Managing a thriving construction is not an easy feat. It takes hard work, knowledge of good business practices, accounting principles, regional economic conditions as well as proficiency in the building process. Construction companies will not have a shortage of clients as long as the real estate market is active, there are homeowners who are undergoing their home extension, or if new businesses are being opened. For some smaller constructions companies, the owners themselves manage the business while for larger companies; the owners are more likely to hire managers to run the business.
The handiwork and end product is the main basis for a company’s reputation. The quality of the finished product is highly dependent on the skills of the workers, just as structural timber beams hold up and support a building. Most of the workers hone their skills through on-the-job training. Instituting a quality training program for your employees is a great investment since it is not always possible to entice seasoned craftsmen away from their current employers. Offering a handsome pay, great rewards and recognition program, and making employees feel valued keeps workers loyal and industrious. Important management duties include hiring, firing, training, disciplining and conflict resolution.
Managing the Business End of the Business
Construction bidding is a major part in this industry so a successful construction firm must be able to bid competitively with its competitors in order to undertake a project. The firm needs to manage its financial assets to ensure that the owners and workers are paid and that the Internal Revenue Service gets its share of the earnings. A construction company requires someone to manage the financial aspect of the business and handle correspondence for it to run smoothly. The construction manager must know how to delegate the business tasks so he can devote more time to bidding, client and worker interaction and job site duties.
Starting a new project is quite costly that is why it is necessary for most construction firms and their clients to secure investors or outside financing. To procure tools, materials and equipment, a solid capital must be raised so these can be secured ahead of time. Before seeking construction loans or venture capital, the general manager should be able to write a business plan that projects short- and long-term operating costs and profits for smooth transactions. He should be able to understand the company’s financial status and relate them to the owner or the board even if a finance officer was the one who developed the business plan.
A great manager not only understands the construction process but should also be a good leader who can supervise team in the field including both home extention builders and design. A manager usually delegates the direct supervision to a foreman who reports the current status of the workers. Large companies undertaking a big project may hire a whole crew of supervisors who will report to the project manager, who in turn answers to the general manager. A company, no matter the size, will run more smoothly a workable structure that provides a set chain of command is properly established. A company structure is like a tree, where if the foundations – such as managers are not doing a great job then stump removal needs to be called in so that changes can be made to ensure a new tree can be planted and nourish.
The main source of income of a construction firm is its contented clients and customers. A competent manager is capable of negotiating and compromising with the client for a fair deal such as with tree services. Good communication skills are essential to effective management. An efficient manager can handle clients and any issues that may arise. From providing clients options, answering questions and serving as a liaison to clients, distributors, retailers, and subcontractors, smoothing over the rough spots to keep the clients happy. To be able to minimize conflicts and keep the projects running smoothly, a construction manager should be analytical, decisive and a good problem solver.
But it all boils down to how you can grow your company so that it becomes more profitable.
Are you ready to take on a new exploit? Do you think you can handle the expansion of your firm into new markets or territories? Expanding your construction company needs careful planning and strategy. Before anything else, you must ensure that you will have all resources to handle the additional work in order to tactically scale up your operations.
Here are additional tips to help you grow your construction company
- Build a great team. In this type of business, your crews are your business. Be sure to employ on reliable, knowledgeable and skilled workers. Retain your best employees and encourage their loyalty by commending and rewarding them for their hard work and steadfastness.
- Manage your business, but lead your people. Your people want to be guided, not manage. If you try to micro manage every aspect of your employees’ work they will think you have no confidence in their ability to make good decisions and properly do their jobs. Your employees will follow you anywhere if you are a great leader.
- Invest in your business. In order to earn more, you must be ready to invest time and money into your company. This includes acquiring new equipment and technology for the domestic plumbing services you will be undertaking or providing training for your employees, and actively marketing your business.
- Be selective to be profitable. Taking in more clients does not automatically equate to higher earnings. Ensure that when you take in new projects, it has to be profitable. There is no sense in doubling the number of jobs you work if you aren’t increasing your profits.
- Get the word out. Word of mouth has always been the number one method to market any business and earn more work, including in the construction industry. Satisfied customers are always empowered to tell others about the great work your company does.
- Play to your strengths.It is never enough to be known as a decent jack of all trades. One always takes pride to be known ones specialty such as the best contractor doing gas fitting services. Finding a position market or specializing in a specific industry can set you apart from your competitors.
- Network to earn more work. One of the best ways to make new contacts is to join and be active in the local chapter of a trade association. Rubbing elbows with the market players can be a useful tool to advertise about your services, generate leads and find vendors. Being active and giving back to your community is also a great networking opportunity for your business.
- Quality is king. Never jeopardize the quality of your work in exchange for reduces costs or faster completion of a project. This can be very detrimental to your firm’s reputation. Never compromise your high standards of performing quality work or else you will lose your business completely.
- Change is good. Versatility is essential for a successful construction business. Building and construction can be quite a volatile industry. Willingness to adapt and make adjustments in your business to keep up with the changing trends sets you up for success. If the latest is in architectural timbers then if you have the knowledge and skills for it consider adding it as one of your services.
- Give great customer service. Providing a great customer experience should be prioritized in all types of business. This ensures customer loyalty as well as entices potential customers due to the great feedback shared. This doesn’t mean giving in to all their demands; instead you should be transparent with all the aspects of the project so you can be equal partners in the decision-making process. Communication is the key. Satisfied customers will lead to repeat business and great referrals.
- Be proactive, not reactive. Chances of getting new projects do not freely fall in your lap. You have to proactively seek out new opportunity to retain and grow your business. Do not give up easily. Reach out regularly to the owners, architects and general contractors you find out what future projects they have on the horizon.
- Make smart decisions. Some of our daily decisions may be inconsequential but when it comes to your business, this often means making hard decisions that will impact your success for years to come. Take time to strategize, consider all angles and options, do your research and perform your due diligence before making big decisions regardless of the pressure.