Today’s construction industry is fluid in the sense that there are countless opportunities to grow your construction business quickly if you land the right job. On the other hand, this fluidity can spell the end for other entrepreneurs who either struggle to break even or have gone bankrupt.
To avoid such a grim scenario, here are 8 steps you can take to successfully grow your construction business as told by Belle Banne.
Employees as leaders
The blue-collar vs white-collar antagonism is so 1900s. The modern division of work not only treats all workers the same regardless of their post but it treats all workers as leaders. Good managerial skills, therefore, imply that every builder you employ should have a saying in how the business is run. Folks who are outside all day nailing the roof or digging the foundations know best what your business needs to grow.
Watch overhead expenses carefully
Growth is inherently connected with investment, i.e. parting with money. In order to have enough money to invest, you need to keep a close eye on your overhead expenses. If these increase uncontrollably, your cash flow will be disrupted and you’ll lack funds to pay the workforce, let alone expand your business.
Know the cost of growth in advance
Growing your business is going to cost you a pretty penny but do you know exactly how much? If you can guestimate these costs accurately, you will gain an advantage over the competition because they will not be ready to take such a major financial blow. Furthermore, you need this data to adjust the prices of your service accordingly in order to stay profitable.
Future deals and future expenses
From setting up a construction deal to actually building the structure, often several months elapse. During this period, both incurred labour and material costs increase but the stipulated payout remains the same. This scenario can seriously damage your profits, sometimes pushing you into the red. Protecting your planned profits from rising costs of construction work should on the top of your agenda!
Lowering the cost of equipment
The construction industry is known for the need for various machines, vehicles, and equipment. Instead of buying cheap machinery and then dealing with the hidden costs of endless repairs, better buy the excellent quality equipment from the very start. From conveyors, like the ones Belle Banne makes, to heavy-duty dump trucks, reliable machinery ensures there are fewer malfunctions and potential injuries caused by faulty equipment.
The sky is not the limit
One of the main reasons why aspiring construction companies fail is because they bite off more than they can chew. Growth implies accepting jobs that are larger in scale and more elaborate than the previous ones but avoid making huge leaps in terms of quality and quantity.
If you’ve been involved in erecting residential structures thus far, don’t blindly accept the offer to construct a sports venue. Such an overambitious project can easily ruin you financially if something goes wrong (a worker’s injury or a catastrophic engineering failure).
Is the market ready for a new player?
The expansion of your business that is accompanied by an increase in the final price tag might be too much for some markets. For local and regional construction businesses, this is especially troublesome because they depend on a particular geographical area for clientele.
If there simply aren’t enough interested parties in your region at this time, then consider delaying the expansion. This doesn’t go for construction businesses that are fighting to expand their market to the whole country or even go international to join the top tier construction enterprises.
Growth on a personal level
We’ve already stated that workers should be perceived as leaders. However, you cannot expect the business to grow unless your employees excel as well. More advanced training and new hires should be an integral part of your growth plan. Mind you, the training process should begin well-before you actually start offering new service, so they already have some experience when you accept bigger build jobs.
Growing a construction business is above all a process. This means you need to have the time and patience to wait for the sharp increase in revenue to occur.