There is no doubt that the COVID-19 pandemic has hit the construction industry hard. Therefore, if you own a company of this type, it is essential that you know how to grow your business once we overcome this pandemic.
However, your company may first need to optimize its operations to be better positioned. Your construction business will need to learn the right strategies to stay ahead of the competition and continue to grow.
But do not worry. Here are six tips to help you grow your construction business and establish yourself as a favorite with your customers.
1. Evaluate your organization and make the necessary adjustments
You will have to do a self-critical exercise of your construction company, a thorough and comprehensive evaluation before developing strategies. Have honest conversations with your top managers, executives, and finance guys. Positively accept every feedback you receive. This will allow you to get a realistic picture of the state of your business and guide you in making more prudent and intelligent decisions moving forward.
You should ask yourself: Is my company financially stable? Do we have enough satisfied customers coming back to commission other construction projects? Do we get referrals from them? What is the employee turnover rate in our company? Keep in mind that if there is something wrong at the base of your organization, all the efforts you put into marketing could be in vain.
Similarly, if your clients aren’t happy with your work, getting your team in the best possible shape is the first step in expanding your construction business.
As you determine what the real internal situation of your company is, rate the skills and personalities of each of your workers. Make sure only people with the right training and skill set are on your team. Hire experts and professionals to avoid costly mistakes.
2. Find financing for your operations
Businesses generally need capital to keep their operations running smoothly and to support their plans. Unfortunately, not many contractors have the skill and financial knowledge to pull it off on an ongoing basis. In fact, for many construction businesses, maintaining positive cash flow is often difficult, especially when customers fall behind on their payments.
To mitigate the situation, you can set up a system to better control and manage expenses. A good starting point is to control and reduce your labor costs and production costs .
In addition to this, look for ways to access a line of credit , get overdraft protection, or borrow from banks and other financial sources, such as Financial business loan . We are one of the most respected providers of commercial loans in the construction industry, having provided various loans, financing and professional assistance to many prestigious companies in this industry.
3. Manage your finances well
Simply put, spend your funds carefully and wisely. Most contractors and construction business owners know that for such a business to not only prosper but continually grow, they must have a constant cash flow .
However, the reality is that many construction companies fail along the way because they cannot cover the overhead costs they commit to before starting a project.
Therefore, it is necessary for you to regularly monitor your overhead expenses and be aware of any additional costs that may arise before accepting any new project.
What should you take into account when preparing budgets and evaluating offers?
When budgeting your construction projects, your total price should include all the costs you will incur, and you should make sure to take into account the value of the materials and the work done. In any case, make sure that the costs for completing the projects do not increase, in order to obtain the profits that you have projected in advance.
When evaluating bids you receive for major projects, don’t skimp on price for your construction company. You should know that, contrary to popular belief, those companies that receive contracts on a regular basis convince their clients not by their low prices, but by their good reputation and by using superior quality materials.
4. Never compromise on the quality of your work
Particularly in the construction business, cutting costs can sometimes have catastrophic consequences. Think twice before saving an expense that could sacrifice the quality of your work. Your company’s excellent reputation goes hand in hand with highly polished and superior construction work.
5. Build and establish a reputation for excellent customer service
If your construction business is coupled with good customer service, your business will grow faster as your long list of satisfied customers are more likely to recommend your services to others and refer new customers to you.
As marketing experts know, word of mouth is the most effective and credible type of advertising for any brand, company, or product. The construction market is no different in this regard.
Basically, the key is to go beyond customer expectations. In other words, your entire construction team should work not only to satisfy customers, but to impress them and let them know that they made the right decision by hiring your construction company.
Retaining returning customers means less spending on marketing and advertising since you don’t have as much of a need to find new customers. With a solid reputation, good customer service, and great references and reviews, everything else will follow. In a nutshell, your ultimate goal should always be to leave your clients in awe when they check out the finished project.
6. Make marketing a priority
For your construction business to move forward steadily, you need to invest in your business branding and effective marketing of your products and services. Your business must have profiles on Facebook , LinkedIn, Yelp and Yellowpages.com. In addition, it is essential that you design a professional, interesting and easy to navigate website.
Follow his example! Learn here how Komark Concrete built their website in 5 easy steps .
Create a unique, attractive and eye-catching icon or logo to easily represent and identify your company. Add a short but relevant motto that means something to the members of the construction guild. For example, similar to Nike’s “Just Do It” tagline, yours could be something like “Let’s stay one step ahead.” This communicates that your construction company is a leader. Print this message on all your marketing materials: brochures, billboards, t-shirts, stickers, letterheads on letters, etc.
Include this message on internet platforms where your construction company is located. Keep in mind that today, digital marketing has become one of the most important elements for the development of a company, and that it is key to reaching a larger audience, obtaining new clients and getting a message of interest to spread. word of mouth among the people. It is also a creative way to grow your construction company.
You are not alone,
As the construction industry reopens, it’s important to know where your business is now, what’s ahead, and what additional steps you’ll need to take once you’re allowed to resume operations.
If you need financial help, now is the best time to seek it. The financing obtained can make a difference and applying for a business loan will only take a few minutes without affecting your credit.
As you prepare to reopen, don’t miss out on the resources we’ve developed for small businesses. Subscribe to our newsletter and stay up to date with tips to strengthen your business during these uncertain times.