Growth Strategies for Construction Companies
Whether you’re a small construction business just starting out, or you’ve been around for a long time, there is always room for growth. Even when working a no-growth strategy, be forthcoming. A construction business owner must always think to the future and know how to meet business size goals.
Currently, 5 out of 10 of the fastest growing industries in small business are in construction. If you employ some of these growth strategies, your company can ride the boom.
Create a Long-Term Business Plan
As part of your business strategy, you should make a thorough business plan. This plan needs to outline your business’ objectives, core competencies and define your existing and potential markets. Additionally, find what makes your company innovative.
Think about why customers choose your business. Process this information by interviewing existing customers to get their responses. Once you create your long-term business plan, know you can –and should — make adjustments as you go along. Utilizing your business plan creates the foundation for growth.
Up Your Marketing Game to Increase Sales
Sales tactics and marketing techniques are in constant flux. Staying up to date on the latest trends to market your business is crucial. An effective rule for increasing your sales is to take care of your existing customers. Too often businesses cater too much of their marketing to new clientele, they forget about current customers. Take care of your current customers first and then you can advertise to new clients.
Add New Markets
One way your company can reach new markets is to take on different types of projects. You don’t have to stray far from your field of expertise, but just open the net a bit. For example, if you’re a residential contractor, you could start adding multi-family construction to your list of services.
Another way to reach new markets is to expand your promotional reach. Begin marketing in new geographical locations.
Keep Tech Up-to-Date
Technology is always evolving, so it’s important your business does as well. Modify the services you offer to change with the times. Add new services by implementing new technological advances in your industry when applicable. These will not only intrigue existing customers, but also allow you to reach a broader market.
Follow Industry Trends to Direct Your Next Steps
Keep an eye on all industry trends. These help you avoid struggling niches, while also pinpointing industry segments on the rise. Knowing these shifts let business owners focus on gaining revenues from already surging industries. Additionally, business owners can stay ahead of the game by predicting which construction types will gain prominence in the coming years.
Merge or Acquire Other Businesses
One tactic that leads to rapid growth is to merge with or acquire a complementary business. Before making these decisions, ensure market conditions can support the combined entity. Be strategic as a business owner and make sure both businesses are stable and led by the right people.
The beauty of running a small business is watching it take shape after you’ve spent the time molding it. You can rein it in or let it expand. You have the control, and now you have some tips on how to grow it on your terms.
Contractors, are you already experiencing some growth in your business? Use CLC and get qualified craftsmen to meet your construction staffing needs. Get started here.