Build Your Construction Business Into a Juggernaut
Starting and growing any small business is a challenge, but putting down roots in the construction industry is a particularly difficult hill to climb.
Construction businesses have many of the same to-dos as normal businesses: manage a staff, figure out the right marketing message, keep track of invoices. But on top of that, construction companies have to deal with a mountain of legal paperwork, ensuring that they’re properly insured, bonded and licensed. Even normal business aspects such as hiring have added wrinkles – they often have to deal with busy seasons and lulls, requiring them to find the best employees they can out of a frequently shifting applicant pool.
The following are several tips that can help you build your construction businesses into one that everyone calls on when they’re ready to start a new project.
4 Tips for Building Your Construction Business
1. Always Recruit: One of the best general pieces of advice for any business – or individual, for that matter – is to be proactive instead of reactive. It almost pays to be ahead of the curve rather than risk falling behind. This is especially true in construction staffing, which forces business owners to deal with the ebbs and flows of busy construction seasons and slow periods. But you can’t wait until the next project to start recruiting workers, or you could find yourself short-staffed. So first off, always be on the lookout for qualified, quality workers throughout the year so you know where to look once projects start to flow in. But don’t stop there: Make sure you’re also keeping the employees you have happy, not just with competitive pay, but opportunities for advancement within the company.
2. Mind the Numbers: When you’re small and looking to grow by any means possible, it’s tempting to take every job that crosses your desk. But the reality of construction is that while certain jobs are plenty profitable and worth the time, some jobs are truly best left to companies that have the scale to absorb paper-thin margins. It’s vital, then, to know the costs of doing business – not just materials and labor costs, but even things such as the bidding process. It’s also important not to bid projects into the ground just to get work. If you’re ultimately taking losses just to find work, your business won’t survive long anyway.
3. Tech Is Your Friend: Software has changed the way countless businesses do business, and construction companies are no different. For instance, CoConstruct’s project management software allows you to create estimate, build proposals and make bids, and it’s even compatible with QuickBooks. Or you can use Raken’s construction field management app to track time cards, keep tabs on tasks and even manage workplace safety incidents. The future of business truly is technology – and taking your office paperless can help you run your operations more efficiently and save money on office supplies and equipment.
4. Experience Counts: Typically, construction-company owners are going to come from the business, which means if you’re reading this, you know your way around a worksite. But there’s something to be said about having an ally that knows the ins and outs of construction-business management. McManamon & Co. has been serving contractors, subcontractors, architectural firms, developers and engineering firms for more than 35 years, and can provide a wide range of insights to help you grow your construction business, from analyzing project results to reducing your tax bill.
Don’t build your construction business alone – bring on an experienced crew! Call McManamon & Co. at 440.892.9088 or contact us online for the advice and guidance that can take your business from “small” to “sprawling.”
Tags: accounting tips for construction companies, construction, McManamon, small business | Posted in Consulting, McManamon & Co., small business