How to Run a Construction Company Successfully
For many people, running a construction company is one of the areas that you could possibly get into when you are thinking of starting up a new business.
For one, it is likely that a construction business will generally deal with many aspects of modern infrastructure which are incredibly useful to many people in many ways.
Hence, this implies that customers and clients are never going to be too hard to come by.
But it’s also true that construction is the kind of world where you can hope to generate huge profits from a single project, as long as you get your business to the point where you can win those contracts easily enough.
Let’s take a look at how you might make that more likely, by improving your construction business in a number of ways.
Here are some of the things that any construction business is always going to need.
1. A Focus On Safety
The most important thing that people will probably check when they are considering whether or not to use your services is how safe your business is.
It might be that you are particularly proud of your levels of safety, or it’s something you need to work on.
If you think you might need to work on it, then you should make a point to the best of your ability. That alone is something that you will need to focus on from many different angles at once.
On one hand, you should look into using Ranger Lifting for your rigging and safety equipment, rather than relying on brands you don’t know or trust.
You should also make sure that everyone is trained as fully as necessary, and that you are doing everything you can to keep them safe on site at all times.
2. The Right People
This is another thing that you will absolutely want to make sure you are getting right when you are trying to improve your construction business.
A business is only as good as the people it hires, and that is certainly as true for construction as it is for anything else.
Most of all, you will want to try and find people who have been in the industry for a while and have the right knowledge to lead your teams.
Beyond that, it’s about finding people who seem to be passionate and who are likely to put a lot of work in. So, that is absolutely something you should focus on too.
If you can build a team you trust, then your business will be in a much better situation on the whole.
3. Track Record
Lastly, the main thing that anybody will really be looking for when they are seeking a construction company is that there is a proven track record of doing the work well and in good time.
You should, therefore, aim to do this with every project that you take on and every contract you secure, so that you know you are going to set yourself up for the best possible future for your business.
4. Be intentional about your company’s total quality management
One important thing to note for the success of your construction company is the total quality management(TQM). Total Quality Management involves everybody in the organization when generating ideas and focuses on continuous improvements.
Total quality management in Construction helps to maintain the quality of materials, quality of construction workers and also helps to maintain the building standard in line with the National building codes(NBC) regulations (as applicable in different countries) or better stated, the laws and torts.
Often, construction companies are faced with the temptation of purchasing less expensive materials in order to get more profit. You’ve been in that shoe, right? When you were tempted to go for the cheaper materials in order to maximize profit 🙂 .
Funny enough, clients often unintentionally put a construction manager in this situation and expect you to work within their own tight budget.
However, it is very important to keep in mind that often, saving now means spending later.
Therefore, it is vital that you ensure all the equipment you work with is up to the task and can withstand the test of time.
For example, investing in stainless steel screws might be a smart move when working on a location vulnerable to wet weather conditions.
Clients may not be well versed enough in construction to know the difference now, but they’ll certainly notice if things start to rust or break down. They also eventually get to know when and where the right materials are used.
Trust me, you cannot over-estimate the joy and satisfaction a client gets when the right thing is done by a construction company.
I will say such joy knows no bound. This, in turn, helps your company to get good referrals and also keep the relevance of your construction company in good shape. This will also boost its success in winning future contacts biddings.
5. Client’s satisfaction is key to getting future contracts
As earlier mentioned, in any construction project, the Clients’ satisfaction should be a top priority for you as a construction manager of any construction project.
This step comprises two parts.
First, no matter what, you must remain available to your customers. Construction can be a confusing process for those not familiar with it, therefore your clients most times may have too many questions or simply want to be clued on how the construction proceeds.
As a result, the more time you set aside to hear them out and alleviate their concerns, the more comfortable they’ll feel hiring you in the future. The more likely they will recommend you to a friend too.
In addition, a construction manager needs to stay involved in the process of satisfying the client. This may mean personally showing up to supervise on-site or having a builder on site to monitor the work progress of the artisans.
Obviously, you can’t be everywhere at once. Nevertheless, it’s important that both your clients and employees know you will be available to them regularly or as often as you can possibly do.
This will show your customers that they are a priority. It will remind your employees that they need to do their best.
6. Be a good time manager
Time management is an essential component of project management. Your ability to manage time effectively gives you an edge with planning, goal setting and prioritizing.
As a matter of fact, you should never forget, as a construction manager, that every client wants you to strictly follow the time schedule (contract duration) of the project. No client will give you a pat on the back for delaying their work.
Time is life and everyone either consciously or unconsciously plan activities with regards to time. You as a contractor have to respect that.
Yes! I’d agree with you that some client can be so unrealistic with the contract duration and budget. They expect you to deliver at a specified time, yet they are unwilling to add to the budget to make that happen.
This is where your knowledge about communication and good human relationship will come into play. You have to professionally, but in a friendly manner, reach an agreed consensus with them.
You have to give a time that you feel is enough for the job to be carried out with the budget provided. Make sure you deliver at the said time without fail.
