Are you trying to grow your construction business and perhaps expand into new territories but don’t know how? Growing your construction business requires meticulous planning and sufficient resources to scale your operations strategically.
You may have hit a stumbling block in your growth journey and are overwhelmed with the increasing workload. Are you taking on more jobs than you can handle? If the answer is yes, it is time first to identify what is hindering you from successfully growing your business and then determine and seize growth opportunities.
Below are nine tips for growing your construction business.
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Identify new markets and opportunities.
Growing a business is an intentional process. First, create a business plan based on new markets and opportunities you want to explore. Then, consider your company values, the expected growth in net profit margins, and the human resources needed to achieve these goals.
What new services or offerings can you add to your portfolio? What other opportunities can you explore that align with your business values and goals? The first step to growing your construction business is getting out of your comfort zone and thinking outside the box.
Build a strong brand and reputation.
Your construction business must have a strong brand identity that tells your story. Your customers can see your logo, design, and color. Consider the image you want people to associate your construction business with.
Your brand identity and reputation must highlight your best attributes as a business. Building a solid brand is deliberately telling the story you want to tell. Ensure you articulate a relatable, engaging, good, and triumphant story.
A strong brand and reputation are essential to a growing construction business because it builds trust and credibility. Be accessible and consistent with high-quality services.
A strong brand and reputation allow you to tap into the power of psychology and capture the attention of your prospective clients. It also gives you the competitive advantage you need to scale your business.
Expanding services and offerings
The construction is a highly fragmented and complex ecosystem that has seen a slow increase in productivity over the past 50 years. Despite its importance to the global economy, construction remains at the bottom of the list for digitization, with typical profit margins of 2-7% over the past five years.
Expanding services and offerings is the second most crucial business objective behind reducing operational costs. Approximately 1200 construction and real estate startups were established between 2010 and 2017, with over $19.4 billion in funding.
The industry needs a radical shift towards productized workflows. So as you think about growing your business, consider expanding your services while ensuring service excellence.
Expanding services and offerings can drive better margins, enhance revenue, achieve predictable income streams, improve customer satisfaction, and provide sustainable business growth. This can be achieved by establishing an expanded services strategy, leveraging technology and data insights, and addressing talent.
Develop a strong team and network.
Hire the most dependable and skilled employees you can afford. Reliable and experienced employees are hard to find and retain, but they will be your most valuable asset. Good employees are the foundation of a successful business. Put together a strong team and treat them like you value them.
Once your team is in place, be active in the local chapter of your trade to build a strong network. Giving back to the community is critical as a networking tool. You will derive motivation and opportunities from the network you build. Make your presence known in conferences, tournaments, luncheons, fundraising events, and other business meetings.
Improve efficiency and productivity.
Quality is everything in construction. Develop a system that promotes efficiency and productivity like no other. Building an efficient and productive operation is the key to ensuring the quality of your work is unbeatable. You must create a reputation for being your trade's most efficient and effective business.
Leverage technology and innovation.
Leverage technology and innovation to stay ahead of your competitors. Invest in the latest technology to boost operational efficiency, reduce the turnaround time, and minimize waste. Encourage innovation among your team to promote creativity and unique ideas.
Form strategic partnerships and collaborations.
Your success hinges on your ability to form and maintain strategic partnerships and collaborations within the industry. Be intentional about partnering and collaborating with other businesses. Keep your vendors and suppliers just as happy as you want your customers to be. These relationships will be the bedrock of invaluable word-of-mouth marketing for your business.
Manage investments and finances effectively.
Develop a solid accounting and cashflow management process. Keep track of your cash flow and understand your business costs. A reliable accounting process is critical to securing financing for projects.
Manage your finances effectively to avoid delays due to cash flow issues. Know when to use credit and understand your lien rights. Spend less time waiting to get paid by protecting said lien rights.
Maintain customer relationships and satisfaction.
Maintaining excellent customer service is a no-brainer for any business, but it is even more critical when growing a business. Customer satisfaction should be a top priority across the company. Request feedback from all your customers and improve services as needed.
Satisfied customers will promote your business within their circle and provide you with more business opportunities to increase revenue. Similarly, dissatisfied customers will ruin your reputation. Remember that word of mouth is compelling in construction, and prioritize your customers’ needs.
Build and maintain healthy relationships with your customers. As a business owner, building trust only sometimes means doing what the customer wants. So set realistic expectations from the onset and deliver on your promises. Be consistent and accessible, and your customer relationships will thrive.
Growing a construction business can be a daunting process. Still, with the right tools and know-how, business owners can create an advantage over competitors and remain the number one choice for customers. Relationships are as meaningful in business as quality and processes.