What happens when too many construction firms mushroom in a place? They get involved in a rat race fighting for share of market that is increasingly getting limited and saturated. The same is taking place in the UK with numerous construction companies trying to outdo one another for limited number of construction projects. Some succeed, others don’t while there are few who succeed more often than not. The secret: they know how to differentiate themselves from competitors and offer better value.
Here are few tips to make you as successful as those few are:
1) Find your niche:
Big firms can afford to be all things to all people. You can’t. So find a niche or two to focus on and you’ll be surprised with your own performance.
For example, home remodeling will soon surpass the new home construction market. In some areas, school and healthcare construction are up 200 percent. Public works is still strong in many markets for many years to come. Get on at least five new bid lists in the next two months for new projects not in your normal comfort zone.
2) Get Online:
Gone are the days when people at least most of them used to phone or ask around to get their construction needs met. Not anymore, they now trust google to do the searching for them. And not being online means missing out on all those potential customers. Getting a construction website of your own widen your market reach helping you generate more business.
Networking is essential. Reach out to your community and seek inputs from your competitors, bankers, subcontractors, suppliers, and above all customers. It’ll help you figure out where you stand and how to move on from there. Maybe you can bag a construction project or two as a byproduct of such eventful meeting.
4) Learn to turn risk into opportunity:
If you don’t take risk, the risk will ultimately take you. In this swiftly saturating market, it’s always a good idea to invest in risk-cum-opportunities that promises to deliver high rewards in future. Find some depressed real estate to buy, upgrade it and then rent it out. This can add to your workload and boost your long-term bottom line. Developers need more equity today than in the past to get their projects financed. Offer to invest some of your working capital, savings, labor, or materials in your customer’s stalled projects to get them going.
5) Add Good People:
Keep evaluating your employees. This is the only way to get rid of rotten apples that are sucking the life out of your fledgling company. Reward the good ones with hike in rank and salary and they will reward you back with improved showings. You must also think of hiring fresh talents with great potentials. Good construction employment agencies can help you in this.
6) Raise competitiveness, not overhead costs:
Get your team together and ask for ideas to improve efficiency. Hold regular meeting with heads of different department and see how they can help in increasing efficiency and reducing overhead costs in their respective departments. Award ones whose ideas are implemented.