Growing a business and watching it flourish is satisfying, gratifying and motivating. While successful growth is great, attempts at growth in the construction industry are also one of the biggest causes of total failure. Taking growth slowly and making sure you’re set with a steady foundation to build upon is key to grow upwards and onwards without straining (or even killing) your business.
Consider This: Are You Actually Ready to Grow?
Before you decide to aim higher and grow further, check in with your current business situation to ensure you have the foundation and stability to do so. Ask yourself the following questions to assess the position you’re in and determine the probability of success in your future growth endeavors:
- Do I have a lot of repeat customers?
- What do my past customers think about my work?
- Are past customers referring my work to others?
- How competent is my management with the current load of work assigned to them?
- How confident do I feel in management’s ability to take on a greater workload? Follow-up: How confident does management feel about their ability to take on a greater workload?
- Does my mission statement help my business stand out among the rest?
- Does my company culture follow our mission in all we do?
- Do I have set procedures and systems in place to manage safety, training, and maintenance of work quality?
- Do I have the financial capability to reward my team for increased workload and fund new hires and other new assets?
These questions will unveil how confident you feel in our company’s ability to remain successful through a period of (possibly tough) growth. If your answers to these questions are overwhelmingly positive, then you’re probably at a great place to start growing.
Consider Growing Your Best Asset
A strong place to begin your growth strategy is asking yourself what your company excels at the most and figuring out how you can do more of that. If you already know that your performance is high in this area and the customer response is repeatedly positive, then you can probably handle doing more of it on a larger scale. Instead of trying to expand in unfamiliar territory, stick to something that is familiar and strong to begin with.
Three easy ways to expand your core competency include acquiring a company that does the same kind of business you’re looking to expand upon in a different location, adding a specialty within that already-strong service, or attracting new and higher-paying customers by offering luxury options.
Consider Using Marketing to Grow
Marketing online and offline can both attract new customers and bring back repeat business. In the construction and contracting industries, person-to-person interaction is one of the top methods of marketing. Referrals go a long way, so making a positive impression on one person is marketing in itself. Make one satisfied customer and they may tell all their friends to see you for their future needs.
Consider online ads targeting specific needs such as roof leaks and repairs. Facebook offers great advertising options that won’t hurt your monthly budget too bad. Offline, take your marketing efforts to trade shows, sponsored events, and even door-to-door. Create merchandise and business cards that can be easily passed around to figuratively spread the word.
Consider the People and Capital Needed for Growth
You may need to hire more team members to keep up with the heavier load. Make sure to hire those with experience that can lend you a hand on your way to the top rather than slow you down. Be intentional with your interviews and ask questions that will reveal whether or not they will be able to handle the coming changes within your company. After all, the people can really make or break a season of growth.
You must also consider the financial cushion needed to grow. You’ll need funding for new hires, pay raises, equipment, and other assets. Don’t step up to this challenge if you don’t have more than enough to fund the changes. As growth in construction can be risky, make sure you have enough to fall back on if all else fails.
Consider Growth in Other Ways
Growing your business may mean more projects to manage. You may be hiring more contractors to handle this greater workload. Make sure you set these folks up for success by using the Contractors Institute to help them study for their contractor license exam and pass it the first time! A quicker pass means quicker turnaround to start adding more projects to your workload. Your contractors will be the best in the business and they’ll work for YOUR business.
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