Starting a new business in any industry is hard and the construction field is no different. It involves more than just a strong work ethic, the right tools and a hi-vis work jacket. To succeed in the construction industry requires a lot of extra effort to ensure you are better than the sea of competition.
The construction industry is a highly competitive one. Over $360 billion in revenue is generated by the industry, accounting for around 9% of Australia’s Gross Domestic Product. Construction is expected to grow at a rate of 2.4% per year over the next five years, which will lead to even more small businesses wanting their share.
To ensure your construction company is growing and developing as it should, there are a number of factors to consider, including:
Forge Relationships With Larger Companies
The David v Goliath approach isn’t always going to see the little guy emerge as the victor. In order to be successful, it is often essential to work with the larger companies, instead of against them. Developing relationships with big contractors can boost your business and spread your name throughout the community. Get in touch with larger contractors that might need your services as a subcontractor or a partner, and ask them how you can become a preferred supplier. There might be a few phone calls or even a lunchtime chat, but it’s a great way to get a steady flow of business.
Build A Strong Team
Whatever industry you are in, your people will always be your greatest asset. You are only as good as the people you employ. You need to hire reliable, skilled and knowledgeable people. By rewarding your hardworking and reliable employees, your company will retain its best employees. You have to invest time and money into your people if you want to earn more business. To do this, you’ll need to invest in the necessary equipment and technology to meet their needs, train and upskill your employees, and actively market your company.
Find Your Niche And Become A Specialist
Specialists are trusted and people are willing to pay more for them. Your business can stand out from the competition by finding a niche market or by specialising in a field. If you think you are better at being a general contractor, that is fine. Alternatively, if your team is an expert in masonry, you could subcontract masonry work. By doing so, you’ll be able to position your business, attract high-paying clients, and boost demand for your services. You should make sure your online profiles and SEO are updated once you identify your niche, so you are more likely to be found in online searches.
Stay On Top Of Technology
Even though most construction firm managers know what is going on in the industry and are committed to their work, they still choose to stick to old methods of doing business rather than exploring new technology.
An organisation’s internal communication has been proven to improve vastly with cloud-based platforms, for instance. That way, you can keep working even while travelling, saving time and money that would otherwise be wasted on travel.
A new generation of heavy machinery and equipment is transforming the way construction is done. Keeping up with technology changes is an important part of owning a construction business. The investments that construction firms make in new technologies generate profits, so don’t be afraid of technology.
Establish Sustainable Practices
The concept of sustainable construction emphasises the use of renewable and recyclable materials when constructing new structures as well as the reduction of energy and waste consumption. Sustainability is primarily about reducing the industry’s environmental impact.
Approximately 36% of global energy consumption and 40% of CO2 emissions are attributed to the construction industry. Almost 90% of consumers want their brands to show they are being sustainable, so developing environmentally friendly operations will help you secure much more business.