Your construction business will always have clients as long as people need to renovate existing residential and commercial properties, build new houses and open up strip malls. This abundance of opportunities makes it easy to grow from a small business to a large one.
Some of the things you will need to prosper in the construction business are an efficient business operation, the equipment to compete for big projects, a solid marketing plan, and a reliable workforce.
Implement an Efficient Business Operation
Since a construction business is a complicated undertaking you will need to have a good understanding of the best business practices and hire competent managers and supervisors.
Specifically, you will need to have the following 3 business systems in place: the use of common accounting principles; an understanding of regional economic conditions; and a high level of expertise in the construction building industry.
Buy or Rent Good Equipment to Bid for Big Projects
Your biggest operating expenses will be the equipment you use. You may need foundation equipment like compactors, dozers, and bored piles. You may need cranes like crawler cranes, rough terrain cranes, and telescope cranes. You may need aerial work platforms like boom lifts, telehandlers, and material lifts. You may need concrete pumps like material concrete pumps, truck mixer concrete pumps, and shotcrete machines periods. And, of course, you may need miscellaneous equipment like generators, air compressor, and light equipment.
While you may be able to rent some of these, others you may decide to invest in a few. You should buy equipment if you find that you’re using them often in your construction projects or that the rented equipment is often banged up and hard to use.
Since the equipment that you do buy will be expensive, you want to make sure that it’s well-maintained, and one way to do this is to use a chromium carbide wear plate, which is precision-engineered to handle severe abrasion and extreme impact.
Develop a Solid Marketing Plan
It doesn’t matter how at efficiently you administer your business and how well you equip your workers for construction projects if you don’t also have a solid marketing plan to keep the work flowing in. If you don’t have a steady stream of business, then your expenses will become overwhelming.
Marketing in the construction industry has its fair share of challenges. You’re always coping with cyclical demands, you routinely face fierce competition, and you’re forever juggling with fluctuating costs. The best way to meet these challenges is too consistently build relationships with reputable clients.
A reliable marketing plan should include the following 3 business principles:
First, don’t spread yourself too thin by taking on too many jobs without having enough resources to do a good job in a timely fashion. Think of each customer as a potential referral. You won’t win their support by doing a shoddy work because you were overwhelmed by too many projects.
Second, keep all your online listings constantly up-to-date. Make it easy for customers to find you through directories like HomeAdvisor and major search engines Like Google, Yahoo, and Bing.
Third, remember that referrals are your best source of business. So, use noncompeting businesses to build a referral network.
Manage A Reliable Workforce
It is highly unlikely that you will constantly be able to hire the best craftsmen for all your construction projects. Instead, the reality of the construction business is that most people who want to work in the trades as carpenters, roofers, form setters, tapers, among others, learn on the job.
For this reason, you will need to cultivate your own craftsmen by providing excellent on-the-job training.
Keeping your workers productive will mean offering competitive pay, incentives, and benefits.
You must also have clear policies in place when it comes to conflict-resolution, discipline, training, hiring, and firing.
Finally, you must provide your construction workers with a safe work environment and practice fair management policies.
Growing Your Business
The construction industry offers plenty of opportunities for business growth if you are able to consistently provide your clients with high-value work.
If your business is small, then you will initially have to manage everything yourself. But as it grows, you will be able to hire a few managers who will then answer to you and a board of directors.