Are you looking to expand your construction business but don’t know where to start? Look no further! At Develop Coaching we have personal experience in growing construction companies and have helped many construction business owners do the same.
In this comprehensive guide, we’ll provide the essential steps to take in order to grow your construction company and make it a success. From tips on bidding and pricing to strategies for expanding your services, you’ll find everything you need to get your construction business off the ground and running. So, if you’re ready to take your construction company to the next level, read on to learn more!
Define your target market
If you want to succeed in the construction industry, it is essential to define your ideal client or target market. Once you have defined your ideal client you can then start the work of attracting that type of project or client to your company.
The first step to finding suitable clients or architects is to create an attractive profile on LinkedIn. Here, you can use the search feature to filter for clients or architects in a specific area. You can also use filters to identify active users on the platform.
Once you have identified potential customers, it’s time to start building relationships with them. It is recommended that you target 10-30 architects to get onto their tender list. When messaging potential clients, you can use a pattern interrupt technique. This involves sending a screenshot of a project they have worked on with a comment about what you like about it. This will show your potential client that you have taken the time to research their work and are genuinely interested in doing business with them.
By taking the time to define your target market and create meaningful connections, you will be well on your way to growing your construction business. To learn more about attracting the right kind of client see our article here.
Research your competition
No matter the industry, competition is a reality for every business. For construction companies, it is especially important to have an understanding of what your competitors are doing in order to stay ahead. By taking the time to research your competition, you can get a better idea of what strategies are working for them and what you can do to differentiate yourself and give your customers more value.
The first step in researching your competition is to identify who they are. This can be done by researching local businesses and online directories or by speaking with other businesses in the area. Once you have identified who your competitors are, you can start to look into their strategies. Try to analyze their pricing models, services offered, marketing tactics, and customer service approach.
It’s also a good idea to pay attention to how they interact with their customers on social media. Take note of any complaints that customers make and how the competition responds. This can help you build better customer relations for your own business.
You can also look at their website for information about their products and services. Look for what makes them unique and what advantages they offer over you. This can give you some ideas on how you can improve your own business.
Finally, take the time to network with the competition. Building relationships with other business owners can open up opportunities for collaboration and joint projects. Additionally, being friendly with your competitors shows that you’re professional and willing to work together instead of competing against each other.
By taking the time to research your competition, you can gain valuable insights into what’s working and what needs improvement in your own business. This knowledge can help you create better services and stand out from the competition.
If you want to also compare your construction performance with your competitors, learn how here.
Create a marketing plan
As the UK economy continues to grow, research shows that marketing is projected to account for 20% of GDP in 2022. For construction companies, investing in marketing is essential to ensure success and growth.
An effective marketing plan will help you reach potential customers, increase brand awareness, and measure success. A great plan should include both traditional and digital tactics. Traditional marketing tactics include print materials like flyers and business cards, while digital tactics could include social media advertising or email campaigns. No matter what strategy you use, you should always set clear goals and objectives so that you can track progress and adjust your plan accordingly.
When creating a marketing plan for your construction company, start by assessing your target market. Who are the customers that you want to reach? How do you plan on reaching them? Then create a budget for your campaign and determine which tactics are the most cost-effective. From there, you should develop a timeline for your campaign and set key milestones for measuring progress. Finally, be sure to track your progress regularly so that you can make adjustments as needed.
Set achievable goals
Setting goals is an essential part of growing a construction business. Goals allow businesses to focus on a specific objective and create a plan of action to reach that goal. Without setting clear, achievable goals, it is difficult to measure the success of a business and know where to focus time and resources.
When identifying goals, start with short-term objectives that are realistic and can be achieved quickly. Long-term objectives should have smaller milestones that are measurable, allowing you to track your progress along the way. For example, if a long-term goal is to increase revenue by 20%, identify smaller goals like increasing leads or closing deals in a certain amount of time that will help you reach that goal.
Working with a construction business coach can be helpful when setting goals and developing strategies for achieving them. A construction business coach can help business owners identify their strengths and weaknesses and provide guidance for goal setting and reaching objectives. Additionally, a coach can offer valuable insight and suggestions for ways to create an effective plan of action for growth.
