The Complete Guide to Managing Construction Companies: What to Know

The construction industry employs nearly 7 million Americans. This industry also creates over structures worth roughly $1 trillion on an annual basis. If you have extensive knowledge of how to build and maintain both residential and commercial structures, then starting your own construction company may be a good idea.

With all of the different construction companies out there, you will have to work hard to gain traction in your marketing. Adequately running your construction business is crucial when trying to achieve success. The last thing you want is to lose money due to the mismanagement of your customers and the projects your company gets engaged in.

Here are some of the things you need to know about successfully manage your construction company.

Hiring a Team of Motivated Sales People is Crucial

As the owner of a construction business, your main goal should be delegating responsibilities. Trying to handle every aspect of running this type of business can be overwhelming. While having a crew of hard workers to help complete construction projects is important, you also need a team of salespeople on your team.

Pitching potential clients is something most construction business owners are used to. This process generally involves making a detailed presentation of what the company in question can do. If you have a team of salespeople who can do this work for you, it will give you more time to deal with existing customers and project management tasks.

Before hiring people for your sales team, make sure they have plenty of previous experience. Knowledge of the construction industry and how to pitch potential clients is a must.

Seek Out Referrals From Satisfied Customers

Some construction business owners think they have to chase cold calls in an attempt to get new clients. In reality, there are much better ways to find potential clients. Seeking out referrals from past customers who were satisfied with your services is vital.

Usually, you can offer the clients an incentive for landing these referrals. Things like discounts on upcoming jobs or even gift certificates can help you entice former customers to help. If you want to find out more about what makes a construction company successful, be sure to read on here.

Successful Construction Companies Are Focused On Providing Great Customer Service

When trying to make your construction company successful, there are a few key components you should focus on. Making sure each of your clients receives the best possible experience from start to finish is crucial. There are tons of construction companies on the market, which means consumers have other businesses they can use.

Some business owners make the mistake of thinking that great customer service begins and ends with them. While it is important for you to engage with customers and make sure they are taken care of, you will team will need to do the same.

This is why training everyone from the foreman to the laborers on a job site is essential. The more your team knows about your expectations regarding customer service, the less you will have to worry about problems occurring. The time and effort invested in this training will be worth it in the long run.

Marketing The Services Your Business Offers is Essential

In the past, word of mouth was all a construction company needed to be successful. However, the rise of the Internet has led to business owners having to compete online for sales leads. If your construction company does not have an online presence, you need to work on developing one.

A large percentage of consumers will start their search for the right construction company online. If you don’t have a website or a social media presence, these consumers will be unable to find out about your company and what you can offer.

Instead of trying to build a website and populate it with keyword-rich content, you should hire professionals. They will be able to get this process done quickly and correctly. Finding a marketing agency that has previous experience in the construction industry is a definite advantage.

Work On Controlling Your Overhead

Losing track of the financial side of your construction business can lead to big problems. Keeping a detailed list of all overhead expenses is the best way to see where wasteful spending exists. Holding employees accountable for turning in expense sheets, gas receipts and other important financial documents is important.

If you are like most construction business owners, you simply don’t have the time to go over your overhead expenses with a fine-tooth comb. This is why hiring an accountant to help out is your best course of action.

Once an accountant reviews these financial records, they can help you devise a plan for moving forward. Having a detailed plan of how to cut costs is vital if you want to avoid wasteful spending and the problems that accompany this mistake.

Increase the Accuracy of Itemized Estimates

One of the main things a potential client will ask for is an itemized estimate. The accuracy of this estimate will affect the profit you make on a particular job. This is why estimate accuracy should be one of your top concerns.

When developing a timeline of completion for this estimate, be sure to err on the side of caution. It is best to under-promise and over-deliver than it is to over-promise and under-deliver. As time goes by, you and your team will learn how to increase the accuracy of these itemized estimates.

Being Persistent Pays Off

Most successful construction companies have one thing in common; the owners of these businesses are determined and persistent. While creating a successful business takes time and hard work, it is worth the energy invested.

Are you looking for more advice about how to run a business the right way? If so, check out the rest of the content on our website.