Executive opinion Serious business


Having been around the country at regional conferences, ECA group chief executive offi cer Steve Bratt highlights some of the key issues – and opportunities – for members


I


have just fi nished the marathon tour of attending and presenting at the ECA regional conferences. It is a huge commitment and takes a big slice out of the calendar. However, having just done it, apart from being enjoyable,


it has reinforced just how valuable the ability to network with other businesses actually is – particularly in diffi cult trading times like the ones we are currently facing. The presentations at the conferences were on a vast


array of technical and business subjects. I would hope that anyone attending would go away with at least two or three things that they could take into their business to improve it. But it is not just the presentations. These events give the opportunity for contracting businesses to talk to, and learn from, each other. I heard conversations about where best to buy materials from, how to get paid, labour loaning arrangements, and even about sharing contacts to open up opportunities overseas – and these were just a few of the subjects discussed.


New opportunities My presentation started with some facts about how construction-related contractors were getting into fi nancial diffi culty by trading at suicidally low margins, and the temptation to do so in the current climate. However, we then looked at some of the emerging opportunities that not only present new work, but also work with better- than-average margins – and, in some cases, favourable payment arrangements. What was particularly encouraging was the number of


people attending the conferences that were able to say that they were already taking advantage of these new opportunities and that, in many cases, the margins were indeed better. What was even more encouraging was the number of people who, when asked how business was going, were able to say that they were having a good, or even in a few cases, record year. One of the opportunities emerging is the energy solution


provider. With energy prices escalating at the rate they are, and with the various carbon reduction initiatives – many of which are effectively taxes – it is clear that


About the author


Steve Bratt Steve Bratt was appointed group chief executive offi cer of the ECA in October 2010. He joined the ECA as chief operating offi cer in 2007, and became deputy CEO in February 2010.


clients need someone to advise them on how to reduce operating costs. In addition, the new smart technologies and advancements in control systems are creating the need for businesses that can advise on how to bring all of this together for the benefi t of the client.


If clients are looking for energy solutions providers, who better to deliver than someone they trust?


Successful outlook We also talked about how successful businesses know their business well and how, in times like these, it is wise to take a fresh look. This was reinforced by a number of people who said that they had reduced their turnover signifi cantly, but had actually maintained or even increased profi tability, by doing things differently or targeting different work. Really getting to know their costs and realistically pricing jobs was a key factor. Back to the earlier point – if suicidal margins kill businesses, you can’t afford to go there by accident through poor costing. Of particular importance is the need


to know which customers are actually profi table. Inevitably, as in life generally,


Pareto’s Principle will apply to many businesses, meaning that 80 per cent of profi t will come from 20 per cent of customers – so know who they are! You might also want to fi nd more customers like them and, of course, you can decide what to do about the other 80 per cent. What also became clear is that the 20 per cent of


customers generating the most profi t are repeat customers, and they buy again because of trust. They trust the business both in terms of its integrity and its competence. Therefore, if clients are looking for energy solutions providers, they will have to take a leap of faith that the provider will deliver – and who better to do that than someone they trust! What also became clear is that successful businesses


know what they are getting into from the outset, and they do everything they can to make sure they get paid. I have said it before, and I’m sure I can’t say it too often:


the ECA is here to help your business succeed, so please use the support services available to you for things like contract review, credit checking, understanding payment arrangements and chasing debt.


January 2012 ECA Today 17


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