As a small to medium-sized construction business owner, we’re betting your number one goal is growing your business year over year. Whether you’ve just started your construction business or have been doing it for years, we’re sharing three tips you can focus on to set yourself up for success now and into the future and watch your construction business grow.
1. Know Your Margins: One of the crucial markers for business owners in any industry is having a good handle on your finances. Know your job — labor, materials, rentals, fuel, permits, etc. — and overhead costs, considered operating costs like payroll/salaries, subs, insurance, office space, and professional fees.
It’s your goal to make a profit. Ask yourself how much profit you want to make, then estimate your work correctly, ensuring the appropriate mark-up so your bids are not too low and not too high. The goal is to make sure you don’t sacrifice your profit to win work and potentially stall your growth.
At the end of a project, analyze your work to determine the profit and loss and if you need to make adjustments on future jobs.
2. Market Your Business: While your reputation goes a long way — both the good and the bad — you can’t always depend on word of mouth and your reputation. Developing a short- and long-term marketing and investment strategy is essential to stand out in today’s competitive market.
Make sure your business number is visible for simple online searches by setting up a Google local service ad. If you don’t have a website, invest in one, even if it’s just a few pages with the necessary information, including why your business is different, the value your customers can expect to get from working with you, and your contact information.
Develop a social media presence, like Instagram, a highly visual platform, and showcase completed projects (visuals go a long way) and include customer testimonials. Instagram is a great platform to showcase your projects and tag the products and services you use, ultimately building credibility with your followers.
3. Invest in Technology: Sticking to the old ways of doing business isn’t likely to help your business grow. One of the best investments you can afford is exploring new technology to help you manage your business. It’s hard to step outside your comfort zone, yet technology can be your new superpower.
As a construction business owner, it’s your responsibility to keep pace and incorporate technology just like you upgrade your equipment. Technology can reduce the time you spend on day-to-day tasks like estimating and project management, meaning more time for the things you love.
Choosing the right technology doesn’t have to be complicated, and it shouldn’t be challenging to use. Buildxact is an all-in-one estimating and project management software platform —quotes, estimates, takeoffs, project management, and cost tracking —rolled into an easy-to-use tool that integrates with cloud accounting software like Quickbooks and Xero.
To learn more about how construction software can enable you to reduce estimating and quote time and easily stay on top of your financials and profitability, book a personalized demo with Buildxact.
