Succeeding in Construction: 7 Startup Tips to Make Your Construction Business Thrive
Wednesday, January 1, 2020, 6:00 AM | Leave Comment
If we take a look at all the relevant assessments, we can see that 2020 will be the year when the construction industry is expected to explode on a global scale. That was something to be expected.
After all, the human population is multiplying at an exponential rate, and the need for affordable housing is present now more than ever.
But what all these things mean for your future startup? Well, the favorable circumstances are definitely there.
Let us see what you can do to leverage these circumstances to your advantage and make your construction business thrive.
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Restrain yourself from excessive bidding
Taking into consideration the projected industry growth, we can safely assume that your local market will become a playground for some very lucrative projects. Although this seems counter-intuitive, you should restrain yourself from jumping at every opportunity that arises. Such behavior can only overstretch your resources. Instead, carefully assess the enterprises that are on the table, choose the ones you are equipped to perform and put in the effort to bring them to completion as soon and as efficiently as possible.
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Pay more attention to data
All great market movements are accompanied by great turmoil. The best thing you can do in such circumstances is to base your future decisions on cold facts and thorough analyses. Also, the construction industry features very high investment risk – a couple of misjudged projects can bury your startup at its birth. So, set your company to be able to collect relevant, up-to-date and quality data from the get-go. This is the only way you will be able to make beneficial, informed decisions further down the road.
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Invest in quality equipment and vehicles
Your goal is not so much to perform as many different projects as possible but to accomplish those that are within your reasonable reach with speed and precision. So, when you set out to buy the equipment and fill in the vehicle fleet, aim for quality rather than quantity. For instance, a reliable Isuzu truck should feature all the power and versatility necessary for transporting heavy equipment without sacrificing comfort. Also, it makes a far better purchase than a couple of smaller specialized vehicles.
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Outsource all the duties that are not vital
Doing the construction work and acquiring all the necessary equipment is expensive and complicated enough even without trying to develop all the business departments in house. What departments are we talking about? Well, things like human resources, accounting, marketing, etc. Outsourcing all these departments to experienced companies will make your business far more efficient, nimble and scalable. External services can be easily purchased and canceled. Internal infrastructure? Not so much.
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Be conservative with the assessments
Bidding for lucrative projects can make you hasty and lead you to make not entirely realistic promises. Of course, such practice can benefit your company in the short term only. Instead, put your focus on reliability and approach your clients with conservative assessments that will give you more than enough time to put the project into existence. Seamless expectation management is a powerful business tool that perfectly fits the narrative of the construction industry. Use it to the fullest extent.
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Keep the overheads on the minimum
The construction industry is a very fierce and crowded arena. The only way you can remain solvent on a monthly basis then is to make your company as competitive as possible. Since making savings at the expense of materials and labor is out of the question, the only option you are left with is to try to keep overhead costs on the bare minimum. Downsizing the offices, moving the important documents into the cloud and assigning the administrative staff to telecommuting positions all seem like a good place to start.
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Pad yourself with insurance
Finally, paying various insurance rates may seem like an expensive move in stark contrast with the reduction of overhead costs we have just mentioned above. But you have to keep in mind that the construction industry is inherently dangerous and open to accidents. In such circumstances, even a minor human error can create a crisis that can easily put an end to your thriving startup. A comprehensive insurance plan is the only way your small business will be able to deal with these unfortunate events.
We hope these few tips will help you to steer your startup in the right direction and secure it a promising financial outlook. As we mentioned in the introduction, the construction industry is expected to undergo significant growth in the following years. How well you will be able to use these favorable circumstances will depend entirely on you. If you fail to jump on this bandwagon, rest assured – someone else most certainly will.
This article was written By Mike Johnston
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