Published April 3rd, 2023
Companies don't just grow on their own. Learning how to grow a construction business requires a plan, a direction, and a vision. And they all need to come from the people at the top. Your vision and direction are contagious, whether good or bad. You need to develop a plan you can believe in if you want to lead your people toward success and a growth mindset.
Successful companies require strong leadership and a clear vision. Here are some things leaders destined for growth are doing.
Keep Good Books
If you plan to secure larger bonds or secure financing for projects, you can bet the surety or lender will want to see your accounts receivable, accounts payable, bank statements, and other financial documents. If your version of accounting is a glove compartment full of receipts in your work truck, you are definitely getting looked over for those bigger contracts.
Having a handle on your business finances is essential for growth.
Cash Flow Management
Manage your cash flow by paying attention to these 7 areas.
- Track your cash flows. Keep up-to-date records of your income and expenses and analyze them regularly.
- Create a budget. Estimate your income and expenses for the upcoming period and create a budget. This will help you plan for any potential cash flow issues.
- Monitor your accounts. Check your accounts regularly to make sure that you are staying within your budget and that no unexpected expenses are draining your cash flow.
- Collect payments promptly. Make sure to collect payments on time and follow up with customers who may be late in paying their bills.
- Reduce expenses. Look for ways to reduce unnecessary expenses and improve the efficiency of your operations.
- Get financing. If you need additional cash flow, consider taking out a loan or seeking out other financing options. Managing cash flow often involves leveraging external resources for project expenses. If you solely rely on your own finances, you may not have enough.
- To ensure you protect your lien rights and get paid in a timely manner, it is important to be aware of the routes to take and deadlines to meet. Being proactive and having a plan in place to protect your lien rights can help ensure you don't lose out on money due to complications with cash flow.
Hire A Great Lawyer
The bigger construction and development companies have entire legal teams to support them, so without an excellent construction lawyer, you may find yourself at a disadvantage.
Have Policies In Writing
Establishing clear policies will provide your business structure, eliminating any guesswork and reducing the chances of errors and oversights.
Treat Employees Like Family
Treat the good employees like they matter to you — and let the bad ones go.
Your employees are the cornerstone of the business - they are irreplaceable, and their value cannot be overstated.
Excellent Customer Service Skills
To build trust and loyalty, you need to be proactive and informative in your communication. Make sure your customers know what to expect from your company, and make sure you remain available to answer questions and provide support. Don't forget to show your appreciation for their business. A simple thank you or small gesture of appreciation can go a long way in building customer satisfaction.
Take a proactive approach to your vendor relationships. In the construction industry, reputation is everything. When word spreads that you don't pay on time, it limits the quality of vendors you can access and will require you to pay a premium for the better ones.
Digital marketing is an incredibly powerful tool for construction companies to stay ahead of the competition and grow their customer base. It allows you to reach out to potential clients who are not actively looking for your services, while simultaneously allowing you to build an effective web presence.
Businesses don't plan to fail, they fail to plan. Following these best practices will ensure you build a strong reputation and enjoy steady growth. For more help planning the big things in your future, contact us for a free consultation.