Business tips for construction contractors

Construction contractors are a vital part of every country’s economy, but as a rule, they tend to lag a little behind the times when it comes to business strategy – and for good reason. When your entire business is built on, well, building – it’s not always easy to apply your very real-world know-how to an environment where so much is now done digitally. Here are some tried and tested strategies that can help you combine the best of both.

Focus on your strengths, and use the power of the web to exploit them

You probably already know what you're better at than your competitors – but how can you prove this to potential customers who’ve never heard of you before? In the digital age, word of mouth has even greater reach. Whenever you have a happy customer, ask them if they’d consider giving you a testimonial for your website or writing a good review on an easy-to-navigate and familiar review platform like Google My Business or Facebook. If the project was unusual, tricky, or really highlights your expertise, then write it up for your website as a blog post or case study, include before and after photos, and share it on social media. Anyone looking for a similar kind of job is bound to be impressed and get in touch. As an added bonus, this kind of evergreen content is also great for your search engine rankings, as you're likely to use relevant keywords in a completely natural manner without even knowing it!

Direct your marketing efforts at the most lucrative channels

Even if you aren’t thinking of actively marketing a particular service yet, the exercise of figuring out which your most profitable jobs are can be immensely helpful in itself. Take some time to weigh the costs of each type of job – including materials, labor, equipment hire, transport costs etc. – against the final payment you received and work out what your exact profit was. It’s astonishing how few construction businesses fail to make use of this incredibly valuable information when it’s right at their fingertips. Once you have this knowledge, you can direct your marketing efforts at the most lucrative channels and away from jobs that are barely worth it.

Research your competitors and learn where to expand your offering

Doing a little bit of idle snooping when it comes to what your competitors are up to is far from new, but the information age has made it a lot easier! Keep an eye on their social media, online reviews, and mentions made of them online, and figure out what they're doing better than you so you can compete. Consider how you can add an extra tool to your belt, such as offering a brand-new service or a complementary offering to boost your profits on each job. It might be as simple as finding a company that offers affordable forklift hire services that will allow you to take on larger jobs, or forming an alliance with a company that offers something you can’t.

Follow the rules – best practices, regulations and guidelines

There’s such a wealth of information online that it’s now a lot easier to keep up with industry changes, and make sure you're compliant. Aside from protecting you against potential damages, having the right certifications and being a member of the relevant bargaining councils can be a selling point for new customers. If there are online forums and newsletters available that are relevant to your area, then make sure you're subscribed and can keep up to date with the latest news.

Streamline your accounts receivable

Cashflow problems are an issue for every business, but they can be really crippling for construction contractors. When you're unable to purchase the materials you need to complete a job or pay staff wages, you're unable to take on new work – and so the cycle perpetuates itself. Many banks and other financial services providers offer a line of credit or advances against invoices or purchase orders for construction contractors, and these can be very helpful – just make sure to do your homework online and ensure you're getting the best possible deal. Another option is to offer a discounted rate for faster payment - and this way you also manage to avoid getting into debt. Of course, boosting profits and cutting back on expenses so that you can build an emergency fund of your own that actually generates interest will always be first prize!

Getting familiar with the ways the online world can help your construction business might not be comfortable at first – but it’s definitely, definitely worth it, so give it a go.