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The 60-30-10 Rule for Custom Home Builders

Written by Will Blunt | Nov 12, 2024 4:00:09 AM

Time is your most valuable asset. Every minute you spend in the right areas of your building company directly impacts profitability, growth, and the ease with which you can scale. 

But when you’re juggling a million tasks, it’s easy to feel like your day is running you, rather than the other way around. 

That’s where the 60-30-10 rule comes in—a focused way to structure your time so that every hour brings you closer to a streamlined, scalable building company.

60%: External Engagement and Expansion

Real growth starts outside your office walls.

Allocate 60% of your time to high-impact activities that grow your building company by expanding your network and market reach. Here’s where to focus:

  • Networking: Devote regular time to building relationships with architects, real estate agents, and designers who can refer you high-quality leads. These connections are where many of your next projects will come from.
  • Marketing Activity: Invest in home builder marketing to build a steady pipeline of high-quality leads. Focus on activities that not only generate visibility but also attract the right clients who value your services. Effective marketing positions your company to stay top of mind for clients and reinforces your unique value.
  • Client Meetings: Meet with potential clients in person to explain your process and the benefits of working with you. Clients choose builders who communicate well and have a clear value proposition.

These are critical factors that drive growth and set you apart from other builders.

30%: Strategic Operations and Decision-Making

Your most important work is leading the company’s direction.

Dedicate 30% of your time to making high-level decisions and setting a clear vision for your building company’s future. This strategic work ensures every effort drives profitable growth and builds the foundation for scalability.

  • Strategic Planning: Spend time charting the long-term direction of your building company with a construction business plan. Decide on your focus markets, ideal client profile, and growth avenues—whether that’s expanding service areas, taking on larger projects, or enhancing service offerings. This clarity ensures your efforts stay aligned with your big-picture goals.
  • Budgeting: Allocate resources wisely by setting clear budgets that align with your company’s priorities and goals. Evaluate which projects and expenses support your growth strategy and track expenditures closely to keep your financials on target.
  • Cashflow Management: Keep a clear, proactive view of your cashflow to avoid costly interruptions. Regularly review payment schedules, invoicing, and collections to ensure you have the liquidity to take on new projects and invest confidently.
  • Process Documentation: As you grow, ensure that every core process—whether for client acquisition, project execution, or financial management—is documented and standardised. This documentation will support team training, maintain consistency, and allow you to eventually step back without compromising on quality or efficiency.
  • Supplier Negotiations: Cement relationships with reliable suppliers who can provide consistent quality and competitive pricing. This isn’t just about getting better prices—it’s about ensuring a steady supply chain for high-quality materials.
  • Competitive Analysis: Identify which builders are winning more projects, why they’re winning, and where you can outperform them. This might mean researching pricing, service offerings, or client feedback.
  • Market Trends: Know what’s changing in both the local and national building markets. From sustainable materials to tech-driven solutions, understanding construction industry trends will keep your company relevant and ready to adapt.

This strategic time empowers you to steer your building company with precision, laying the groundwork for sustainable growth and operational excellence.

10%: Team Development and Prioritisation

Equip your team to operate at a high standard and move together in the same direction.

Allocate 10% of your time to guiding your team and ensuring they’re aligned with the company’s goals. But don’t neglect your own learning and development, you need to lead by example. 

High-performing teams don’t just happen; they’re developed with clear priorities and consistent training, and it all starts with you.

  • Self-Development: Dedicate time each week to improving your own skills—whether through reading, industry coaching, or strategic workshops. Learning new approaches or working with a coach not only expands your knowledge but also gives you tools to enhance decision-making, manage challenges, and create a more resilient company.
  • High-Level Priorities: Ensure the entire team understands the company’s strategic direction and how their roles contribute to these broader goals. From project focus areas to client service standards, alignment on high-level priorities drives cohesive action.
  • Talent & Process Adherence: Make sure every team member is equipped with both the skills and the resources they need. Process documentation plays a critical role here, providing clear guidelines and standards so your team can work autonomously, meeting the same high standards across every project.

A well-trained, strategically aligned team enables you to focus on growth, knowing that day-to-day operations are in capable hands.

Implementing the 60-30-10 Framework

Applying the 60-30-10 rule isn’t just a productivity tip; it’s a method for leading a successful building company without getting bogged down by day-to-day tasks. 

Structure your time as outlined, and you’ll be positioned to handle more clients, higher-quality projects, and a motivated, capable team—all while reducing stress and maintaining control over your company’s direction.

The 60-30-10 rule isn’t about doing more—it’s about doing the right things. Focus on what matters most, and watch your company grow.