Construction and home improvement businesses are among the top new drivers of many local economies. Nowadays, even small- and medium-sized enterprises that are 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 what steps to take in order to level-up your profits, your network, and your reputation, here are five of the best all-around tips that 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 sound example we can give is that of battery-operated or cordless power tools, as opposed to 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, and are thus ideal for 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 that are 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. Then, you and your staff can adapt your business strategy each time 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 so many people outside of traditional advertising. Market your business locally beyond listing it in 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, continued projects, and customer referrals.
Join a trade association
There are a lot of benefits to joining a local chapter or trade association for the construction and home building businesses. It’s in events like trade fairs and seminars that 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 meeting potential clients and 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
Issues that are common to the construction 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 with loans and accessing credit lines. In addition, be very careful about each job that 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 up to a point that your cash flow remains positive, and you’re handling a feasible amount of jobs. And don’t forget, whatever business endeavors you take on—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!