12 Tips For Expanding Your Construction Business

Business growth takes careful planning. This is particularly true in the construction industry. If you are ready to take your construction business to the next level, your first task is to make sure that you have the people and infrastructure that you need to deal with all of the new work. Otherwise, you could find yourself struggling to keep up.

As you expand your company, these 12 tips will help you avoid any growing pains along the way:

1. Hire The Best People

Construction involves more than just raw materials and tools. It also requires highly-skilled people who have the knowledge and experience necessary to complete projects successfully. To improve employee retention, regularly reward your top employees by giving them promotions, raises, recognition, or other incentives.

2. Avoid Micro-Managing Your Staff

Employees enjoy working with a great leader. What they don’t like, however, is someone who micro-manages everything that they do. It is important to take a step back and let your employees make their own decisions. As long as you make smart hiring decisions, you can trust your workers to handle their jobs without the need for constant supervision.

3. Don’t Be Afraid To Invest In Your Company

If you are going to be handling more projects, you need to be willing to invest more money in your business. Taking on additional work means that you will need more equipment. You also will have to spend more on training and on investing in the latest technology. Don’t forget about your marketing expenses, as well. Think of expenses like these as investments in your future. Make sure you are up to date on tax laws and changes with VATGlobal.

4. Focus On Profitability

Growing your business isn’t simply about taking on more accounts. Instead, it is about increasing your profits. Carefully analyze the numbers for each job to determine whether the profit margins are high enough to justify the extra work.

5. Get People Talking About Your Business

People often rely on personal recommendations to find a contractor. To start getting more work, encourage your current customers to spread the word about your business.

6. Consider Specializing In A Niche

There are a couple of different ways that you can approach your business. One option is to set your business up to handle general construction projects. Another option is to specialize in one specific niche. For instance, could you charge more and get more work if you were the go-to contractor in your area for LEED-certified commercial renovations? You may find it easier to stand out if you specialize.

7. Build Business Connections

Create more local connections through networking and community service. Consider joining business groups in your area. This is a great way to get your business in front of more people, which can result in more leads. Community service can also shine a positive light on your company, building brand recognition and providing new opportunities.

8. Make Quality Your Company’s Trademark

Never take shortcuts with your business. The quality of your work directly impacts the reputation of your business. If you do shoddy work, the odds of finding new customers significantly decline. Build a company reputation that you are proud of by always providing high-quality service and going above and beyond for your customers.

9. Be Willing To Adapt

Construction trends are constantly changing. Practically overnight, the entire industry can shift. If you are unable or unwilling to adapt, you can easily be left behind. If you want to stay on top, on the other hand, you need to embrace change and do your best to follow construction industry trends.

10. Value Your Customers

Providing excellent customer service is essential if you want to succeed. You don’t have to compromise your values or give in to every request. However, you always need to communicate clearly. Any decisions that are made need to involve the client, as well. By keeping your customers happy, your business will naturally grow through word-of-mouth advertising.

11. Don’t Wait For Work To Come To You

If you want more work for your business, you need to actively go out and find it. Don’t just sit around waiting for new jobs to come to you. Instead, regularly touch base with your contacts to discuss upcoming projects or to see if there are ways that you can help.

12. Don’t Rush Into Major Decisions

Business decisions should never be taken lightly. Even minor decisions can have a major impact on your long-term success. Always think through the effects of any decision, making sure that you have considered all possible outcomes. Don’t just think about how the decision impacts your company now, but also in the future. Acting on impulse without carefully considering every angle is a surefire recipe for disaster.