There are currently over 330,000 construction businesses in Australia that directly employ 9% of the country’s workforce. But, don’t let these numbers fool you. According to a study by Illion, 12.7% of companies fail within their first year of operation.
If you’re starting a construction company, how do you prevent your business from becoming another statistic? Is there a cheat sheet you can use?
Well, you’re in luck. We’ve put together 7 proven strategies that will help you grow your construction business. Read on.
1. Grow Your Construction Business by Investing in Marketing
The days when companies could rely solely on a solid reputation to propel their brand are long gone. With so many construction companies out there, it’s easy for yours to get lost in all the noise.
While having a good reputation is a great thing, you need to put your company on the map. This means you’ll have to invest some money in a comprehensive marketing strategy.
With the right marketing team, a six to twelve-month plan is enough to give you a tangible ROI. Tapping into the digital space should adequately communicate your message to your audience and generate revenue through lead conversion.
2. You Can’t Afford to Ignore Technology
Technology is a term most people who are stuck in the old ways of doing things find intimidating. As a result, they lose out on all the potential benefits their businesses would derive if they simply embraced it.
The reality is most construction company owners choose to stick to old-school methods and tactics of doing business. They might think they know everything (which could be true) but are missing out on how they could use modern technology to their advantage.
For instance, adopting a cloud-based platform would provide a comprehensive solution to centralized data entry, communication, and administration, more so in distributed sites. Additionally, the evolution of technology has seen the emergence of innovative equipment that is changing the pace of construction as we know it. Investing in modern technology will see you recoup your funds in no time at all.
3. Improve Your Customers’ Experience
Customer service is both an art and a science. You have to strike the perfect balance between pleasing your client and knowing where to draw the line when they make unrealistic demands that could stall your projects.
You and your customer need to be equal partners in the decision-making process. So, ensure that you keep them up to date on all aspects of the project.
A happy customer equals more referrals. That will ultimately generate more revenue for your company in the long run.
4. Don’t Compromise on Quality
The construction business revolves around margins. Effective construction business management strategy is all about minimizing the time and costs associated with a project in order to make a viable return upon its completion.
While this is crucial, you cannot afford to relent on the quality of your work. A company’s reputation is only as good as its last project. You may have done countless great projects in the past, but, it only takes one bad project to ruin your company’s reputation forever.
5. Your Team Is the Backbone of Your Construction Company
The people you have working for you, play a major role in the success or failure of your company. When it comes to running a successful construction company, you need a team of smart, skilled, and dedicated individuals who share your vision and goals for your construction business.
A great team like the one on this site needs to be community-oriented, have great values and a high level of integrity if you want your business to thrive. Keep them motivated and make them feel valued in your company. Always be ready and willing to reward hard work.
6. Reduce Your Staff Turnover
The one thing nobody tells you when you’re learning how to start a construction business is just how expensive it is to replace existing employees. The costs associated with advertising for new positions, recruitment, and training can really add up.
If you make this a habit, it will negatively impact your company’s bottom line. Replacing existing staff should only be an option after all other measures to salvage the situation have failed.
More often than not, you’ll find that proper training is all that was missing. Continuous training to your staff should be viewed as an investment, not an expense.
7. Monitor Your Finances
It’s very easy for a construction company to sink into oblivion if business owners don’t keep a close eye on their finances. Don’t jump at the chance to work on a new project every time you get an offer.
Before you agree to anything, first request the client to arrange for a site visit. Only then will you be able to get a clear picture of the scope of the project.
Do a comprehensive breakdown of the end-to-end costs of the project, and factor in your margin before presenting the client with your estimate. You might find that what the client offers to pay won’t even cover the overheads of the project. Know when to walk away.
The Bottom Line on Construction Business
Regardless of whether you’re starting a construction business or you’ve been running one for a couple of years, your ultimate goal should be to safeguard its longevity. Use the tips in this guide to effectively manage your resources and scale up your operations. With patience and smart decision-making, you’ll see your construction business soar to new heights.
Is your staff running low on morale? Read our blog to discover just how you can create a happy office for your employees.