Do you want to grow your construction business? As a budding entrepreneur, the answer is likely ‘yes.’ While that’s pretty obvious, what isn’t so obvious is how you should go about it. Growing your company can be much more complicated than you could think, even when compared to starting your business.
It’s far from impossible, though. Once you know how to grow your construction business, things will go much faster than you’d think. All you might have to do is focus on the right areas. Once you do, you should see:
- More customers
- Increased revenues
- Greater profits
- An expanded business
There’s no reason not to put effort into it. Ten top tips can prove fruitful with this, making them worth looking through.
How To Grow Your Construction Business: 10 Top Tips
1. Get The Word Out
If nobody knows about your construction business, nobody’ll consider it for their projects. Get the word out about your company as much as possible, taking the time to highlight why it’s a great choice for any project. The more time and effort you put into this marketing, the more it should pay off.
Word-of-mouth marketing is your best friend with this, so make sure you leave a great impression on existing and future clients. They’ll be more likely to advocate for you in the future, which leads to more work and increased profits. While this takes a little time to perfect, the results alone make it worthwhile.
2. Be Proactive
When you’re figuring out how to grow your construction business, you’ll need to be as proactive as possible. Don’t just wait for more work to fall into your lap. Go out and actually find it. Advocate for your company and why it’s the best option for your clients. The more you do this, the more projects you should get.
Don’t just do this when you don’t have any projects on the table. Keep reaching out to business owners, architects, and similar professionals so you have a constant pipeline of new work on the horizon. The more effort you put into this, the more it should pay off. It should ensure a sustainable project pipeline and consistent revenues.
3. Invest In Your Business
Before you can grow your construction business, you’ll have to actually invest in it. The right tools and equipment can be crucial for this. From forklifts to construction drones, there’s quite a lot included in this. While these could be costly to get – or even lease – they’re a vital part of being able to do your job properly.
Take the time to figure out exactly what you need, and actually get it. That doesn’t just apply to the tools and equipment you should have. Marketing, employee training, and similar areas should all be part of this. Some of this will be an upfront cost, but you’ll also have ongoing expenses, too.
By being smart with where you invest and when, you can expand your business better than you’d expect.
4. Make Smart Decisions
You’ll have to make countless decisions for your business, with it often feeling like it’s a not-stop occurrence. Make sure the decisions you make are as smart as possible and actually work for your company. Consider the choice from all angles before you decide on anything.
While something might seem simple, it could have more of an impact on your business than you might’ve thought. You wouldn’t want these implications to be negative. Once you know what the potential outcomes are, you’ll be better prepared and can make a much more informed decision for your construction business.
Though this could be something you’ll need to actively work on, it has a significant impact on your business, making it more than worth it.
5. Build A Solid Team
The people you hire for your business make a significant difference in how well it performs. They’ll be the ones carrying out the work, after all. Make sure these are as high-quality as possible. Hire the most skilled applicants you can afford, and make sure they’re as well-trained as possible.
By putting effort into this from the start, you’ll make sure any projects you do are done to a high standard. Don’t just put effort into finding and hiring the best applicants, however. Make sure to retain your best workers. Not only does them leaving make a gap in your workforce and impact your operations, but finding replacements can be costly.
Reward and promote high-performing workers when appropriate, and keep your employee retention rates high.
6. Quality Is King
Quality is something you should always focus on with your construction business. You shouldn’t do anything that sacrifices it. In contrast, you should always look to improve it as much as possible. Not only does this mean everything you build will be safe, but you’ll become known for your quality.
That works into your reputation, which is vital for growing your construction business. The more positive your reputation, the better. Nobody wants to be known as a low-quality company at all. If you end up that way, you’ll constantly face an uphill battle and mightn’t be able to actually grow.
By making sure you keep things as high-quality as possible from the start, you shouldn’t have to worry about this.
When you’re figuring out how to grow your business, you’ll likely need to determine how you can get more projects and work. It’ll be a vital part of bringing in revenue and visibility, after all. That’s why you need to get the word out, as mentioned above. Marketing is far from the only way you can do this, however.
You can also network in your local community to help with this. There could be plenty of trade associations you can join and business events you can take part in. These can all provide multiple opportunities for more work and expansion. While they take a decent amount of work and effort, it’s more than worth the effort.
You’ll not only generate leads for your future work, but you could even find new vendors. These could be more affordable than your current ones, letting you increase your profit margins on work in the future.
8. Embrace Change
Markets can change and trends can come and go, which can often be confusing for many entrepreneurs. That change isn’t exactly a bad thing, however, but you’ll need to be adaptable to take advantage of it. Since construction can be a volatile field at the best of times, make your company as flexible as possible.
By being ready for and embracing change, you can take advantage of these changes quickly and easily. It’ll be much easier to stay ahead of your competition, which is always vital to growing any business. If you’re unwilling to do this, you could end up falling behind, and your competitors could overtake you.
Nobody wants that to happen, so be willing to embrace change.
9. Play To Your Strengths
Are there areas that your construction business excels in? What about areas it’s not so good at? While you’ll naturally want to improve your weaknesses, it doesn’t mean lean into them. Instead, it’s a matter of playing to your strengths. By focusing on these, you can become known specifically for them.
If you’re great with hotel constructions but don’t know much about building a manufacturing facility, for example, what’s the point in focusing on both? By concentrating on the hotel construction side of things, you can develop a reputation as an expert in it. With that, you should bring in more projects related to that and be able to charge more.
It’s a much more effective way of growing your construction business.
10. Be Selective
When you’re trying to grow your construction business, you might think you’ll have to take on more and more projects to get there. While there’s some truth to that, it doesn’t mean taking on anything that comes your way. You’ll need to be selective about what you work on and which projects you do.
Some will be much more profitable than others, and it’s worth avoiding ones that don’t offer a decent return on investment. If the projects don’t increase your profits as much as you’d like, then they mightn’t be worth considering. Take the time to run the numbers and see if they’ll be right for you.
You’ll save yourself a lot of time and hassle while actually increasing your profits.
How To Grow Your Construction Business: Wrapping Up
Once you know how to grow your construction business, you’ll see a host of benefits. You shouldn’t have a problem bringing in new clients, constantly delivering high-quality results, and seeing a decent profit. There’s no reason not to put effort into it, but you’ll need to focus on the right areas with it.
Playing to your strengths, investing in your business, building a solid team, and similar tips will all help with this. While it’ll still take a bit of time and effort to get there, the benefits alone make it more than worth it.