Construction is one of the world’s oldest and largest industries. As a small or mid-sized business, you'll find plenty of opportunities to expand your capabilities and take on bigger projects. But you’ll also face potential pitfalls, make tough decisions, and consider costly risks.
Discover the best practices to grow your construction business and avoid common setbacks.
Tips to grow your construction company
You may be an expert craftsman, but establishing and growing a successful construction business involves just as much work in the office as in the field.
To set yourself up for maximum growth:
Draft a business plan
Conduct market research
Invest in your workforce
Market your business
Focus on field management
1. Draft a business plan
You likely had a plan in mind when you started your business. If you haven’t already, it’s time to put that plan in writing.
Formalizing your business plan benefits your company in several ways. First, you’ll have an official document to refer to whenever you need to make an important decision. If a new opportunity does not fit within your business plan, you may decline to pursue it or adapt as needed. Second, you can share your business plan with key employees and partners to help them better understand the purpose of your business and your operational processes.
Finally, drafting the plan may help you think through pain points that you may have otherwise overlooked. Your plan should include:
Your goals
Your ideal customer
Your capabilities
Your financial structure
Your organizational structure
Growth strategies
Competitor research
A business plan is a comprehensive document explaining who you are and how you operate as a company. The more detailed your business plan is, the better it will serve you in the long run.
If you don't have any experience drafting a business plan, you may consider hiring a consultant or seek examples to help guide you through the process.
2. Conduct market research
The economic landscape is constantly changing, and while you may have goals and objectives outlined in your business plan, that doesn’t mean they’re set in stone. To continue growing, it’s important to conduct market research on a regular basis.
As a construction business owner, you should consistently monitor the market and stay aware of trends and new technologies that could affect your business positively or negatively. For example, you may be a commercial contractor working in an area where your customers are becoming increasingly environmentally conscious. Adapting more green construction practices like pursuing LEED certification could be a viable strategy to add to your business plan.
On the other hand, if you currently serve a township that is experiencing a period of economic decline with little new construction, you may wish to remove that township from your service area to avoid spending marketing dollars without return on investment.
You can conduct market research in several different ways. Hire a third party research service, follow construction news sources, attend webinars, join professional organizations, and network with other businesses.
3. Invest in your workforce
Your workers are your most important resource. Invest in your hiring and training practices to ensure they have the skills and knowledge they need to best support your business.
When you invest in hiring, it is mainly an investment of time. As your business grows and you add new positions to your company, take enough time to thoroughly research similar job titles—including wages and job descriptions—in your local area. Offering fair pay for a role with clearly defined responsibilities will go a long way in attracting qualified candidates.
Even if a position is not new and you’re replacing an employee who resigns or retires, it’s helpful to conduct research to make sure expectations haven’t changed.
Once new employees are hired, provide adequate training to ensure a smooth transition. Create a plan for onboarding and orientation that introduces new employees to core processes and covers any additional information specific to their roles. For example, you may wish to give executive-level employees or employees with strategic roles a copy of your business plan.
You should also consider providing ongoing education. This includes leadership training for your executive team, safety training, and training on new tools and technologies. Identify areas for improvement and professional growth that will benefit both your employees and your business.
4. Market your business
There are many opportunities to build, but your business will likely be bidding against several others for the same jobs. An effective marketing plan can give you a competitive advantage.
If you don’t have any experience with marketing, start with the basics. Make sure you have a company website with a clear point of contact so that potential customers can easily find you and get in touch. Create profiles on social media and review sites and ask happy customers to leave positive feedback or share your links. Make sure you have a logo that is clear and easy to read, and choose brand colors that will make your business easily recognizable.
If you’re ready to invest in advertising, research what your competitors are doing. Are they advertising on social media or search engines? Do they use physical media like print ads or billboards? While you may want to branch out with new ideas, especially as you grow more knowledgeable about marketing, following the example of successful businesses in your area is a good starting point.
5. Focus on field management
One of the most difficult parts of running a construction business is field management. Keeping projects on track becomes more and more difficult the larger your business grows. Investing in scalable solutions like field management software will help you stay organized, prevent delays, and reduce other issues that significantly affect profitability.
Digital tools make vital field management processes like daily reporting, time and production tracking, and safety and quality management easier than pen and paper or spreadsheets. Instead of having to manually collect, organize, and share data, software allows your workers to quickly capture info on their phones or tablets, then automatically organizes it into actionable insights.
There are many software providers that focus specifically on the construction industry. Research your options and find one that works for your small or mid-sized business. Prioritize features like ease-of-use and simple workflows to promote higher adoption rates and see more immediate results.
Grow your construction company with Raken
Raken’s construction management software for small business has all the tools you need to keep progress on track in one easy app. Say no to complicated workflows and busy screens—Raken’s streamlined design is built for the field, turning the most time-consuming tasks into the easiest.
You get:
Daily progress reports - Publish professional, branded reports—with timestamped photos and videos—in minutes
Time & production tracking - Closely measure progress against estimates with automated insights
Safety & quality management - Identify and quickly resolve risks with managed checklists, observations, and more
Document management - Upload, share, edit, annotate, and organize company forms and documents
Get all the info you need from the field, and still go home earlier at the end of each workday with Raken.