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How to Grow Your Construction Business in 5 Easy Steps

The construction industry can be extremely profitable if you know how to run and grow your business successfully. More often than not you will find new construction projects around every corner, meaning the opportunity for growth is nearly endless.

In an industry as competitive as construction, you must always be on the lookout for “the next great thing” that will offer your company an advantage over the competition. When it comes to growth, though, there isn’t a one-size-fits-all recipe for increasing construction income. So, how can you expand your construction company and increase profits? Here are some suggestions to help you get started.

We take pride in our customer service at The Surety Place! Give us a call TODAY if you have any questions about your growing business and learn how we can help by providing bonding solutions for any budget or project size. Here are a few steps on how to grow your construction business.

Step 1: Internal Organization

You must do a full review of your company as a whole before you can apply business development practices and ideas. 

Answer the following questions as best you can about your construction business: 

Conducting open and honest dialogues with management, important staff, and accounting heads, as well as being optimistic in the face of critique will enable you to understand the current status of your company and make informed decisions moving ahead.

Keep in mind that if a lot of things go wrong internally, all of your marketing efforts might be for naught. Similarly, if your clients are dissatisfied and aren’t recommending others to your company, in-house adjustments should be the first move toward expanding your construction company. 

You should examine current talents and personalities as part of your internal evaluation and reorganization to ensure that only employees with the relevant abilities and experience are on your team. 

Good leaders are self-motivated and do not require monitoring. After you’ve hired new personnel, be sure to teach them the procedures of your company and inculcate your vision and work ethic in them.

Similarly, you should be aware of your limitations and bring onboard experts who can assist you in doing the correct thing and avoiding costly mistakes. Hiring specialists at Surety Place can also help you get the most out of your efforts and expand your construction company. 

You should also work hard on your leadership abilities and have a solid method in place for recharging your fervor and passion when exhaustion and hurdles sap your motivation. Furthermore, you should develop an accountability system and have someone evaluate your performance on a regular basis.

Step 2:  Invest in Marketing

If your construction company’s ultimate objective is to expand, you’ll need to match that ambition with a marketing expenditure. To attract new consumers, you can’t rely exclusively on your reputation and the quality of service you give. It is critical that you understand that you must spread the message on your own. 

You’ll need a team to design a complete marketing strategy with the main goal of continuing your company’s growth. This should cover both what you want to do on the ground and how much time you intend to devote to the digital realm. You must also consider how you will promote your message, as well as how your online communication will be received and what it will symbolize. When it comes to branding, you’ll want to make sure you’re continually promoting your business. Though it’s always ideal to get consumers by word of mouth (which will happen if you provide excellent service), building a savvy marketing strategy is a promising method to expand your company even further. Simple branding tools may go a long way toward getting your company’s name out there so that people think of you when they need a contractor.

Step 3: Create a World-Class Customer Service Program

Small construction companies thrive when they seek out and identify clients that are a good fit for their goals and whose project scopes are easy to fulfill. Construction firms may also grow quickly if they have great customer service teams in place to assist them to generate extensive lists of satisfied customers who can refer new customers and purchase from them again. 

In order to limit client turnover, you should focus on surpassing the expectations of your present customers if you want your small business to flourish. Retaining repeat customers will allow you to spend less on marketing because you won’t be in the never-ending search for new customers.

Furthermore, providing excellent customer service will promote customer input and allow you to collaborate with current customers to develop future service and product options.

Step 4: Setting up a Bond Line can Give You an Opportunity to Increase your Revenues from the Public and Private Sectors

Setting up a bond line will allow you to bid on municipal projects in the public sector and complete RFQs in the private sector to increase your revenues. A contract bond for performance and payment is ensuring that the project will be finished and typically a requirement for all public works projects on the Federal, State, and local levels and a qualification requirement for most larger GCs, in the private sector, looking for local subcontractors to satisfy contractual requirements. 

Bonding with a surety agency like The Surety Place may also shield your company against the ups and downs of running a business in case something goes wrong. Make sure you’re well-versed in the subject and avoid making any mistakes. Your surety agency can help you secure the right bonds for your project. These construction bonds may include: 

Step 5: Be Smart with Your Business Finances

A smooth cash flow is critical to the survival and success of any construction company. Indeed, many construction companies fail because they are unable to meet the price of the overhead they have already committed to. As a result, you should keep a close eye on overhead costs and determine the cost of each additional business before accepting it. Before increasing your overhead costs, you should conduct a market analysis in the area where you want to work to see whether you will be able to find enough work at a higher price.

Contrary to common opinion, the lowest bidders generally lose out on many construction projects because many clients connect low bids with poor craftsmanship and low-quality materials. As a result, boosting your rates might assist you in obtaining the necessary finances for development. 

However, before raising your pricing, you should perform thorough research into customer attitudes, materials, and craftsmanship, since the increased prices may possibly shut out long-term connections and clients. Your thorough study and analysis should assist you in figuring out a technique to raise your rates without upsetting your customers. For example, you may lower the price of some things while raising the price of others.

How to Grow Your Construction Business in 5 Easy Steps – Advice from The Surety Place

If you want to expand your construction business, there are a few things you should concentrate on, both in the field and in management: align construction timelines to budget lengths, generate accurate estimates, and secure enough operational money to fund bonding and expansion. Small construction enterprises may use these strategies to attract more customers and extend their market share, encourage their customers to spend more money per contract, secure repeat contracts with the same customers, and have their clients spread the word about the quality of their services. 

Choose The Surety Place as your assistant and you have nothing to worry about. We build a relationship with you so that we can genuinely grasp your company goals, no matter how big or little, intricate or tough they are. We provide access, relationships, and specialty programs with multiple “A” rated sureties around the country as one of the industry’s only real experts. We are ready to assist you with all of your bonding needs without the need for appointments or contracts at any time, contact us NOW and we will guide you through the process..

December 7th, 2021