In construction, there isn’t a one-size-fits-all formula you can use to increase revenue. So, how can you grow your construction business and boost your profits?
Business Growth Academy is a unique approach to business growth within the construction sector that helps you define what success looks like. It’s a way of getting clarity on what your goals are, so you can create a plan that will help you reach them.
10 key steps to grow your construction or trades business
1- Setting Expectations for Your Business
Business expectations are fundamental to your business growth, they describe the vision, values, mission, and goals of an organization. It also includes plans for how to achieve those goals. A business plan outlines the steps to a profitable and sustainable company.
Creating a vision for your business is an essential part of the growth process. It helps you to identify your company’s strengths and weaknesses, set short- and long-term goals, and understand the potential opportunities that lie ahead.
2- Defining their ideal customers
Many companies often overlook the importance of defining their ideal customers. To build a successful business, you must identify your ideal customer and provide what they need.
A key audience type is a group of people who have common interests and are willing to purchase your product or service. These groups can be used as a filter for your target audience.
3- Be selective to be profitable.
Business gains no added benefits when its affairs grow without a proportional increase in revenue. The key to business growth is being selective. To be profitable, you have to take on the right workload and make it pay off.
The key to being successful is to only take on as many as you can to be profitable and reinvest in the growth of the business.
4- Keep Your Eye on the Money
Know your business numbers, keep an eye on the number of customers and revenue for your company to know whether you’re making the right decisions.
It’s key that you fully calculate all your Direct and In-Direct costs (fixed and variable) to ensure you never leave money on the table and be very clear on the difference between mark up and margin, they can be critical to your business survival.
5- Get the word out.
Word of mouth remains the number one method most construction companies use to market their business and earn more work. Encourage your best customers to tell others about the great work your company does.
Another great way to do this is to network, join and be active in the local chapter of a trade association. Networking can be a useful tool to build brand awareness for your company, generate leads and find vendors. Being active and giving back to your community is also a great networking opportunity for your business.
6- Play to your strengths.
Would you rather have your company be known as a decent all-around general contracting firm or the best general contractor doing LEED-certified hotel renovations? Finding a niche market or specializing in a specific industry can set you apart from your competitors.
Companies sometimes have the struggle to find the right niche. Many companies try to enter into an industry that they are not good at, only to find out that they are not able to compete.
A business should play to its strengths in order for them to grow and prosper.
7- Invest in your business.
If you want to earn more business you have to invest time and money into your company. This means buying new equipment and technology when needed, training your employees and actively marketing your business.
8- Quality is king.
Tread carefully when considering any measure that could sacrifice the quality of your work. Cutting corners to reduce costs speed up the completion of a project can be detrimental. Your company’s reputation for doing quality work is only as good as your last project so never compromise your high standards of performing quality work.
9- Change is good.
Adaptability is one of the keys to success in the construction industry. As we’ve seen with the recent recession, construction can be quite a volatile industry. If you are unwilling to make adjustments in your business to keep up with the changing trends you are setting yourself up for failure.
10- Give great customer service.
Pleasing your clients should be a top priority. This doesn’t mean you have to cave to their every demand. You should be actively communicating with your client on all aspects of a project so you can be equal partners in the decision-making process. Satisfied customers will lead to repeat business and great referrals.
Looking to grow and develop your construction or trades business?
Why not get in touch today and see how we can help you create the business that works for you, not against you, a business you can be proud of.