7. Be Organised
As a construction manager, keeping everything in order is crucial to running a smooth business. You want to maintain thorough bookkeeping in order to ensure you’re sticking to your budget and, of course, getting paid for your work.
This also means tracking bidded contracts, how much time and energy you need to dedicate to every kind of service you offer. This will prevent you from spreading yourself too thin and taking too many tasks at a given time.
It might seem like more clients are always better. However, that’s only true if you have what it takes in construction equipment, construction specialist, expatriates and the experience to carry out the project.
If you are bidding for a contract without the full knowledge, you may overbid or underbid. It gives you fewer chances of winning the bidding contracts. This results in stagnancy due to a few projects at hand. This can also lead to a possible fold up.
You don’t have to sacrifice the dedication to a current contract due to a new contact you are incapable of. A better option is to employ more professional hands when needed and ensure you are certified to carry out certain projects.
A popular saying goes, “Time waits for no one”. One major thing that has happened so fast like lightning over the past century and this century is EVOLUTION.
Many things changed so fast before you could even say, “Jack!” Technology advancement transformed basically everything and businesses that did not move with the flow were swept aside.
This change did not leave construction companies out of the game. You would agree with me that construction companies are one of the great beneficiaries of technology. Work has been made easier and the seemingly impossible has been made possible in construction.
You would not have been able to imagine what a construction site would be like without technology. It is indeed unimaginable! Human labour would not have been able to achieve skyscrapers without the use of elevators. How about power tools? How about boards or holes drillers?
Without mincing words, technological advancement is a big blessing in construction.
Over the decades, there has been an introduction of various machinery, modification, tools and even software into the construction industry so as to make construction work easier and more smooth. Some of the products of evolution are nail gun, cement mixer amongst others.
However, despite this great change, more innovations are still being discovered to make construction work more easy and perfect. You cannot afford to ignore evolution if you want to run your company successfully.
You just have to move with the tides in order to attract great clients. No one will give a job to someone who takes forever to finish it due to lack of current pieces of machinery and tools when they can get another who will get a very good job done within a short period of time. Even you wouldn’t do that.
9. Find your niche
An essential component to the success of any business is the ability to find the right niche. It is not advisable to ignore this fact if you really want to be successful in your construction business.
Finding your niche helps you to be focused and specific. It helps you to be known for a thing and your clients are certain that you are excellent at that. You are not trying to do everything at once- Jack of all trades.
Are you very good as a small renovation contractor? Or a general contractor? Or your company gives its best when you get involved with buildings for sale or rent and operate? Are you more professional being a real estate developer?
You must be able to effectively decipher the aspect of construction your company is best at. The ability of your company to specialize in an aspect has the potential to increase the level of efficiency.
You can raise charges for works carried out, and deliver more consistent results than when your niche is undefined.
As you know that construction is a broad subject, you obviously cannot do everything in it. However, you can be unique for what you do and be irresistible to clients. If you can clearly define your operational, marketing, administrative and networking effort in relation to your speciality.
Finding and creating your niche also helps you communicate excellently with your clients and employees. This is very vital for a successful enterprise.
10. Build a good relationship with customers
You will agree with me that relationship is everything in business.
For a relationship to work out well, you have to incorporate good and effective communication. You must know how best to communicate with each customer; your ability to do this enables you to earn their trust.
Effective communication with customers helps you keep your customers up-to-date about happenings. This makes them feel appreciated and important.
In addition to the above points, a friend once said, ‘the power of referral cannot be underestimated in businesses. It is possible a customer gives you a contract worth a few thousand dollars but has the capacity of referring to someone that can give you a life-changing contract. This can only happen when you treat every customer honourably.
Other benefits of maintaining a good customer relationship includes the ability to plan business activities for long term success.
If you have been able to build a good relationship with customers, you can predict what business will look like in future. Generally, a good relationship with customers help drive innovation and increase profitability.
Therefore, strive to have an excellent relationship with your customers in order to achieve a successful enterprise.
What is networking?
Networking can be simply described as an act of meeting people and forming a bond that can be transformed into a relationship.
Being able to network effectively is an indispensable acquisition in the construction business. Just as good customer relationships can give a major referral, networking can also earn you a mouth-watering contract.
In addition, a mindset of networking helps you take optimum advantage of many things. Events like conferences, seminars and workshops that align with your objectives.
You should not just meet people and go your way. Take a step further in knowing about them. Know what they do and see how it relates to what you have to offer.
In conclusion, you must be very deliberate about everything you get involved in.
Always remember that quality control and safety are indispensable. Defects in constructed facilities can lead to accidents which may be fatal. You wouldn’t want to risk lives, would you?
In addition, be consistent with the total quality management of your company; do not ever give in to temptation. Ensure you take out time to communicate effectively with your clients; try your best to available to them.
This helps you build a good relationship with them and can be a good platform for referrals. Also, respect the contract duration you both agreed on and work within the budget.
Know how to strike a balance in the technology you employ and management of structures by your company. You should also take cost management and economics, laws and torts into consideration.
Which of these areas do you think you need to improve on?
Do you have an additional tip you will like to suggest?
I will love to hear from you.