Growing Your Construction Business
How to grow your construction business
Wouldn’t it be great if growing your construction company was as easy as swinging a hammer and knocking some nails into a piece of wood?
And while hammering nails and taking down or putting up walls are integral parts of the construction business, it takes more than that to establish and maintain a successful business in this highly competitive industry. With that in mind, there are plenty of things that you can do – everything from focusing in on what’s important on the job site to taking care of business at the office — to ensure that your bottom line stays in the green while you do what you were born to do.
By keeping these tips – the most important of which may be investing whatever you have into your company, its image and marketing to ensure you’ve got job sites to go to – you’ll gain both new and repeat customers that will spread the word about your business while growing your market share and bottom line.
Below are some ways you can grow your construction business:
1)Take a good look at your company as a whole: Before you can expand and grow your business, take an honest look at how it is operating. Are you currently making money? Examine your employee turnover, morale and the number of repeat customers you are getting. Are you asking for feedback from your customers? What are they saying to you about your quality of work?
Remember that if things aren’t going well on the inside of your business, they won’t be going well on the outside, either. If necessary, hire an expert to help you develop a plan to fix what’s wrong.
2)Keep the money rolling in by having some on hand: You can’t take on jobs that will generate cash for your company if you don’t have the money to pay for the material and labor necessary to get the job done. Talk to financial institutions about establishing a line of credit, overdraft protection or a loan to expand your business.
Monitor your overhead expenses carefully and carefully calculate the cost of a job before accepting it. If a job doesn’t make sense for your bottom line, turn it down in a graciously.
3) Strong customer service teams mean happy clients: A strong customer service team that is dedicated to exceeding customer expectations helps to generate repeat business and free word-of-mouth advertising, all of which can help expand your business. Have folks on your staff who are dedicated to keeping your customers happy and responding to any questions or concerns that might arise.
4) Market, market, market: Nope, we’re not talking about going grocery shopping. We’re talking about growing your construction business by paying attention to branding your company and marketing it in order to keep it at the forefront of the public’s mind.
Establish a Facebook page; create and maintain a professional website; paint your trucks with your company’s logo; get and pass out business cards; email and print postcards; and begin a customer referral program to generate both leads and business. Network with fellow business owners both inside and outside the construction industry,
5) Know and understand what it costs to do business in your market: Undertake a market analysis to ensure you are charging the right price for your work at the time you’ll be doing it. Labor and material costs are usually on the upswing, so keep that in mind when providing an estimate for work that might be taking place weeks or months down the road.
In addition, many customers will automatically discount the lowest construction bid they receive because they associate it with sloppy work and cheap materials. And, if you come in with the highest bid, you may be pricing yourself out of a job. Proper pricing is key to a profitable business.
6) Do quality work: Focus on the details of every job. Clearly explain to your employees what the scope of the project is and the time frame in which the work must be completed.
Keep your customers fully informed about the time line of their project and any problems that may arise so their aren’t any surprises or dashed expectations when challenges occur – and challenges will occur!
7) You are building and renovating more than houses: To ensure a successful and profitable construction business, you’ve got to build a great team of motivated employees as well. Hire experienced workers and clearly explain to them your company’s mission and customer service goals. Provide your employees with on-the-job training to empower and motivate them fir success. Have an open door policy where both management and employees can discuss any issues that might arise.
Remember, a happy fulfilled employee will help you grow your business by doing great work. An unhappy employee won’t.
8) Maintain your safety record: It’ is your responsibility to ensure the safety of your employees while they’re on the job, not your client’s. Hold mandatory safety meeting on every job, every day. Provide safety training sessions and thoroughly discuss potential hazards before every job. Keeping your employees and equipment safe while on the job only adds to your bottom line.
While putting these steps into action is not a guarantee of success, if you use them it is a certainty that your construction business will grow.