Construction is one of the largest industries in Australia, and with revenues over $360 billion, it can be a very lucrative business. Unfortunately, it can also be a challenging field, and construction companies have one of the highest failure rates. You can succeed in construction, but you need to know how to effectively run your business. These tips can help set you on the path to running a thriving construction business.
Be Selective
Try to make sure that the business you take on is going to be profitable. Simply having more business does not make sense if you are not making money. It can seem counterproductive to turn down jobs, but you want each job to be worth the time and resources you put into it.
Network
Networking is an effective way to make potential customers aware of your business. You should join a trade association and participate in community events. If you are involved in the industry and the community, you are more likely to be aware of new job opportunities.
You can build a network of architects, developers, realtors, and vendors that can refer others to you. Be proactive in making connections, and people will likely think of you when they need a construction company.
Write Detailed Proposals
Detailed proposals show clients that you have carefully considered every aspect of their projects. You can lay out all of the proposed work and give clients the opportunity to address any concerns in the scope or cost of the job. If you agree to everything in writing before a project begins, you can more easily deal with any questions that later arise.
The practice of writing detailed proposals will also help you control your overhead costs on projects. You will be able to plan exactly when expenses will come up and payments will be due. There will be fewer surprises for both you and your clients.
Communicate Effectively
Communication with your clients is one of the keys to customer service. You want to be available and keep an open dialogue with your customers throughout your construction projects. If you actively communicate with your clients, you can ensure that you are meeting their expectations at each step of a job. People will also be more likely to listen to your advice and understand any delays or setbacks. Effective and respectful communication helps ensure satisfied customers and repeat business.
Hire Equipment
The specific equipment you need can change on each job. You might want to buy some items that you use on every job, but construction equipment can be very expensive. For some specialized pieces such as excavator attachments, it will often be more cost effective to hire those pieces as you need them. You will save the huge upfront purchase cost as well as the storage and maintenance costs on equipment that you only occasionally need.
Prioritize Safety
You want to make sure that you have strict safety procedures in place on your job sites and that everyone who works for you understands and follows those procedures. It is also important to ensure that you are covered in case an accident or mishap does happen. You should keep all of your licenses, certifications, and insurance up to date.
Stay Current
Your construction business should evolve along with the latest technology. Many customers will look for a builder who knows about the most recent trends in building methods and materials. You’ll want to be prepared to take on these clients by staying up to date with developments in the industry. A lot of these advancements can also benefit your business by making your work safer and more efficient.
The construction business can present a lot of challenges, but it can also be very rewarding. If you want to run a profitable construction company, these tips can help you grow and sustain your business.
