How to Expand Your Construction Business Services
A construction professional’s business is more than just a job — it’s a way of life. That’s why, when you decide to expand your construction business services, you need to make wise choices to keep things running smoothly and make a profit. Do you know where to invest your funds? Do you have a solid marketing strategy? Take a look at this list, then decide for yourself.
1. Be a Better Manager
Part of running a construction company entails managing your employees. First, you need to define people’s roles clearly. Your workers should know exactly what their title is and what responsibilities their job entails.
Tell your workers what your expectations are for them and your company. Ensure they understand your brand values, let them know when they should arrive at a job site, and encourage them to communicate if they have any questions.
Delegate some of your responsibilities so you’re not pulled in 10 different directions. Otherwise, you might suffer from founder’s syndrome, the phenomenon where a business owner has to do everything themselves because no one else is trained to step in and help. Delegating some of your tasks also enables you to avoid micromanaging people.
2. Set Yourself Apart
What can you offer that competitors can’t? Maybe you’re the only construction company in an area or the only one who does brick masonry. You need to specialize in something, whether it’s your location, customer service, or pricing, to stand out from the crowd.
3. Write a Strategic Business Plan
At the heart of every successful business is a solid plan. The key elements you need to include will answer questions like:
- Where do you want to be in five or 10 years?
- What are your company values and ideals?
- Why do you want to run a business? What inspired you to start a construction company in the first place?
- What upcoming projects do you need to focus on?
When crafting a business plan, use the S.M.A.R.T. method to plan your goals. The first step is to make your goals specific. Instead of saying you want to expand your construction business services, you could say something like, “I want to start providing bulldozing services.”
The M stands for measurable. You could write your goal as, “I want to buy two new bulldozers to start providing bulldozing services.” Your goal must also be achievable. Are new bulldozers within your current budget? Make sure your plan is realistic.
The next letter in the S.M.A.R.T. method stands for relevant. Do your customers need bulldozing services? Will this move help grow your construction business?
Finally, your goal should be time-bound. You could now write your statement as, “I want to buy two new bulldozers by the end of the year to start providing bulldozing services.” This goal is detailed, relevant to your business, and specific enough that you know how to get started on it.
4. Make Smart Investments
Growth requires investment, which in the construction industry, often means investment in physical capital like heavy equipment to expand into new business projects. Moving from residential to commercial construction, for example, may require more paving machines for parking lots.
This kind of investment requires funding. Many business owners will opt for equipment financing, which allows them to invest in their future without tying up all their capital in expensive purchases. Others may rent equipment to try out a venture before committing to it permanently.
You may also need to expand your labor investments, whether that means training your current workers or hiring new ones entirely. Keeping up with market trends in recruitment and development can help business owners expand services with a skilled workforce.
5. Know Your Numbers
Get an estimate of what a project will cost before starting it. Use construction software to plan the expenses of individual items such as materials, fuel costs, and worker salaries.
An excellent way to grow your business is to find better customers at higher margins rather than taking on dozens of lower-paying jobs. Don’t sell low-bid prices to win work — set them based on what you’re actually worth, and you’ll make more money in the long run.
6. Get Better at Marketing
A website is essential for people to take your business seriously. It helps people find you in the first place and decide if you have the services they need. An online presence also lets people check out your good reviews, which is a form of word-of-mouth marketing.
You can craft a solid social media presence to engage directly with your clients. People will be able to ask you questions on your page, and you can answer them quickly and thoroughly. You can also post photos and videos of some of your work so potential clients know what you offer.
Growing Your Construction Business
It’s exciting to watch your company grow. Keep these tips in mind when you decide to expand your construction business services, and you’ll be off to a great start.
Need a Business loan to grow? Check out Capital for Business funding solutions for startups or apply for a business loan today.
Read this next: How to Keep a Construction Budget Under Control
Evelyn Long is a writer and editor focused on home building and construction. She is the co-founder of Renovated, a web magazine for the home industry.
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