Although there are many, a construction business can still be an extremely successful business. People are always going to need construction, whether they are adding an extension onto their home or doing something with their commercial property. That being said, because of the saturated market, there are a few things you should avoid to make sure your business is successful. Here, we’re going to talk about the 10 things you should avoid in your construction business. Read on to learn more:
1. Don’t Fail To Understand The Regulations Laid Out For This Type Of Business
One thing you absolutely must do is understand the regulations laid out for your construction business in your area. Understanding them is so much more than simply reading them and thinking you have the gist. You have to make sure you actually understand labor, health, and safety laws to prevent legal trouble in your business. If you don’t understand the rules and regulations and you cross a line, this could potentially ruin your business reputation and you could even get shut down.
2. Avoid Letting Your Business Become Hazardous
It’s all too easy for a business like this to become hazardous. There are so many instances in which somebody could hurt themselves or somebody else. Below is just a brief idea of how this may come about as your business goes about its purpose:
- Working at height.
- Moving objects.
- Slips, trips, and falls.
- Hand arm vibration syndrome.
- Material and manual handling.
- Collapsing trenches.
- Airborne fibres and materials.
With the above hazards, your team could physically hurt themselves, and even suffer mental health issues as a result. It’s so important that you have a plan in place for each issue, and that everybody is aware of how to avoid and deal with them themselves. Regularly inspecting the premises for hazards and issues will help, too, as will safety training for employees.
3. Avoid Being A Dinosaur
That is to say, don’t live in the past. You must embrace technology if you want your construction business to be successful and move forward continuously. There are all kinds of pieces of technology that could be used for your business, such as technology to achieve time, cost and quality goal of your projects. You will be able to stay on track and ensure you’re making money as effectively as possible. There are also pieces of technology that can improve control, data integration, and even your communications with your suppliers. Then, there’s cloud computing, which could offer increased access to information when you need it, without having to worry about rooting through filing cabinets or losing an important document. Using management software that could improve your ability to execute efficient projects and increase your profitability will always be a good idea, so don’t do this manually. You’ll save time and do a better job when you embrace technology, rather than shun it. Even this age old industry needs technology now!
4. Avoid Skipping The Business Plan Creation Part
Ok so, you might think that starting a construction business is fairly straightforward. After all, it has been done hundreds, if not thousands of times. That being said, creating a business plan will help you as a business owner. It’ll help you to work out where you want your business to go, and what you will do in certain situations. You can lay out a plan A, B, and C. You can also talk about the types of equipment you will need, such as high quality steel piping, and who you will work with to get your equipment. Not only does your plan hold everything you need to stay productive and successful, it can actually help you to get funding when you need it.
5. Avoid Being Lackadaisical With Records
Record keeping might not seem like much fun, but you’re far more likely to keep your business safe and successful when you keep track of everything. Either do this yourself or have somebody who is well versed in record keeping to do it for you. This will help you when it comes to the end of the tax year, or you experience an issue and you need the right information.
6. Avoid Getting Complacent With Your Clients/Customers
You must offer the best customer service imaginable if you want to be a great construction business in a saturated industry. Building trust is the absolute key to success, so make sure you go above and beyond for your clients and treat them with respect. Be honest, transparent, friendly, and professional. Make sure your team are on board with this too.
7. Avoid Hiring Quick
You might need a great team fast, but you need to make sure you’re hiring reputable, experienced, trustworthy people to join you. If you don’t take your time, you might end up with people who aren't who they say they are, or people who just cause trouble. This will cost you in terms of finances and reputation.
8. Avoid Neglecting Your Marketing
A marketing plan is essential for all kinds of business, even yours. You’ll want to have a plan for things like PR, advertising, internal and active marketing. Unfortunately these days, it isn’t simply a case of build it and they will come. Just because businesses like yours have been around for ages, doesn’t mean you can avoid having a solid marketing plan.
9. Avoid Allowing Your Business To Stagnate By Blowing Your Money
Reinvesting in your business is essential, so make sure you have a plan to reinvest and keep your cash flow at an all time high. Cash flow is king in any business.
10. Avoid Alienating The Local Community
Be active in the local community so you can network and further build your reputation. Be active and give back, and people will think of you when they need something that you offer. This is a great way to spread the word of your services and gain new clients, too.
Make sure you avoid the above and you stand a chance of starting a great construction business.