Starting a construction business seems like a complicated process, but all it takes is a bit of time and effort. The more complicated part running your company is actually growing it.
If you don’t know how to grow your construction business sustainably, it could end up stalling. There might be somewhat of a stop/start process involved.
You could have multiple projects one day, and only a few the next. At a certain point, this gets stressful. Nobody wants that to happen, but they mightn’t know how to get around this. If you’ve found yourself in this position, you’ll want to get around it. Thankfully, it doesn’t have to be too difficult.
By using ten practical tips to grow your construction business, you make it much easier for yourself. It’s worth diving into them.
How to Grow Your Construction Business
1. Manage Your Costs
Every company comes with its operating costs, and yours will be no different. Construction labour can be the largest of these, but you’ll also need to worry about materials, equipment, and more.
To grow your construction business sustainably, you’ll need to know what your costs are and actually manage them.
While you shouldn’t sacrifice quality to keep costs low, you’ll need to make sure you keep your costs as low as possible. The better you are at managing this, the more you can increase your profit margins.
2. Quality is King
One of the most notable factors you should focus on when running a construction business is the quality of your work. The better this is, the better your company will be long-term. If you develop a reputation for doing low-quality work, fewer and fewer people will hire you.
Avoid that by making sure every project you work on is done to a high standard. You should bring your A-game every time, and you shouldn’t have a problem bringing in new customers in the future. It’s one of the first areas you should work on.
3. Lead Your Team
The better you can team your team, the better your business will be. You’ll likely already know that and could spend a decent amount of time managing your workers. You shouldn’t micro-manage them, however. They’ll already know how to do their jobs, so let them do their work.
Instead, be a leader and show them what needs to be done while giving them your full confidence in their abilities.
Team morale will be much better than it would be if you were over their shoulder constantly. Your business will be much better because of it.
4. Give Great Customer Service
Every business needs to make sure its customers are happy. Making sure the quality of your work is high – as mentioned above – is the first step involved in this.
You’ll need to go beyond this by making sure you treat your customers well from start to finish. Aim to please with every interaction you have with them.
The better you do this, the more likely they are to use you again for future projects. They’ll also be more likely to tell other people about you, which could lead to more business for you. It’ll be more than worth the time and effort you put into it.
5. Be Selective
When you’re trying to grow your construction business, you’d naturally assume that the more projects you have to work on, the better. The logic behind that is understandable, but it mightn’t be the best approach to take. Instead, some projects simply mightn’t be profitable enough for you to work on.
They could be a waste of time and resources, and these could be better spent on projects where you make a better return on investment. The more selective you are with your projects, the better you’ll be in the long-term.
6. Make Smart Decisions
You’ll have to make countless decisions when you’re running your construction business. From who you hire to what projects you take on and even which suppliers you work with, there’ll be plenty of choices to make. Make sure these are as smart as possible to actually grow your business.
Be as informed as possible before making any decisions so you can make sure these are as smart as possible. Look at the situation from all angles and consider how the decision affects your company long-term. Your business will be much better because of it.
7. Play to Your Strengths
Your construction business will have specific strengths. Things that it does better than others. That could be at building patios or renovating exteriors.
No matter what they are, it’s best to lean into them as much as possible. By being known as one of the better companies at a specific area, you can get more projects because of that.
At a minimum, you’ll get more work than if you were known as a decent all-rounder. It lets you specialize in a specific construction area and brand yourself much better. That should bring in more customers looking specifically for that.
8. Change is Good
Trends come and go in the construction industry, and this isn’t exactly a bad thing. What is a bad thing is not being able to keep up with and capitalize on them. You need to be willing to accept change in the market and adapt to it. The better you are at this, the better it’ll be for your business.
Being able to spot these trends coming gives you a better chance of capitalizing on them. By keeping things lean, you can pivot much better and actually take advantage of changes better than your competitors.
Networking can be a great way to find suppliers and opportunities for more projects, but few business owners actually put enough effort into this.
Join industry associations and take part in any events they throw. It’ll give you the chance to speak with other professionals and find potential opportunities.
While you mightn’t get them straight away, it gives you a chance to develop relationships with other professionals. In time, these relationships could prove useful. Whether it’s finding a better supplier and getting better deals or getting new projects, it’s more than worth the effort.
10. Be Proactive
The more projects your construction company has, the better it is for your bottom line, especially when you’re selective with them. Don’t expect them to just fall into your lap, however. You’ll need to be proactive and actually go out and get these projects. Take the time to go out and look for them.
Networking, as mentioned above, can be a great way of doing this. It’s far from the only way you can do this, though. Reach out to architects and similar professionals to see if they have any projects you’d be perfect for. The more effort you put into this, the better. You’ll have more projects before you know it.
If you don’t know how to grow your construction business sustainably, it could seem like it’d take a lot of time and effort. It might even seem overwhelmingly complicated.
While there’ll be some work involved, it doesn’t have to be as difficult as you could think. All you’ll need to do is put the effort into the right areas.
With a few tips and tricks, you shouldn’t have to worry about this. Playing to your strengths, ensuring high quality work, managing your costs, and similar tips to grow your construction company will all help with this. In time, you’ll see it grow better and more sustainably than you’d think.