You have a construction business that’s doing fairly well. And now you believe it’s high time to grow it. Obviously, the question that would cross your mind is: how to grow a construction business with less investment? Because, we all are aware that a construction business requires a lot of investment on various things from manpower to materials and outsourcing or buying equipment.
In this article, I will discuss some of the tips that could help you grow a construction business with less investment. All these tips are time tested and proven. Tens of thousands of construction business owners worldwide are using them already with success. You too could try these out and grow your construction business with less investment.
Tips to Grow Construction Business with Low Investment
The tips I’m going to provide would definitely require some efforts from your side. Because very often, investments can be replaced by extra efforts. And you could try this too. Furthermore, you can adapt any of these tips to grow a construction business with less investment, to meet your specific needs. All these tips are fairly simple, which means you could implement them easily for your business.
Make a Business Growth Plan
The first and foremost thing that you need to grow your construction business with low investment is to make a business growth plan. According to SureJob, there are 3 formats for making your business plan – traditional, startup and expansion. Actually, this doesn’t mean that you need to change your original business plan drastically due to less investment. All you need to do is make some changes that would help you to grow without pumping in lots of money in the business. This is possible when you make short-term, mid-term and long-term goals for growing your construction business. Here, it’s important to focus on short-term plans that can fetch you more profits while keeping in mind your mid-term and long-term goals.
Diversify In Low-Cost Construction Business
There’re lots of low-cost construction business ideas. When you have an up and running construction business, it becomes easy to diversify. For example, you can grow your existing construction business by opening a small factory that manufactures concrete blocks for buildings, providing labor services or even retailing construction related material. These businesses can help you save a lot of money on buying material or outsourcing labor from external sources. These low-cost construction ideas actually help your main business to grow by fetching you an extra income.
Build a Superb Team
One of the things that you’ll definitely require to grow your construction business with less investment is an excellent team of professionals. They can actually find ways and means to save costs on your expansion plans using their skills and expertise. At the same time, you need to ensure that hiring a superb team doesn’t add much costs to your payroll. Therefore, look for fewer people that have lots of experience in various fields of construction and whose skills would be useful to make your business grow rapidly. That way, you can actually grow your construction business at smaller costs than it would usually take.
Hire Freelancers if Necessary
Obviously, there would be some critical tasks that your construction company would require when you’re planning its growth. This doesn’t mean that you go and hire a person on fulltime basis for such work. Instead, consider outsourcing such tasks to freelancers. One of the advantages you get with freelancers is that you can hire the best talent in the country on short assignment basis only. And you need to pay them only for the tasks you assign. Freelancers don’t add to your payroll. Instead, they help you to maintain the payroll shorter and trim.
Weed Out Unprofitable Work
A lot of work in a construction business can actually prove unprofitable or fetch small profits. The best thing to do when you’re growing your construction business with less investments is to weed out these unprofitable work and low profit tasks. This involves trimming your business and retaining only those activities that actually fetch you higher profits for low investments. This would definitely require you to rework and adapt your original business plan to make the business grow and ensure it fetches higher profits.
Aim at Preventing Material Losses
There’re lots of areas in a construction business where material goes waste. This translates directly as loss of money or lower profits. Understandably, some material losses or wastage is unavoidable. However, you can curtail or reduce these losses by implementing various practices and rules for your workforce. However, this can prove to be a very difficult task since it means keeping tabs on where the material was used and how much is being wasted. However, over the longer run, your construction business can grow only when you curb such wastage.
Work With Your Strengths
Every business has its strengths and weaknesses. As a construction business that wants to grow, it’s best to work with your strengths while eliminating areas where you’re weak or can’t deliver superb work. Working with strengths allows you to focus on where you should actually invest the money for growing the business instead of spreading it too thin and over areas where your business is weak. Focusing on your strengths and delivering accordingly also helps your construction business to create a good reputation and develop it as a superb brand.
Focus Around Quality
Every construction business that’s serious about staying in business delivers quality work. Therefore, even if you’re investing lesser money on your company’s growth, the focus should be always on delivering high quality work to customers. When your quality speaks for your company, its obvious that it will attract higher number of clients. Superior quality work also translates as excellent word of the mouth publicity for your company and helps reduce advertising costs.
As the above eight tips clearly indicate, it’s fairly simple to grow a construction business with less investment. All it requires is some astute management from your side along with extra efforts that aim at cost savings while delivering quality. Try using these tips to grow your construction business and become profitable.