Are you ready to grow and expand your construction business? Growth and expansion is an exciting phase in every business. Whether you’ve been in business for years or you’re just starting out, growing your construction company takes strategic planning. To improve your current operations, you need to make sure you have the necessary resources such as manpower, construction business loans, equipment, etc. to handle your growing business. To help you get started, here are six secrets to growing a successful construction business.
1. Find Your Niche
There are different types of contractors – general contractors, plumbing, roofing, etc. If you have an area of expertise, leverage it. Position your company as an expert in your specific niche. For example, if you own a roofing business, your company should be the first that comes to mind when a client needs roof repairs. General contractors can also find their niche by advertising what your company does best.
2. Hire Skillful Employees
It’s imperative that you hire the right people if you want your company to grow. Do background checks and carefully assess every applicant to see if they make the cut. You need to hire staff members that can handle the work that’s assigned to them. Keep in mind that hiring additional employees can be expensive. You’ll need to pay for additional payroll, benefits, and more. Construction business loans can help fund your business so you can hire more staff members without compromising your working capital. Be sure to evaluate your current financial situation before applying.
3. Customer Service is Key
While it’s important to determine whether an applicant has the necessary skills or not, it’s also equally important that they can provide outstanding customer service. Keep in mind that your clients will always remember the service your company provides – from inquiry to closing. It’s crucial to have a team of employees who can go beyond what is expected of them. Your employees should be patient, respectful, and understanding of your clients to ensure repeat customers and referrals.
4. Market Your Company Effectively
When marketing your construction company, don’t just focus on landing new customers. Successful marketing strategies do more than just generating leads and customers; it also includes securing profitable projects and keeping your customers satisfied. An effective marketing strategy also means having a strong online presence so you can communicate with your audience. Keep them posted through email, social media, or blog posts.
Marketing your construction company locally also works. Make sure that your company’s address, contact details, and business hours are accurate and readily available online. It also helps to network within your community by attending trade shows, seminars, and events related to your field.
5. Find Ways to Fund Your Company
Most small-scale contractors don’t have the financial resources to support growth and expansion. Your late-paying customers can also stunt your cash flow. To keep your business afloat, you need to find quick access to working capital. Applying for construction business loans provide you with the working capital necessary for business growth. You can choose from different types of loan products like equipment financing, line of credit, or SBA loans. Talk to a financial expert to determine which type of loan is best for your company.
6. Keep Track of Your Finances
Many construction companies file for bankruptcy simply because they couldn’t cover overhead costs. For this reason, it’s critical to calculate overhead expenses and additional costs before accepting a project. As you bid for a project, consider the costs of the entire project – the materials, labor, etc. You can use estimating software to help you make accurate estimates.
Another way to manage overhead costs is to create a budget that shows the amount of money that goes in and out of your business. If the money that goes out is greater than the amount that’s coming in, you need to start making changes before it’s too late.
Construction Business Loans to Aid in Growth and Expansion
While growing your business is exciting, it’s also expensive. You’ll need working capital to market your services, attract customers, and hiring additional staff members. If you lack funds to grow your business, SMB Compass offers construction business loans to contractors in the United States. With over 20 years of experience, we bring our financial expertise to the table.