If you’ve just started your construction business, you probably have a big vision and an enthusiasm to take on any job you can to get work. But growing a construction business to maximize profit is all about finding what you do best and turning it into a repeatable practice so that you can make the most efficient use of labour, equipment, sales resources and more. If you’re ready to take your new construction business to the next level, consider these tips to hone your business.
Start by casting a wide net
At this stage, you’re probably willing to take on landscaping, snow removal, demolition and more to grow your construction business. Do what you need to do to stay afloat. To stay flexible, consider renting the variety of equipment you need to get a mix of jobs done. Having a rental partner will also allow you to extend your offerings to meet new customer needs as they appear.
Work with different partners
It’s a small world, so get to know the more established construction businesses in your area. After all, there is only so much dirt to move. If you’re reliable and do good work, word of mouth can help your construction business grow. Established partners will already have a steady stream of customers and may have a specific construction need that could provide you with a consistent pipeline of work right off the bat.
Find your niche
As an example, if you work in snow removal you might start out willing to move any type of snow from anywhere. But, as you start to specialize, you might just focus on moving snow in parking lots…and then just grocery store parking lots. What’s your niche? As you gain experience in the market, you’ll start to understand what jobs have more demand than supply. Take note. Then, determine if any of these jobs have the promise to become a full-time business. If you have multiple specialization options, compare potential profit margins to better understand growth potential.
Invest in your success
Once you’ve figured out your niche it might be time to buy your equipment. If you’re renting something for 6 months or more, it can be more financially sound to buy. With the right equipment partner, you should be able to determine a predictable payment plan that will work with your construction business’ growing cashflow. Purchasing will also help you build equity on your equipment that will eventually help increase your profit margin on jobs over time.
A website and online presence can help attract inbound business to you. This means that people who have a need for what you do and are actively searching for a supplier can find you. To ensure discoverability, make sure you have a website that shows up in search results when someone types what you do into Google in your area. If you’ve chosen the right niche, getting your website to rank for these niche keywords shouldn’t be too hard. A website can also help validate your company and show potential customers that you’re real—kind of like a rite of passage.
In addition to search engine listings (like Google), make sure you show up in industry association directories as well. To get started, here are some potential listings to sign up for:
British Columbia Associations
Beyond just listing your business with associations, get involved with them. Sometimes there are even association certifications that can help provide your business with added credibility—not to mention awards. To get your name out there and network with others in your industry, associations often hold events and panels you can join.
What’s the next step for your growing construction business?
Talk to a Finning rep about your rental or equipment purchase needs. We can help you hone your niche so that you can maximize your potential.
Finning is the world's largest Caterpillar dealer, selling, renting and providing parts and service for equipment and engines to customers across diverse industries, including mining, construction, petroleum, forestry and a wide range of power systems applications. We operate in Western Canada, South America, and UK and Ireland.