There’s no doubt that the construction industry has been very affected by the COVID-19 pandemic on several fronts. So, if you are a business owner of a company in this industry, it is vital that you know tips on how to grow a construction business, once we overcome this pandemic.
Construction during coronavirus has been really affected. If you own a construction business, you know how important it is to prepare to reopen. [Keep reading…]
Your firm though may need to streamline its operations to play the construction game from a position of strength. Your construction business will have to learn to make the right moves, stay ahead of the competition and make it big.
But don’t worry. Here are six key steps that will help grow your business and establish a more customer-preferred presence in the market.
1. Fine-tune Your Organization
You will have to do a company self-critique, a serious, comprehensive assessment of your current construction business as a whole even before working out strategies. Have some honest talks with your key managers, executives, and finance officers. Be positive with whatever feedback you get. It’ll allow you to get a true picture of your business’ health and guide you in making more prudent, smarter decisions moving forward.
It will help to ask yourself… Is my company financially stable? Do we have many satisfied clients who keep coming back for other construction projects and needs? Do we get referrals from them and other sources? What’s the rate of our company’s employee turnover?
Keep in mind that if there is something wrong or amiss in your organization, all the marketing efforts could go down the drain. In a similar vein, if your clients aren’t happy with your work, putting your team in top shape is the first step to expand your construction business.
As you go about determining what’s the real internal situation of your company, rate the skills and personalities involved in the critical aspects of your business. Make sure only the individuals with the right set of skills and background make up your frontline team. Bring in experts and professionals to help make the right moves and prevent costly mistakes.
2. Find More Funding for Your Operations
Growing businesses will generally need capital to get its operations running fluidly. Unfortunately, not too many contractors have the financial muscle to achieve this constantly, much less, back up their plans for expansion. In fact, for a lot of construction businesses sustaining a positive cash flow is usually a struggle, particularly when clients and customers are delayed in their payments.
Beyond these, explore ways of accessing a line of credit, overdraft protection or loans from banks and other financial sources, such as Camino Financial loans. We are one of the most respected business loan providers in the construction industry, having provided various loans, funding and professional assistance to many of today’s known real estate developers.
3. Manage Your Finances Well
Simply put, spend your funds with care and prudence. Most contractors and construction business owners know that to thrive and grow continuously and steadily, they need to have a constantly good cash flow. In truth though, many companies fall along the way because they’re unable to cover the overhead costs they’ve already committed to.
So, it will be a good move to regularly monitor your overhead expenses and to be aware of additional costs that usually come with extra business before actually accepting these new projects.
What to consider when preparing proposals and bids
In working out construction project proposals or contracts, your total price should factor in all the costs to be incurred, making sure the value of materials and labor which sometimes appreciate are taken into consideration. In any case, make sure the costs of completing the construction projects don’t go up as to eat into your projected profits.
When preparing bids for important construction projects, price your construction company well. Contrary to popular belief, those who get contracts regularly win not because of their lower prices, but because of their good craftsmanship and their reputations for using materials of superior quality.
4. Never Trade Off the Quality of Your Work
Particularly in the construction business, cutting corners to reduce costs can sometimes cause catastrophic consequences, so tread very carefully when you’re thinking of doing something that would sacrifice the quality of your work.
Your company’s reputation for top-notch service goes hand in hand with excellent, highly polished construction work. One without the other sucks.
Remember your company’s reputation is only as good as the last project. Make sure your brand of top quality remains in all your completed construction work.
5. Build and Establish a Reputation for Outstanding Client Service
If your construction business gets to be closely associated with an exceptionally strong consumer service, your company will grow since you will most likely have a long list of satisfied customers serving as your endorsers, as they refer new prospects to your office doorsteps.
As all communications gurus know, word-of-mouth is the most effective, most credible type of advertising for any brand, company or product. It’s no different in the construction market.
Essentially, the key lies in going beyond customers’ expectations. In other words, your frontline and below the line construction teams should work not only in satisfying your clients but in impressing them and making them feel glad for having made the right decision to work and stay with your construction firm.
Retaining clients who’ll keep coming back to your construction company means less money spent on marketing and advertising, looking for new prospects and leads. With a solid reputation for excellent customer service, referrals will naturally come; referrals, after all, means “great reviews!”
So, when they do come, again exceed their expectations. Do something that’ll bring out the “Wow!” from clients mouths.
6. Make Effective Marketing a Top Priority
To get your construction business moving forward after COVID-19, you will need to invest adequate funds in branding your company and in effectively marketing your products or services. You should make it a point to have your business in Facebook, LinkedIn, Yelp, and Yellowpages.com. Also, it is key that you create a professionally interesting, easy to navigate website.
Learn here how Komark Concrete developed their website in 5 easy steps and follow their example.
Develop a unique, attractive, eye-catching icon or logo to represent and identify your company easily. Add on a short but relevant slogan that’ll mean something to members of the construction circles. You can create something like Nike’s “Just do it!”; in your case, it could be something like “We’re a step ahead!” This communicates your construction business is a leader. Get this consistently on all of your communications materials like posters, ads streamers, billboards, t-shirts, and letterheads.
Infuse this as well in the internet platforms where your company or brand has a presence. Know that today, online marketing has become one of the more important elements of the marketing mix and putting in some great effort behind it should redound to more client leads and the spreading of word of mouth “ads” from your satisfied clients. This makes for one creative way of growing your construction business.
You are not alone, Camino Financial is here to help
As construction industry re-opens, you must take inventory of where your business is now, what it has coming up and what additional measures, if any, you’ll need to take once you’re allowed to resume operations.
If you need financial help, now is the best time to seek it. Consider a business loan from Camino Financial. Apply for a business loan today: submitting your application will only take you minutes and won’t affect your credit.
Don’t miss other resources we provide for small businesses growth and help prepare yourself for the uncertain times ahead.