The construction business is a major part of the economy. One source states that it accounts for over seven million jobs, more than 700,000 employers, and almost $1.5 trillion in structures constructed each year. But the US Department of Commerce says that the construction business also has one of the highest failure rates. So, how can you give yourself the best chance at success? You'll need to learn what steps to take in growing your business strategically and responsibly.
What Goes Into Expanding a Contract Business?
Here are five elements involved in the expansion of a construction business.
1. Time
It takes time to expand your business. Balancing time is one of the greatest challenges. You’ll need to set aside time for:
- Answering phone calls
- Meeting with new clients and communicating with current ones
- Planning and estimating
- Purchasing and logistics
- Employee management
- Pulling permits and scheduling inspections
- And much more!
As your business expands, you can hire and delegate some of these tasks, but you will always have the need to prioritize and make time to grow your business.
2. Effort
There is a fine balance between the need to delegate and the need to take responsibility. Your own efforts will be what ultimately lead to the expansion of your business. You will likely see a return on your investment based on the personal effort you extend to grow your company.
3. Dedication
Hard work comes from dedication. Your commitment to your business will translate into effort. The more committed you are, the harder you’ll work, and the more results you will see. When things seem slow, don’t get discouraged. And when things go well, don’t be content to sit back and relax. Stay committed and keep pushing forward.
4. Leadership and Investing in Yourself
Hiring the right people will often make you more successful than trying to do the work yourself. Skilled employees who are dependable, knowledgeable, and good communicators will give you peace of mind and satisfy your clients. Keep your workforce happy with rewards and incentives. Keep them current by taking the time to train them.
5. The Right Processes and Operations
Sometimes people get so busy they fail to see that they are being inefficient. Take a step back now and again to evaluate your processes and operations to determine if you are making the best use of time and resources. Find what works and stick to that, but don’t shy away from reevaluating and thinking outside the box. It’s also helpful to create standard operating procedures. These make it easier to delegate tasks, particularly as you scale up.
How to Grow Your Construction Company
Here are five tips on how to grow your construction business:
1. Invest In Your Company
You'll need to be willing to invest both time and money in your company. This may involve:
- Investing in highly-skilled, quality labor
- Investing time in networking with other professionals to get referred for more work
- Training your staff in how to work with newer products, such as GAF, Owens Corning, or James Hardie so you can provide innovative, high-quality products to customers.
2. Develop a Marketing Strategy
A good marketing strategy needs to properly address at least two needs: getting more work, and keeping existing customers happy. Use an online presence for the former, and your physical presence for the latter. One of the major complaints of customers is that they don’t feel the contractor is involved or interested. Hire good people, but make sure your client knows you are personally interested in their satisfaction.
3. Project Management
Leverage digital or online tools to make project management more efficient and cohesive. Make sure you have a comprehensive view of all your projects and how they’re progressing. Even when you have the right people, you can’t afford to sit back and relax. Be an active, visible leader for your team. Work by this principle: manage your projects but lead your people. It’s important to find the right balance and trust the people you’ve hired to do their job, while you maintain organizational control.
4. Manage Finances and Profits
Profits aren’t dependent on getting lots of work, but rather on getting the right jobs. You can have numerous jobs and be so busy you can’t take any more work, but you still may not be making any money. Keep track of finances using software and tracking tools. This will allow you to see what works and what doesn’t, so you can adjust, reducing losses and maximizing profits.
5. Try to Reduce Waste
Using the right tools and methods can help to reduce waste. Proper estimating, forethought, and efficient logistics can do a lot to save time and money and increase profit margins.
How HOVER Can Help
Whether you want to save time, reduce waste, or improve your process, you need the right tools. A good marketing strategy and proper management of finances, profits, and projects also depend on having the right resources. Turn to professionals, like our team at HOVER, to help you grow and expand your contracting business. We create an interactive 3D model of a property that can be used for measuring, designing, and estimating. General contractors, builders, roofers, renovators, and others can schedule an appointment to consult with one of our representatives, or sign up to create an account on HOVER today to take advantage of our expert services and tools.
