In the ever-evolving and constantly growing construction business, contractors need to continuously reevaluate their strategies and decisions to keep up with the industry. Persistent improvement and innovation in how you run your business will lead to higher rates of success. Even though you may find one method that works for your, constant adjustments and modifications can create higher margins and profits. Testing out new work methods and trying latest technology and tools can lift your company from average to the best in its class.
While change and innovation are great, remember the foundations of everything you do. No matter what, these foundations will always be the building blocks for your company; you can adjust them and approach them differently, but in the end, you should always stick to them and do what you can to develop each. The most important part of your business may very well be its basic foundations, and you can remember them by the 4 C’s: company strategy, climate, competition, and customers.
Key Concepts You Need to Keep in Mind
The Company Strategy
Start by looking at your company before anything else. Make sure that you have a clear, detailed plan that gets the work done effectively and efficiently. Start with management: make sure that those in charge of your employees (besides yourself, of course) know what the objective is and how to get there. Delegate the work to the employees best suited for each task that comes with it. Also, make sure you and your workers know the deadlines and any necessary directions. You should host meetings for all of your employees so that you can evaluate the work that’s been done, the work that’s being done, and that needs to be done.
Get into the habit of performing job estimates. Accurate job costing reports will provide you with a good understanding of where your business stands. By consistently calculating detailed data and obtaining insight on your expenses and profits, you learn how to do better project estimation—and you give yourself the opportunity to choose higher margin projects and earn a more significant profit.
Also, you should invest in your company and personnel. By investing time into training your employees, you will create much more potential for boosting your profits, as well as identifying your employee’s strengths and abilities.
The owners of the leading construction businesses make sure to expand their qualifications frequently. You should always try to find ways to integrate innovative technologies and new trends into your work. Staying on top of the current fads and remaining in tune with the modern culture allows you to remain the best in the industry.
Analyze the construction industry’s climate. As aforementioned, the best managers are always on top of the current trends and climate of the construction industry. Invest more time into early preparations with important contractors and business partners.
Be aware of the standards in the industry. Know your paperwork policies and safety regulations. Plan and host informative meetings before work begins; discuss all of your strategies, project plans, and timeframes.
Creating thorough plans for projects before they begin according to the industry climate is essential in making achievements through your work. The planning process typically determines the success of the project and automatically decreases the risk of any unexpected issues or problems that may arise during the construction process itself.
Remember that competition matters. There will always be lots of competition in the construction business—and it only increases, especially on the low margin market. Casting high bids is not an option; you need to find your niche and start bidding equal to your competitors.
Even companies that are at the top of their classes must always recognize the competition and try to play the market. Investigate your competition and explore your playing field. Doing so will provide you with the ability to act appropriately to give yourself better chances on the market.
Remember that you should do your best to work efficiently and effectively; track your performance and financials to improve your business routine. If you manage to increase your performance and productivity, you will be evenly increasing your margins—thus you will begin to receive higher quality and higher-paying projects.
The customers always come first. The construction market constantly focuses on customers. If you do not manage to keep your customers happy, you will find yourself falling to the bottom of your class in no time. The best companies do not focus solely on doing more for a lower cost; they also focus on integrating management systems and operating procedures implemented throughout the company.
Very often in this business, companies may find themselves in an unfair situation: clients cannot pay, or they just choose not to. Ensure that you have a process in place for such an issue; train your staff properly on how to handle important collections from your clients.
Keep in mind that regardless of how low your prices and margins are, customers still expect high-quality products and services and timely delivery. Be sure to provide both of these so you can receive positive responses and reviews. Construction companies will probably not go very far without a wide-ranged base of good customer reviews and referrals. Potential customers pay close attention to reviews and make judgments based on them, so do what you need to do to get those positive reviews. Remember that the customer comes first and take into account how you can keep old ones and attract new ones.
The 4 C’s are the building blocks of any construction company. Stick with the basics and build up from there. You can personalize your business and make adjustments as necessary, and as long as you stick to these guidelines, you are sure to reach success!