Posted on: December 6, 2018
The 2009 recession left many individuals without a job, businesses without customers, and an economy in ruins. Nearly every sector and industry were affected by this crippling recession. The construction industry being no different.
It has taken many years to rebuild the economy and revitalize the job market, but now businesses are booming, and employment continues to grow.
According to the Bureau of Labor Statistics, it is projected that roughly 7,263 construction related jobs will be available in the year 2022. This number is up from the recorded 5,640 jobs back in 2012.
While the future of the construction industry looks bright, how do you know whether to expand YOUR construction business? Many industry professionals underestimate what it takes to grow their business. They often believe that because the industry is growing, so should they. Sadly, this is not always the case.
As favorable as growing your business sounds, it is not always the best option. While expansion may be appealing in terms of potential profits, there are many other variables to consider before making the final decision. Along with growth comes an increase need for employees, increase liabilities, and more risks. According to Business.com, the following are a few things to consider when deciding whether to grow your construction business.
Is Your Business Ready for More Work?
First, determine if your business is ready to handle increased responsibility. Ask yourself the following.
Is the business making steady profits?
Do you have repeat customers?
Do you consistently receive positive customer feedback?
Are you retaining employees?
Answering these questions will help determine if your management team is able to handle the extra workload needed to keep your operations running smoothly. If your team of employees is not capable of taking on more work, you may need to consider hiring additional help.
Does Expanding Your Firm Align with Your Firm’s Current Mission?
Next, determine if your goal of expansion and continued growth is aligned with your company’s mission and core values. Additionally, make sure that your training program, safety and quality control, and budget can handle the added workload. Skimping on any one of these areas can ultimately hinder your company’s continued success.
Know Your Core Competencies.
Make sure that you are in-tune with your company’s core competencies. Knowing your company’s strengths and weaknesses will help you to focus on growing solely in your established area(s) of expertise. For instance, maybe your company is best at commercial projects as opposed to residential. Not having to learn a new niche will speed up the growth process while focusing only on your company’s strengths will help reestablish you as a competitor within the industry.
Develop a Strong Marketing Strategy.
Although, acquiring new customers/business is the ultimate goal of expansion, you need not forget about your current customers. Make sure that when you are marketing to attract new customers you are still encouraging repeat clients. Focus your marketing strategy around building and developing a strong online presence. In the technologically motivated world we live in today, this is crucial!
Additionally, be sure to utilize word-of-mouth marketing to build a positive brand image. Your customers can either be your biggest asset or your greatest weakness. Do not give them any reason to talk badly about your firm. This will come back to haunt you when trying to grow your client base.
Growing your construction company can be extremely rewarding. It can also bring about a whole host of new challenges. Everyone in the construction industry knows the importance of having a strong foundation. When looking to expand your business, the same principle applies. Make sure that your foundation is solid before deciding to build upon it.