8 tips for growing your construction business
Building or expanding any business is a challenge. The business of construction business comes with its own unique challenges and opportunities. The US Census reports that the United States has the second largest construction market worldwide, with annual revenue of $1.731 trillion.
Whether you’re forming a new venture or expanding into new specialties or locations, your success will depend on proper planning, organization and the right people around you.
Here are tips and ways for you to successfully grow your construction business
1. Ensure your business runs like a well-oiled machine.
Before doing any expansion, you’ll want to access your organization to make sure everything works the way it should.
Pay attention to key areas and ask some questions:
- Are customers hiring you again for other projects?
- Are your business finances in order?
- Do you get frequent customer referrals?
- What kind of customer feedback have you received?
- Do you retain employees or is there a lot of turnovers?
- What are the skills and personalities of the people already on your team?
- Do the people on your team need a lot of supervision? Do you trust them to get the job done right?
Don’t just rely on your own assessment, either. Talk to your managers and other key personnel to get their feedback, too. They may be able to provide critical information and insight on areas where improvement is necessary. If you have a flawed organization or lack the personnel to take on the extra workload, an expansion will expose the cracks even more.
2. Construct the best team possible.
Any business is only as good as the people who work there. This goes double for the construction industry. The goal is to build a team that is skilled and dependable. Once you have a great team, you’ll to want to keep it together Acknowledging and promoting employees for their performance is a great way to keep morale and motivation high.
You want the best team in place. If you lack people with specific skills or training, fill in the gaps with workers who will help improve your reputation, output, and success.
3. Refine your own management skills.
Your management style will go a long way in building success. A good manger knows when to lead and when to allow employees to do their jobs. If you micromanage, your team will believe you don’t trust them and that can quickly turn into frustration and resentment. It’s a good way to lose personnel.
4. Be ready to invest more in your business.
You can’t cut corners on a job, and you can’t do it with your business. There’s no getting around the fact that you sometimes have to spend money to make money. Consider investing in new equipment and technology when possible, and don’t hesitate to spend on employee training and development programs.
5. Consider expanding or developing a niche.
A niche is a specific area of interest within a broader category. In this industry, a niche area might be green or LEED construction or historic building renovations. Establishing your company as experts in one area will give you a way to stand out from the competition, rather than being a general construction company.
6. Secure good financing.
Depending on the size of your operation, you may not have the capital to support an expansion. Even a large, well-established company might not have the cash available to pay for new equipment, upgrades in technology, new employees, etc. Look into ways to secure financing with a line of credit, overdraft protection, bonding or business loans. You also want to put spending control measures in place and have a system for tracking expenditures so you don’t get into trouble. You’ll need to develop a business plan in order to secure financing, and this should include: financial statements, company organization chart, list of current/past jobs, tax returns, inventory of equipment, a portfolio of completed jobs, and references.
7. Refine your marketing plan.
Many companies overlook the importance of investing money in marketing, but this is not an area where you should cut corners, either. If you want to attract new customers, you must embrace marketing. Make the most of online and social media marketing as well. Have pages on the major social networks like Facebook and Instagram. Not only is it a way to connect to people, these networks also allow you to do paid advertising that targets your audience, including areas of interest, geographic location, income, age, occupation, and more.
You should also make sure you have a professional website that is optimized for mobile users. Ensure your website is optimized for keywords on search engines like Google. Think about maintaining a blog on your website. Regular content triggers search engines and drives traffic to your website. A blog can also work to establish your company as the expert in a particular area.
8. Be a networking guru.
Marketing is one key element of attracting new business. Another element is word of mouth or networking. The old adage about “who you know” is still very much alive today. Make contacts by joining industry trade associations, local industry chapters, and by attending conferences and trade shows. Build good relationships with vendors and suppliers by having frequent, face-to-face and/or phone interactions.
Building or expanding your construction business is a challenge, but one you can meet if you follow these 8 suggestions. No Boundaries Advisors has been helping businesses grow and thrive for over 25 years. Contact us today to find out how our expert staff can help you meet your financial goals as you seek to expand.