Construction and home improvement businesses are among the top new drivers of many local economies. Nowadays, even small- and medium-sized enterprises involved in this industry have numerous opportunities to tap into a wide customer base, secure specialized projects, and profit lucratively. If that’s your business profile, and you’re considering steps to take to level up your profits, your network, and your reputation, here are five of the best general tips you can consider today.
Invest in the right power tools
Tools are the lifeblood of the construction and home improvement industries, and the sooner you can invest in better tools to do industrial-level work, the better. One good example we can give is battery-operated or cordless power tools instead of tools for other motor-driven applications. Cordless tools are the types of tools that can typically withstand alternating speed and torque cycles without excessive heating up. Thus, they are ideal when both power and efficiency are required—just like in construction and home improvement. Therefore it’s wise to invest in cordless tools with efficient miniature motors. This way, you can complete tough jobs with more efficiency.
Set realistic expectations for you and your staff to follow
A note to construction and home improvement businesses experiencing growing pains: you won’t always make money by taking every single job. You can afford to be selective at first about how many projects to take on, following the rule of quality over quantity. You and your staff can adapt your business strategy when you clear major milestones, such as moving to a bigger office.
Be creative about marketing your business.
The great thing about today’s business environment is that you can reach many people outside traditional advertising. Market your business locally beyond listing it on the yellow pages—make sure it’s easy to find through local internet search results and that your contact details and business hours are accurately posted online. Showcase your brand through a functional website, and share things like testimonials from happy customers. It will also help to maintain an active social media presence. The goals to fulfill here are repeat sales, ongoing projects, and customer referrals.
Join a trade association
There are many benefits to joining a local chapter or trade association for construction and home-building businesses. In events like trade fairs and seminars, you can obtain news about the industry (such as market trends or new regulations), check out demos of new technologies, pick up valuable tips on managing contracts and charging clients, and meet potential clients’ fellow tradesmen. Even when you’re not at an event, you can also get online access to valuable new contacts, for example, in a mailing list. Here, you’ll also be able to advertise your services at little to no cost.
Stay on top of your finances.
IssueCommononstruction and home improvement businesses are cash flow and ballooning overhead expenses. Get ready to deal with problems like clients not paying on time or the fluctuating costs of materials. Explore ways to augment your funds and keep your cash flow sustainable, such as loans and accessing credit lines. Also, be very careful about each job you bid for—never place a bid for a job you’re not ready to take. Calculate ballpark estimates as accurately as possible, and don’t wait until your cash situation threatens to put you out of business. To sum it up, grow your business to the point that your cash flow remains positive and you’re handling a possible number of jobs. And don’t forget, whatever business endeavors you take, never compromise your standards, always complete your projects, and always keep your customer’s safety and satisfaction top of mind. Good luck, and happy homebuilding!