The topic of growing a construction business is absolutely massive and touches on so many points within a business, marketing, sales, management, resources and so much more but will we be covering the points which are massively important, but not so widely discussed.
This article is for both the start-up business but also for those looking for that next step of growth or expansion.
We will be covering a quick top 10 tips on how to grow your construction business.
🌟 Tip 1 - Who are we?
You need to be able to know and say exactly what you and your team do.
It is often that we find businesses trying to manage different aspects of construction with no clear direction of what they actually do.
Are you a commercial M&E outfit looking for office floors and plant rooms or are you a plumber and heating engineer for the domestic market? You need to know what you want to do and then focus on the path that allows you to reach full potential.
🤼 Tip 2 - Who does what?
You need to develop a strong grip on who actually does what within the firm. Who is doing the paperwork? Who is doing the Ops side? We often see this become out of control as a business gets larger. The original owner is used to handling absolutely everything themselves, so they find themselves still trying to manage everything even after putting the team in place. If this is happening, you need to have an honest conversation about the roles and duties of your business.
🏋️♂️ Tip 3 - Lack of team control
Do you ever feel like no one does anything unless you are there? This is often to do with your system, or more so, lack of it.
Proper systems need to be in place so that employees know exactly what to do with every job or task without anyone relying directly on you. So when that new client comes in, your team is able to take them through the entire sales journey all the way to the final invoice.
Introducing these systems will provide lots of answers for your team, additionally showing any bottlenecks that are holding you back.
🚧 Tip 4 - The wrong type of work
Some directors we work with come in and they are working extremely hard working and are passionate about what they are doing, but something is just not working.
This can be down to taking the wrong type of work and take up time and resources which could be spent in another area of your business.
📣 Tip 5 - Lack of communication
Learn to talk and discuss with your team, did you actually earn a profit on that last job? What is your accountant saying? Is the marketing and quoting going okay?
You are probably doing so much right, it just needs a small shift in communication to align goals, identify bottlenecks and increase efficiency.
💪 Tip 6 - Keep at it
The idea is to reach consistency. If you are running around like a madman then something is going to go wrong. You won't enjoy it and you will lose motivation and the purpose of why you started this fades.
We need to be tested but we also need the right balance so we are also getting a return from job satisfaction and money actually coming in. If this balance is not happening, then just take a moment to sit back and think about replotting the path and getting back on track.
💸 Tip 7 - Understand your finances
It is crucial to understand your finances, no this does not mean you have to be doing your own bookkeeping, but to be in control.
For example, when some businesses get their corporation tax bill, it wipes them out and they cannot really see what is the point of doing this, worse, they just carry on living the same cycle. There is something to learn here, start seeing the pattern in real time and in year 2, you'll be up in profit and you will know about that tax bill coming and will not only have the money set aside but know exactly what you can do to knock it down.
It can be so painful until the rules are explained and that is where the frustration comes from. It's not you, you're playing a game and no one told you the rules.
📍 Tip 8 - Know your area
If you are a local outfit, it's important that you know it. You have to learn what your area is, eg a 25mile radius and then you learn how to dominate it. The secret is to think of it as not what you are now but what you could be in year 6-7. You will then be into absolutely everything, from the football teams to the local schools, everyone knows your name.
If you need help with this, the PR team at Saint Global are doing this all day, so they know your trade and everything is done very personalised to you, your business and the local area.
📚 Tip 9 - Tax planning
When was the last time you sat down with a Tax Advisor? I say this because construction directors just don't, but why not?
We should be and if you are a Saint Client then they will help you with this, they know your business and it does not matter if you're not turning over a lot of money, its a start and then that little decision to lease the van at the right time did in fact really help cashflow. You get your mojo back and as you grow, you're constantly planning and seeing it happen which is so motivating when you put your boots on.
🚧 Tip 10 - The most important asset
The final tip already... But wow could we keep going!
This one is the most important tip, it's about the most important asset that the business has. You!
It's important that you start taking care of yourself and putting yourself first. Yes, getting where you are now might have been painful, but it has made you who you are and you might just need a little bit of polishing to bring out the good bits and smooth out the bad.
🎉 That's a wrap!
I hope you found this useful! This article was brought to you by the Saint Trade coaches, who are working with directors across the UK to detach from the past and accelerate into your future for both you and your business.
If you would like to go over anything we discussed within this email, please let me know by simply getting in touch via this simple form.
All The Best,
The Saint Trade Coaches
Frequently asked questions
This article has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
PS. Whenever you are ready, here's how to grow your construction business...
1. Join our Facebook Group which built completely for businesses within the construction industry. Real people, real support. - Now also available on LinkedIn.
2. Keep up to date with Construction Insider Providing you with industry insight, tips & tricks and much more to make sure you are ahead of your competitors!
3. When you are ready, Become a Saint Financial Group client, and we will provide you with the highest quality solutions to effectively scale your construction business. Book your meeting here!
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