that you understand the significance of a financial mindset, you may be wondering how to develop one that serves your construction business. Here are some tips to get you started:
- Self-Awareness:
– Reflect on your current beliefs and attitudes towards money. Were you told that money was bad or the root of all evil or do you believe that money is neutral?
– Identify any limiting beliefs or negative thought patterns. Do you have thoughts that you won’t be able to understand the financials?
– Acknowledge areas where your financial mindset needs improvement. What if you were to change your mindset and move forward with curiosity towards the financial side of your business?
- Education and Learning:
– Invest in financial education and stay informed about industry trends. There are many ways to invest in your financial education. You can take online classes (like Atlas CFOs All Access training library 😊), attend peer groups and industry sponsored training.
– Seek advice from financial experts and mentors. CFMA offers great resources. Although most of their resources are meant for the in-house CFO/Controller of larger contractors, they have great content.
– Continuous learning can boost your confidence and knowledge. Setting a goal for each year’s learning topics can be a fun way to continue your learning.
- Change your mind:
– Whether you think you can or you think you can’t, you’re right – Henry Ford. Believe and think you can learn the financial side of your business. We have taught hundreds of contractors to read financial data. You can too.
Conclusion
In the world of commercial construction, a strong financial mindset is the foundation of your success. It empowers you to make wise financial decisions, adapt to challenges, and set achievable financial goals. As you cultivate a positive financial mindset, you’ll find that it’s not just about making money; it’s about building a solid financial foundation for the future of your construction business.
Embrace the power of a financial mindset and watch as your construction business thrives, guided by your newfound financial wisdom.
Stay tuned for more insights on our journey towards financial mastery in the construction industry.