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Tips to Grow Your Construction Business

The construction business is finally getting back into shape.

Industry research indicates that construction is in the midst of a rebound after stagnating in 2020. Last year, the U.S. construction business grew at an estimated 1.8%, and is expected to grow by 3.7% this year, and 3.7% annually on average through 2025.

In other words, the stage is set for you to grow your construction business.

There’ll be some bumps, of course. Supply-chain challenges are boosting input prices while making certain building materials scarce, and skilled labor is both in short supply and more expensive than in past years. But there’ll also be help. The 2021 passage of the Infrastructure Investment and Jobs Act will inject hundreds of billions of dollars of fresh federal spending into the veins of American construction.

That rising tide might lift many boats, but the construction businesses best positioned to harness fresh spending are those taking active steps to improve themselves, from their organization to their operations.

The following are a few things construction businesses can do to grow.

5 Tips for Growing Your Construction Business

Don’t Skimp on Customer Service

No matter what kind of company you run, new customers are going to be less likely to seal the deal if your customers service rep is more of a hurdle than helpful, and you can forget repeat business if any problems are met with apathy.

It’s construction. Delays happen. So do cost overruns. There’s no such thing as the perfect project. But the difference between construction companies that grow and those that get by is that the former is more willing to directly address problems – not only making it more likely that they’ll smooth out issues and retain more customers, but also that they’ll take the feedback and incorporate it, making it less likely those problems will occur in the future.

Show Everyone You’re Legit

If you’re keeping your current customers happy, make sure potential customers know it.

A list of services on your site tells people what you can do. But references tell people how well you do it. So do galleries of completed products and reviews.

Be upfront with customers: When the job is done, if they’re happy with it, you’d like them to say something. Whether that’s providing a few words on an industry review site, or an email to you with permission to use their recommendation in marketing materials.

Also, make sure you’re promoting yourself properly. Don’t just put a few pretty pictures up on your website — explain what was asked for, and detail what you did to make it happen.

Diversify Your Supply Chain

If 2021 and 2022 have taught us anything, it’s about the worth of a diversified supply chain.

When you’re just starting a small construction business, it’s natural that you’ll only work with a handful of suppliers (heck, maybe even one). But the more you grow, the more you need to branch out — and the more you branch out, the more you’ll be able to grow. Why?

Because a construction business that gives the customer what they want, on time, is a company the customer will use again and recommend to others. A diversified supply chain allows you to pivot from disruptions — if one supplier doesn’t have the tiles or floorboards you need, you can check in with the other three or four you work with. But without these other avenues, you might be forced to tell your customers there’s a delay.

Have a Great Attorney

You might cringe at this suggestion, but even the most upstanding, honest construction firms have to deal with what is an extremely litigious business. Breach-of-contract disputes come up all the time, whether it’s for delays, quality-of-construction issues or lack of payment.

Trying to face legal quagmires on your own will cost you in the long run — not just money, but precious time spent growing your construction business. Instead, pony up for quality legal counsel, which can not only help you get over hurdles in the road, but also avoid some in the first place.

Hire a Great Accounting Partner

A partner that understands the ins and outs of running a construction business — whether you’re in developing, engineering, architecture, contracting, you name it — is pivotal in adding more runway for growth. McManamon & Co. has been serving the construction industry for more than 35 years, and we can help you with anything from analyzing project results to reducing your tax bill.

If you’d like to learn more about what we can do for your construction firm, call us at 440.892.8900 or contact us online today.

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