7 ways to grow your home-building business
Growing your home-building business and increasing profits can be challenging, but not impossible. Here are seven tips and tactics to help your residential construction firm reach its potential.
1. Build a reliable team
In the home-building industry, the team you build can make or break your pursuit of success. To best position your company for growth, focus on acquiring skilled, knowledgeable, dependable employees.
Additionally, make sure you promote and reward your best employees. Post-pandemic, employees are much more willing to leave companies if they don’t feel valued. To foster retention and commitment to your company, make sure your employees feel valued.
Pro tip: Many companies refer to their employees as assets. However, your employees are people, not a commodity that you own. Treat your employees like people instead of assets, and you may notice deeper commitment from them. That, in turn, can give you a clearer path to growing your business.
2. Treat your customers well
On the flip side, treating your customers well is crucial to growing your home-building business. Most people don’t want to work with a jerk—they’d much rather work with someone they like. And that applies no matter your skill level!
While you shouldn’t give in to every unreasonable demand, it’s important to work hard to fulfill your clients’ expectations. Actively communicate with clients on every key aspect, and make sure they feel involved in the decision-making process. Satisfied customers are more likely to pay you on time, refer you to others, and do business with you again.
3. Invest in your company
While it can be tempting to play it conservative and stick with what works, home-building growth often requires 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.
4. Be selective when accepting jobs
The old saying goes, “Jack of all trades, master of none.” It’s tempting, especially for builders just starting out, to accept any job that pops up.
However, to grow your home-building company in the long term, you might be better served finding jobs that return maximum profit for you. There’s simply no sense in doubling your workload if you aren’t increasing your profits substantially. This may require you to figure out what you’re the best at.
Whether it’s tract housing or fully customized housing, knowing which jobs maximize your profits is crucial. It also requires a good deal of discipline and knowing your strengths.
5. Play to your strengths
Knowing what you’re good at can help you build your brand, which can help you pursue growth more successfully.
Consider this example: 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.
6. 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.
7. 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 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.
You can also be proactive by covering your homes with an industry-leading structural warranty from 2-10 Home Buyers Warranty (2-10 HBW). According to a co-sponsored survey by 2-10 HBW and the NAHB, 94% of prospective home buyers are more likely to purchase a new home from a builder that offers a structural warranty.
Give your clients and prospects something they’re looking for with 2-10 HBW.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.