is it time for you to grow your construction business? Do you want to expand into new markets? Growing your construction business, whether you’re just starting out or have been in the industry for years, requires very careful and elaborate planning. In order to strategically scale up your operations, you need ensure you will have the resources to handle the additional work in the first place. There are primarily two ways to grow a successful construction company: taking on more projects or taking on bigger projects. But it would be hard to do either successfully without the right information, techniques and strategies.
Great vendor service
The growth your company sees is dependent on more than just the customers. You should also focus on keeping your subcontractors and heavy equipment suppliers happy with good vendor service. A contractor who makes sure its subs and suppliers are getting paid on time and in full is a rarity these days. Therefore, if you do it they will most definitely appreciate it and see the potential of future projects which will lead them to keep coming back.
Here you should also consider the opposite scenario when you aren’t proactive about your vendor relationships. Mismanaging your cash flow and not paying your sub-contractors and suppliers on time can harm your reputation which will lead to low-quality vendors, or you’ll have to pay a premium for good ones.
Learning how to grow your construction business calls for a plan, a direction, and a vision. Your vision and direction are contagious, whether good or bad. Therefore, you need to develop a plan you believe in if you want to lead the people in your organization toward success and a growth mindset.
Solid accounting procedures are necessary in a business to know what’s coming in, going out and the costs in operations of the business. Also, if you want to secure financing for projects, the lender will want to see concrete numbers. They’ll want to see accounts receivable and payable, bank statements, financial documents etc.
Employees are the foundation of any company. Therefore, reliable and skilled employees are the most valuable asset a company can have. They’re also the face of the company and it takes a special employee to handle that responsibility correctly.
Diversified supply chain
One or two supply houses and machinery traders are enough for a smaller construction company. However, as a company grows and the projects become bigger and more expensive, so do the issues caused due to supply chain disruptions. Additional weeks waiting for metal roofing for example will upset the customer and cut into the company’s bottom line.
A good construction attorney can really make difference. They would know how to navigate the construction laws, handle payment disputes, advise you etc.
Strong business policies
All businesses that are successful have a roadmap of business policies they follow. For instance, a strong credit policy ensures you are extending credit to the right customers. The collection policy determines the processes to make sure you’re getting paid.
Great customer service
You should never underestimate the importance of satisfied customers. Not only will a happy customer continue to associate with your company for future endeavors, they’ll also refer others to you. However here, there’s more to the equation than smiles, you really need to become a master of communication. It’s important that a customer knows what they’re getting instead of selling them unrealistic goals. Therefore, you should be setting your customers’ expectations correctly to ensure they’re realistic and once you set them, it’s critical that you meet them consistently.