So, your construction business is doing well, and you’re ready to move to the next stage? This could be the start of an exciting new chapter. But before you head into uncharted territory, it’s always better to have a clear plan.
In this article, we’ll share some tips to help expand your construction business. First things first, though, let’s explore some of the tools that can help you reach your goals.
Tools to help expand your business
There are many software tools that can help power the growth of your construction company. Let’s look at a few must-have options:
- Finance software – As you grow your business, bookkeeping becomes more tricky. Finance software provides full visibility so you can easily monitor your company’s health. This includes detailed reports to help with decision-making and guarantee compliance with regulations.
- Payroll software – You’ll likely need to expand your team alongside your business. Payroll software helps keep your team happy so that payments are made correctly and on time. It also helps cut down on paperwork, so your team can focus less on admin.
- Project management software – It’s important to have a birds-eye-view over your business’ growing operations. Project management software equips you with the tools to oversee projects, sub-contractors, and resources. It also helps you monitor whether projects are on time and on budget to meet your goals.
- Lead management software – Lead management software makes the process of attracting new clients a lot easier, helping you to track down prospects and source more work. The best solutions will even automate the prospecting process and provide lists of potential leads to pursue.
Whilst using software tools like the ones mentioned above will assist you on your growth journey, its also worth noting you can often procure dedicated software for the construction industry, such as construction accounting software for example. Some of the added benefits of using this option for your accounting needs include being able to track costs over long project timelines, manage complex contracts and vendor data, and ensure you comply with regulatory requirements.
Ultimately, the better equipped you are, the easier it will be to grow your business. Make sure you have the best software to support your business before expanding.
Tips for expanding your construction business
But once you’re set up with the right tools, what practical steps can you take to grow your business? Here are some tips to help get you on the right path.
Create a business plan
Expanding your business without a documented strategy is like traveling to a new place without a map. You’re unlikely to reach your destination on time or without frustration. A business plan helps your construction business outline a clear road forward.
When creating your plan focus on answering key questions, such as:
- What are your goals for expansion?
- What costs are involved in growing your business?
- How many new employees will be needed?
- What new equipment will be required?
- Will you seek third-party investment or a business loan?
It’s important to measure your progress once you’ve documented your plan. Choose a set of metrics that align with your goals. For example, your net profit margin should increase as your business expands.
Build a strong team
At the end of the day, your business is only as effective as the people it employs. Your team is likely to grow to support your construction business’ expanding needs. Not only will you need to bring on new construction workers but additional HR and payroll employees to support them. But don’t just focus on headcount, the strength of your team is equally important.
Try to think outside the box when you hire new employees. Don’t just focus on the skills you need today, but any emerging trends in construction. For instance, knowledge of AI-powered tools is likely to become increasingly important as time moves on.
Consider ways you can provide support and get the best out of your team. As you introduce new employees make sure you have an onboarding process that helps them settle in. Ensure that they have channels to ask questions and share concerns.
Lastly, you’ll want to hang onto your most valued team members. Make sure they feel recognized for their hard work. Always try to promote internally where possible, and consider other ways you can reward your employees.
Focus on delivering quality work
Expansion can be a double-sided coin. Handled well, you’ll grow your customer base while maintaining consistent satisfaction levels. There’s a risk though, that you’ll lose the care and attention that you could provide when catering to a smaller audience.
To avoid this scenario, always put the customer experience front and center. While it might be tempting to cut costs by using cheaper materials, it isn’t advisable. There’s a risk that your work might look shoddy leaving customers unimpressed.
Ensure that clients can get in touch easily and receive quick responses. You might also use a customer portal tool so that clients can log on and receive updates on their projects. There, you could post pictures and provide information to help keep them in the loop.
Alongside this, consider ways you can make your customer’s lives easier. For example, use a point-of-sale system that offers multiple payment options. Payline POS solutions allow you to choose from popular options so you can easily meet customer needs.
Spread the word
The goal of expansion is to diversify your customer base and break into new markets. To achieve this you’ll need to spread the word about your business and target the right people.
Make sure that your business is present on relevant social media channels. Try to post interesting content regularly and highlight the work of your organization. Platforms such as Instagram provide the perfect opportunity to share pictures of projects.
As you promote your brand on your website or social media, gather data. Learn more about the different types of people that make up your audience, including their demographics, interests, and locations. You can use this information to carry out targeted advertising and reach the right people.
Specialize in a form of construction
Want to stand out from the crowd? Narrowing your offering might help you pull in more customers. Offering a broad range of services connects you with the widest pool of customers, but it also means more competition. Focusing on a specific form of construction could allow you to become the ‘go-to’ source locally.
Assess your local area to gauge the sorts of jobs that are most in demand. Making these projects the focus of your business might unlock new opportunities.
Serve a wider area
The easiest way to expand your business is to serve more people. But be careful, expanding into the wrong area wastes time and resources. Before beginning any expansion, carefully research potential new locations. Look for areas where there is a clear demand for your services. These areas shouldn’t already be saturated with competitors.
When you find a suitable location make your presence known. Expand your online advertising to cover new areas. Equally, don’t overlook tried-and-tested methods such as handing out flyers.
Remember not to bite off more than you can chew. Avoid tackling too many areas at once so you don’t become overstretched.
Encourage referrals
Sometimes, there’s nothing more powerful than word of mouth. Why not encourage customers to share your business with friends and family? Of course, sometimes, customers need a little encouragement. Here are some of the ways you can acquire referrals.
- Ask customers – If customers are enthusiastic enough, they might not need an incentive. Ask customers to share your business with others at the end of a project.
- Offer a discount – A discount can be a powerful incentive. Consider offering some form of price reduction for future projects to customers who successfully refer others.
- Advertise on completed projects – Ask clients if you can leave an advertisement for a few weeks after a project is complete. This way, impressed locals know who to contact.
Set up a Google My Business profile
Local search engine optimization (SEO) is a crucial part of building name recognition and growing your business. If you didn’t know, SEO is the process of getting your website to the top of local search results. So, if a user searches ‘construction businesses near me’, your name will be one of the first results.
Creating a profile on Google My Business is a free and easy way of improving your local search engine ranking. It also provides potential customers with everything they need to know about your business. Your profile will display your working hours, contact details, and the location of your office.
Alongside this, try to keep up-to-date on the latest trends in SEO. Learn how you can get the search engine algorithm on-side and attract an audience.
Expand your construction business today!
Now might be a golden opportunity to take your construction business to the next level. But before you get too carried away allow enough time to prepare. Equip yourself with the right tools to help your business scale. Here, we’ve listed some examples of essential tools. Remember, you can also opt for an all-in-one solution for convenience.
Once you’ve found the right tools, consider getting to work on our tips. Remember, a thorough business plan should always be the starting point for expansion. Once you’re ready, get to work expanding your business, we can promise you won’t look back.