Hire the right employees
Hiring the right employees is crucial for the success of any business. The right employees will bring the necessary skills, experience, and attitude to help drive the business forward and achieve its goals. When hiring, it’s important for businesses to focus on what they need in a role, rather than the vacancy itself. This can help to identify the key skills, experience and qualifications needed for the role, and attract the right type of candidates. It’s also helpful to think of who did the role before and analyze what worked and what didn’t, it will give you a clear picture of what you need to do to avoid the mistakes of the past.
When creating a job advertisement, it’s important to keep in mind that businesses should be balanced. The more specific you make the advertisement, the narrower your candidate base becomes. Instead, try to be as broad as possible and use a variety of recruitment methods to reach out to as many potential candidates as you can. It’s also a good idea to have a 24-month recruitment plan and include it in your business plan to have an ongoing view of your recruitment needs. This will help you to anticipate your staffing needs in advance and allows you to proactively seek out and hire the right people.
Another tip for businesses to attract the right employees is to be visible. Use your staff as an advertisement and let them know they are important, valued and that you are committed to their growth. This will help create a positive company culture, which will attract the right type of employees.
When it comes to recruitment, it’s important to have a clear process in place to ensure that you are attracting and hiring the right candidates. A good process to follow could be:
- Access resumes
- Telephone interview
- Face-to-face interview
- Contact references
- By following this process, you can ensure that you are only interviewing and hiring the most qualified candidates for the role.
Take a look at our comprehensive guide to recruiting for your construction business.
Manage your finances wisely
Managing finances is crucial for the success of any construction business. Having a strong financial management system in place allows you to keep track of your income and expenses, plan for future growth, and make informed decisions. It also helps to ensure that you have the necessary funds to cover costs, pay employees, and invest in new equipment and projects.
Measuring your sales systems regularly is an essential part of financial management. It allows you to track your revenue and identify any potential issues that may be impacting your ability to bring in new business. By regularly monitoring your sales systems, you can identify areas where you need to make changes and improvements, such as by adjusting your pricing strategy or improving your sales process. This will help you to optimize your revenue and maintain a healthy cash flow, which is crucial for the growth of your construction business. Additionally, regular monitoring of your sales systems allows you to adapt to any market changes and trends more efficiently.
Regular financial management also includes budgeting and forecasting, which can help you anticipate any potential financial challenges and plan ahead to mitigate them. Accurate financial management also helps to ensure compliance with government regulations and reporting requirements. In short, regular monitoring of your sales systems, budgeting and forecasting and compliance to regulations are all part of healthy financial management and can help your construction business run smoothly and achieve its goals.
Take care of your existing clients
Taking care of existing clients is essential for the success of any construction business. Satisfied customers are more likely to recommend your business to others, and to return for future projects. In addition, retaining existing clients can be more cost-effective than constantly having to acquire new ones. Here are a few reasons why taking care of existing clients is important in the construction business:
- Repeat business: Satisfied customers are more likely to return for future projects. This means that you’ll have a steady stream of work and a predictable revenue stream, which can help to grow your business.
- Reduced marketing costs: Retaining existing clients reduces the need for costly marketing campaigns to acquire new customers. When customers are happy, they will often spread the word about your business, which can be more effective than any advertising campaign.
- Improved customer insights: By working with the same customers over time, you will build a deeper understanding of their needs, preferences and expectations. This can be valuable in developing new products and services, as well as in identifying new business opportunities.
- Better customer feedback: Clients who have worked with you before will be able to give you valuable feedback on how your business can improve. This can help you to identify areas where you need to make changes and improvements, and will allow you to respond to customer needs more effectively.
Taking care of existing clients is essential for the long-term growth and success of a construction business. By retaining satisfied customers, you’ll be able to build a loyal customer base and reduce the costs of acquiring new customers, while also being able to identify business opportunities and make improvements.
So in conclusion in this article we have covered a few areas to focus on to help grow your construction company. Take a few minutes this week to assess how your construction business is doing in these areas:
- Working out your target market
- Understanding your competition
- Having a solid marketing plan
- Setting goals
- Attracting a strong team
- Managing your finances
- And taking care of your existing client
If you are interested in investing in the growth of your construction company in 2023 then reach out to us at Develop Coaching. We have experience in helping multiple construction companies reach their financial and growth goals through our Develop Mastermind course. Get in touch for a quick chat to see how this course could work for you and your business.