Starting your own construction business is a great move since this industry is cashing in $1.731 trillion each year, according to US Census Bureau. The United States is the second largest construction market in the world, and chances for growth are right in front of you.
Of course, competition is fierce and you’ll need to make some decisive steps in order to get ahead of them. This article will guide you through some of the most important steps you need to take if your goal is to grow your construction business quickly and effectively.
Look into your company’s operations
Before you start making strategies for business growth, you’ll need to find answers to some questions:
- Do you have returning customers?
- Is your company financially stable?
- Are you getting customer referrals?
- Do you ask for customer feedback?
All needed answers can be found within your business organization. Conduct a series of honest conversations with your employees, including management, accounting, sales and customer support. Make sure to take care of all internal issues your company might have and pay attention to your customers’ satisfaction. Motivate your employees, learn about leadership and assess your performance on regular basis.
Attract more funding for your operations
Small construction companies usually don’t have what it takes to expand when it comes to finances. They usually struggle to maintain a healthy cash flow, especially if some customers are late with payments. These problems are pretty much normal for any small business, and their owners are forced to look for additional money outside the company.
First of all, you’ll need to implement spending control solutions in order to stop waste and save some money. Once all cracks are corked, you can start thinking about accessing a line of credit. You can also go with overdraft protection, bonding or bank loan and grow the company with those funds. Before you send the application, make sure to conduct a thorough research of potential bonding company or a bank.
Another effective funding window can be opened if you decide to sell a portion of company stocks and pay dividends to investors afterward. There are plenty of venture capitalists out there, and their main motivation is investing in small companies, via buying a share in them.
They usually go online and look for the best dividend stocks, so take some time and get well-educated on this topic. Once your stocks are on the market, you’ll have a chance to fund your company with some venture capital and expand your operations.
Establish great customer service
As mentioned above, besides employees’ satisfaction, it is important to keep your customers happy as well. If they are satisfied, they’ll keep coming back and refer your company to their peers. Great customer support representative should think about your brand and keep clients informed and happy. Customer support team should also always ask for feedback so you can know which aspects of business you need to improve before expanding.
Marketing should be a priority
While all previous steps are important for growth, you should be aware that’s impossible if you’re not expanding your customer lists as well. In order to attract new clients, you’ll need to invest some time and money in branding and marketing. Since everything is happening online, go ahead and create pages on major social media platforms such as LinkedIn, Facebook, Yelp, and Instagram.
All these pages should help you to attract traffic to your business website where potential customers can contact you with ease and learn more about your company. In addition, go ahead and buy a logo which should be painted on all your vehicles, inside the office space, and on every advertising material you come up with.
The steps described above are just the tip of the iceberg, and you’ll need to do a lot more before expanding your construction company. Nevertheless, you should remain focused and motivated, and work hard every day. With a lot of persistence and a little bit of luck, you’ll prevail and scale your company in no time.