How to Effectively And Easily Grow Your Home Construction Company
Your home construction company and many others like it are critical components of the U.S. economy. Did you know that the construction industry contributes about four percent of the U.S. GDP?
During the first months of 2019, GDP from construction was approximately more than $642.8 billion. While far from the record high of $794.5 billion in early 2005, it’s above the 2005 to 2019 average of $629.67 billion. The market is expected to continue thriving, too.
These statistics point to an accepting environment for those growing or starting a building company.
Is It Time to Expand the Reach of Your Home Construction Company?
If you’ve been running a successful home building company for a while, you may be considering expansion. Growth is good, but be careful not to grow too quickly.
Leveling up already successful construction business models don’t always work out. Some practices that make sense and fit together perfectly right now may not translate on a bigger playing field. You may want to wait until you have the experience and resources to keep your business running smoothly while transitioning to a larger stage.
How Do You Encourage Business Growth While Running a Successful Building Company?
There are best practices to follow when growing any business venture: Be careful with your finances, be prudent about risky opportunities, be ahead of your competition, and be open to change.
Below are more tips that may serve you well and help you lay the foundation for effective and easy growth. Here’s all you need to know about growing a building construction company.
1. Maintain a Healthy Core
Healthy growth comes with a healthy core. Don’t re-allocate time, money and effort for expansion if they are necessary to keep your company at full strength right now. Spreading yourself too thin to support more sales is not a great indication of company health.
Do a comprehensive assessment of your company, too. An in-house evaluation should be your first step.
Establish trust and honesty among your staff members and create an environment that is open to constructive criticism and feedback. Include leadership positions in performance assessments to show that no one is above accountability.
2. Embrace Connectivity and Technology
Does your building construction company use a productivity application or a cloud-based enterprise platform? Using technology and internet-based solutions is no longer optional.
You may be surprised by how much technology can eliminate waiting periods, travel expenses, and manual data entry. You may find your existing staff easily handling more clients.
Instances of miscommunication and misfiling will dip. If areas of your office are devoted to keeping physical records, you may soon find that space freed up for new hires and new equipment.
3. Seek Funding for Higher Operational Costs
You may be lucky enough to have built up a financial cushion to support business growth, but this situation is not the norm. Many small-scale ventures can’t sustain a regular cash flow during the beginning of an expansion—particularly when delays pile up unexpectedly.
To obtain more funding, consider cutting some overhead expenses and optimizing operations. This strategy can only go so far, though. You may need to look into getting a working capital loan.
4. Hire People with the Right Attitude
Your building construction company will eventually reach a point in its growth where you will need to hire more people.
It is tempting to pick applicants with the most work experience. However, it’s more prudent to assess potential hires based on how well they handle workloads and how they interact with clients and staff.
This doesn’t mean that you should hire unskilled workers. You should always look for the best available talent—but your criteria should include more than what can be read on a professional resume.
5. Focus on Customer Service
Running a successful building company necessitates great customer support. Generating more sales and widening your network relies on your good reputation and ability to provide references.
As a building construction company, your interactions with them can coincide with milestone moments for your clients. Satisfied customers will remember you long after projects are completed, and disgruntled ones more so. Make sure that your employees provide quality customer service.
If your clients don’t feel taken care of and valued, you may not grow as fast as you expect. Effective growth runs on both optimized work mechanisms and genuine interpersonal relations.
6. Launch a Marketing Campaign
Marketing your building company can be challenging with several competitors already established in your locale. It’s not impossible, though, with a great reputation and satisfied former clients to back up your marketing campaign.
Consider emphasizing a specialty or marketing to a niche audience. You may even ask your past clients for input regarding what they feel could be a great selling point or utilize them by implementing a referral program.
You must match your ambition for growth with an investment in a professional marketing strategy. You don’t want to work hard to get your company to a point where it’s capable of taking on more work, only to find no clients knocking on your door.
Can Third-Party Companies Help Grow Successful Construction Business Models?
Even massive establishments with sprawling networks and huge workforces may opt to work with third-party companies instead of creating in-house solutions. When in the middle of a growth cycle, it’s more important to concentrate on what your clients expect you to do best.
As with marketing strategies, home staging arrangements, and more, many contractors trust third-party companies to handle warranty plans to go with the homes they build. Residential Warranty Company, LLC offers a variety of warranty products for builders all over the United States. Contact RWC today to receive a warranty quote.