If today you’re still vacillating on whether or not it’s the right time to expand and grow your construction business, know that there’s never been a better time. Know that worldwide, the United States has become the 2nd largest construction market with a growth prospect that is immense. Know that as per the U.S. Census Bureau the construction industry’s annual revenue is running at a staggering one point seven hundred thirty-one trillion dollars ($1.731 trillion). No doubt the demand for construction work, services and materials are on the upswing and your construction company can seize the opportunity to grab a slice of this giant pie. Your firm though may need to expand and streamline its operations to play the construction game from a position of strength. Precisely because the market is swelling, competition has become even keener, fiercer. Your construction business will have to learn to make the right moves, stay ahead of the competition and make it big.
Here are 6 key steps that will help grow your business and establish a more customer-preferred presence in the market
1. Fine-tune your organization
Of course, as you well know, business expansion is serious business. 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 for your expansion. 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 if you have to, 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. To mitigate the situation, you could set up a system that will control and manage your expenses better. One place to start is by controlling and reducing your production costs and your labor costs.
Beyond these, explore ways of accessing a line of credit, overdraft protection or loans from banks and other financial sources. If you haven’t as yet heard of Camino Financial loans, it’s probably about time you did. It’s 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. They’re no strangers to contractors and the construction business. In fact, they have developed what is now beginning to be widely known as the Growth Evaluation. A quick and easy-to-take quiz, specially designed to assess your construction company’s facets generally known as the five pillars of growth: Pricing and Costs, People, Marketing, Technology, and Business Funding. With this evaluating device, they’re able to help contractors and construction firms unravel their growth potential making for a clearer perspective to aid in sound decision-making.
3. Manage your finances well
Simply put, spend your funds with care and prudence. Most contractors and construction business owners know that for such business to not only thrive but grow continuously and steadily, they will need to have a constantly good cash flow. In truth though, many companies of the same nature 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 of your completed construction work.
5. Build and establish a reputation for outstanding client service
When your construction business gets to be closely associated with an exceptionally strong consumer service, your company will grow faster 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. At trade shows and conventions, as contractors and developers talk shop and your company gets to be mentioned in glowing terms, be glad. You’re doing something right.
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, taking big leaps towards healthy, expansive growth, 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.
In summary, if you’re angling for healthy growth and expansion of your business, you should focus on these 6 key steps. Along with putting in precision on your construction project proposals, securing sufficient capital for your operations, treating customers with impressive out-of-the-box kind of superb service and backed up by some sharp marketing … your company should well be on the road to a bigger and better construction business.
If you are new in the construction business, learn here everything you need to become a contractor in the US.
And if you are ready to take the next step to grow your construction business, consider a business loan from Camino Financial. Apply for a business loan today: submitting this application will only take you minutes and won’t affect your credit.