By now you probably know how important it is the keep a good construction company revenue. Without it, your business could face a dire future. But if it’s strong, then you have an amazing range of possibilities ahead of you.
But a good construction company revenue is not something that just happens, you need to constantly work on it so that it starts to steadily increase and, when it’s good, for it not to go back down.
What is a construction company’s revenue?
Revenue is simply the total income your construction company brings in. In order to turn a profit and expand your business, you need to bring in enough revenue to offset your expenses.
Do you know the difference between revenue and profit ?
Revenue is your gross income, while profit is the remaining income after expenses have been subtracted.
Increasing your construction company revenue is the single most important thing you can do to ensure your business’ success and future growth.
It can be difficult for small businesses to find ways to increase revenue. Particularly in a competitive field like construction, you have to find ways to make your company stand out against your competition to attract new clients.
Fortunately, increasing your revenue is possible.
By utilizing a few effective methods, you can efficiently boost your sales and grow your client base. Let’s take a look at a few strategies you can use to increase your construction company revenue.
5 Ways to Increase Your Construction Company Revenue
Increasing your revenue comes down to growing your client base and increasing the rate at which your customers return to hire you.
Here are five ways you can start increasing your construction company revenue today.
1. Expand Your Market
One of the best ways to generate new clients is to expand your market. This will give you a larger pool of clients that you can, hopefully, turn into repeat customers.
There are several effective ways to do this.
First, you can start by offering more services to your clients. Adding services that complement your existing ones can help you attract new customers and maintain current clients.
For example, if your construction company specializes in commercial construction projects, you can consider expanding into residential construction. You likely already have the tools and equipment to do this, so you wouldn’t have to add any new expenses to transition into this new niche.
Next, you can start to serve a larger geographic region. Many construction companies limit their services to their local area. By expanding to areas surrounding your primary city of operation, you can potentially attract a larger number of customers.
2. Adjust Your Pricing
Pricing is one of the most important factors for customers who are considering purchasing your services.
This doesn’t necessarily mean you should lower your prices. It’s entirely possible that you could increase your revenue by raising your prices without losing customers. While some clients see low prices as a great deal, others may assume it means your construction services are low quality.
It’s important to slowly roll out new pricing strategies in order to gauge your customers’ reactions to your new prices. You should always consider your prices temporary. Never be afraid to adjust your pricing based on the current market.
Alternatively, you can offer special discounts to your customers. This could include customer loyalty discounts to encourage repeat business. It could also include seasonal discounts in which you can offer lower prices during slow seasons.
To maximize your potential revenue, it’s important to consistently reevaluate your pricing model to adapt to the current market and your clients’ needs.
3. Focus on Marketing
Marketing is important for any business, no matter what industry or location you are in.
For your construction company, you should primarily be marketing to other businesses and business owners — meaning, you might not want to focus your efforts on social media marketing.
Instead, you should focus on search engine optimization (SEO) and pay-per-click advertising (PPC).
Search engine optimization is the practice of increasing your website traffic through search engine results. So, for example, if you run a construction company in Pasadena, your website needs to appear when someone searches “construction companies in Pasadena” on Google. Not only can this grow your brand awareness, but it can also help establish your company as reliable.
PPC is a digital marketing practice in which you can advertise your company through search engines and social media platforms with paid advertisements.
Both of these methods can be great ways to increase your customer base and boost sales at little cost.
4. Increase Productivity
If you are struggling to attract new customers or keep your current customers, it might be time to reevaluate your business practices.
In the construction industry, customer satisfaction depends on your ability to complete projects quickly without sacrificing quality.
To effectively boost productivity, you need to thoroughly analyze your current practices and procedures, and determine where you can streamline your operations. Talk to your managers and employees to ask for feedback.
The employees that work for you every day will be able to help you identify where you can increase efficiency and productivity.
By establishing new, more efficient procedures, you can increase customer satisfaction, which can lead to repeat business and referrals — both of which will boost your revenue.
5. Take Out a Business Loan
To finance new business initiatives, you’ll likely need to rely on a business loan to give you the financing you need.
Small business loans are a great resource for construction company owners who want to reinvest in their business in order to increase revenue.
Business loans can be used to:
- Purchase new tools and equipment
- Hire more employees
- Invest in marketing
- Expand to new locations
- Purchase real estate
- And more
Without financing, it can be difficult to find the capital you need to pursue new revenue-generating ideas.
With small business loans, you can get the funding you need to invest in your business and grow your construction company.
Start Building Your Success Today
Revenue is one of the single most important factors for any business. It determines your success as a company.
Finding ways to increase your construction company revenue can be difficult, but is very possible.
By utilizing the strategies described in this article, you can increase customer satisfaction, attract new customers, and boost sales — all of which contribute to revenue growth.
Camino Financial is dedicated to helping construction companies find the information, resources, and advice they need to grow and prosper. We do this by providing helpful tips and financing solutions to construction companies around the company.