We’ve already talked about ways builders can increase productivity, but there are many other strategies construction companies can use to grow their businesses and increase profits. Here are seven tips and tactics to help your residential construction firm reach its potential.
- Build a reliable team. In the construction industry, your people are more than assets; they are your business. To ensure that your company has what it takes to succeed and grow, focus on acquiring skilled, knowledgeable, dependable employees. With the lingering skilled trade shortage, it’s also important to promote and reward your best workers so you can retain them well into the future.
- Invest in your company. While it can be tempting to play it conservative and stick with what works, you will have trouble growing unless you take a forward-thinking approach. This means investing in new technology and equipment that can make you more productive. It also means training your workers and actively marketing your company to line up consistent business and build your brand.
- Be selective when accepting jobs. When they first get started, builders eagerly accept just about any job they can find. To consistently grow your company, however, it’s not enough to earn more work; you need to look for projects that will yield maximum profits. There’s simply no sense in doubling your workload if you aren’t increasing your profits substantially. What’s more, if you saddle yourself with an unwieldy workload, you will be too tied up to seize a golden opportunity if it comes along unexpectedly.
- Network for more work. Make connections with key players in your industry by joining and staying active in a local chapter of a trade association. This will open up powerful networking opportunities that can boost brand awareness, generate leads and create profitable relationships with vendors. It’s also a great way to establish a favorable reputation within your local community.
- Be proactive. It’s quite common for builders to struggle to find work when they first start out. It’s also common for builders to become content and complacent when things finally pick up. Your company will never reach its full potential if you merely sit back and wait for work to fall into your lap. Instead of being reactive, get proactive by seeking out new opportunities. Consistently reach out to architects, owners and general contractors to learn about any projects they may have on the horizon.
- Play to your strengths. In an attempt to maximize growth potential, many construction companies try to cast a wide net by positioning themselves as jack-of-all-trade builders. Unfortunately, this can actually stifle growth by diluting your brand. Would you rather be known as a decent, mid-level general contracting company or the top local contractor doing LEED certified renovations? Ultimately, the answer depends on what you hope to accomplish now and in the long term. If you want to set yourself apart from the competition, focus on what you do best and invest your time and money accordingly.
- Treat your customers well. While you shouldn’t give in to every unreasonable demand; it is important to please your clients as much as possible. Actively communicate with clients on every key aspect, and make sure they feel involved in the decision-making process. Satisfied customers won’t just result in faster payments; they will lead to positive referrals and repeat business.
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