Every year there are lists of construction business owners making billions of dollars while others go out of business. Running a business is hard, and it’s even harder in an industry like construction. However, many of these top performing construction businesses have a series of tips and tricks they’ve learned to run a business successfully. These nine tips for construction business owners looking to optimize their business can help you do just that.
One tip that many top performing construction business owners know is to plan. These construction business owners know that if they plan any venture ahead of time, they will be prepared. They have to plan their long-term goals, what they want the company to achieve that year, and how they will get there. Whether they need to increase bidding on projects or scale back, construction business owners know that planning is crucial to optimize their business.
Construction business owners know that they have to protect their business. They also know that paperwork is crucial to the safety of their business. Construction business owners must acquire business licenses, bonds, insurance and other key documents. These ensure that the company can legally operate, and if something happens, they will be protected. While the construction business owners might not personally apply for or seek out these documents, they will assign it to someone who will.
Understanding the Importance of Marketing and Sales
Every business needs marketing and sales. It is how a company increases the customer base and wins projects. Commercial construction is no different. While construction business owners might have a different focus and plan than other business owners, the need is the same. In construction, marketing and sales is responsible for putting together bid packages and press releases that showcase company-wide projects. High performing construction businesses use marketing and sales to target the right prospects for generating revenue.
For a construction business owner to be a construction business owner, they have to have a project management plan in place. Some construction business owners were project managers or construction managers and they might continue to operate in that position. However, not everyone was. Some construction business owners will need to manage multiple construction projects to ensure excellence and repeat customers.
With any business, managing finances is crucial to be able to continue to operate the business. Construction business owners have to consider the cost of bidding, projects, expenses, and all revenue from projects. While construction business owners might hire someone to handle the finances, financial management is how businesses live and die. Construction business owners must consider the cost of bidding, projects, and general operation and the necessary revenue to succeed.
Top construction business owners know they have to continually be recruiting top employees. To maintain top performers, construction businesses have to constantly have an eye out for talent. There are busy seasons and lulls; however, hiring right before the busy season puts pressure on the business to find the necessary numbers. While construction business owners might find top talent in that crunch, more often than not they don’t have the right candidates for the job. Businesses that are constantly recruiting have their pick of talent and can better prepare for the busy season.
There is a qualified labor shortage in the construction industry; however, top construction business owners know that they have to take care of their human resources. They know to listen to their employees and provide a career path. Employees leave for growth and better compensation. Competitive compensation for top employees and the significant growth path for their career aspirations keep them at these companies longer.
All businesses know the importance of customer service and top construction business owners are no different. Customer experience is one of the easiest ways to promote a business. Which is why many top construction companies focus their energy on assuring the quality of their work. And it’s how some companies don’t have to worry about bidding on projects for individual clients. The relationship they’ve cultivated and customer service they provided created a lifelong partnership for both.
Construction business owners use technology since it is an easy way for any business to optimize. Nowadays, there are platforms and software that can track and analyze any data. For construction, where cost overruns can cost millions or billions of dollars, it is a way to increase efficiency. They can track productivity, inventory, fleet, tools, and more. This allows them the ability to get reliable data on their business and make decisions that will benefit them long term.
But it isn’t just project management solutions that construction business owners are using to optimize their business. They can use tools like BIM 360 and other drawing and design tools to increase productivity from a project’s start. With BIM drawings construction business owners can analyze the constructability of a project before they agree to work on it. This extra oversight helps them optimize their business.