The Value of Peer Groups for Commercial General Contractors
During my time as a general contractor, I had the privilege of participating in a peer group for several years. The group included three other non-competing contractors from across the United States. We met twice a year, each time in one of our home cities, and rotated hosting duties. These gatherings quickly became invaluable, providing insights and support that transformed my business. Here, Iʼll share three major ways peer group involvement positively impacted my companyʼs success.
Open Discussion on Every Topic That Matters
Each meeting agenda was crafted by the group, with topics selected based on the current needs and interests of each member. This collaborative approach ensured that every session was packed with relevant discussions. We explored everything from business development strategies to recruiting and retention techniques, building strong management teams, cultivating company culture, evaluating software and technology, and more. By exchanging marketing materials and innovative practices, we were able to refresh our approaches to common challenges. Having a diverse set of perspectives on leadership and operational issues gave me access to a well of strategies that I hadnʼt considered before.
Financial Benchmarking: A Data-Driven Mirror
One of the most impactful aspects of our peer group was the ability to benchmark our financials against each otherʼs. Reviewing financial statements side-by-side allowed us to see how we stacked up in terms of overhead, project performance, and asset utilization. With this data-driven insight, I was able to pinpoint both the strengths and weaknesses in my financials, identifying areas where I could make adjustments for optimal results. Financial benchmarking within a peer group provides a rare, unfiltered perspective on the health of your business, helping you make informed, strategic improvements.
Unmatched Support and Lasting Friendships
The friendships I formed within the peer group went beyond mere business bonds. Imagine having a trusted team of advisors who know both you and your business well, always available for advice when you face tough decisions or need feedback on a new idea. This network became a lifeline during challenging times—whether I was navigating a difficult project, restructuring compensation, or handling a leadership issue. The value of this support cannot be overstated; itʼs like having a safety net made up of people who genuinely understand your world and are invested in your success.
Why Peer Groups Are Essential For Success
As Reid Hoffman, the founder of LinkedIn, famously said, “No matter how brilliant your mind or strategy, if youʼre playing a solo game, youʼll always lose out to a team.ˮ This sentiment is especially true in the construction industry. Attempting to navigate your strategy or tackle critical business decisions in isolation can limit your potential. Peer groups offer a unique blend of external insight and shared experience that helps propel businesses forward, creating a collaborative environment where great ideas can thrive.
““No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team.””