These days, every market is a crowded one, which makes starting a new business challenging. 90% of startups fail, and the number one reason is a lack of interest in the market. It’s not surprising, given that there are over 500 million entrepreneurs in the world.
Those entrepreneurs each represent a business. When you have that many companies and a limited number of industries, it’s not surprising that supply would outpace demand. A lack of demand is the most common failure factor, but it isn’t the only one.
Other common culprits that contribute to business failure include lack of finances, an unqualified team, or poor business planning for the future. These problems arise in every industry, including construction, so you are sadly not immune.
So how can you bulldoze the obstacles that stand in the way of your success? Here are a few strategies you can use to demolish common problems you face as a new construction company.
Bid For Attention In A Crowded Market
With a lack of demand being the number one reason for business failure, it’s obvious that you need to draw attention to your business. Here are some ideas on how to bid for attention in a crowded market.
Be The Base Of Your Business
As the leader of your business, a lot of attention will be on you when people decide whether or not to work with your company. The best thing you can do is make yourself as qualified as possible.
One step you can take now is to become a licensed contractor. To get your license you generally just need to pass the contractor’s exam. Although, some states, like Tennessee, require you to pass more than one exam under certain circumstances.
To find out more about the requirements and study for your exam, you can enroll in an exam prep course. The course will cover what you need to know to earn your contractor’s license on the first try.
Build A Constructive Online Presence
These days, standing out is all about knowing how to use the internet to your advantage. The world of viral content has made many businesses successful, so how can you get on board?
First, you need to build a successful website.
Content should be useful, informative, and arranged in a way that makes sense to the browser. Consider what you’d be looking for if you clicked on a construction companies website and incorporate that information on your first page.
Second, you need to learn how to leverage social media.
Consider offering some DIY videos, how-to videos, or a peek behind the scene at how things get made. Those are popular types of content that’ll be easy for you to work with. Just don’t forget to highlight how much easier their project would be if they let you do it instead.
Finally, don’t forget to connect with other industry professionals.
Having a network of like-minded individuals can help you stay on top of trends in the industry. The internet is an excellent tool, but like all tools, it needs to be used properly.
Prevent Catastrophic Failure Due To Bad Employees
A company is only as good as its employees. That’s especially true in fields like construction that require skilled workers. If your team is unqualified, unmotivated, or accident-prone, the results can be catastrophic.
Luckily, there are tactics you can utilize to prevent bad employees from affecting your business.
Whether someone has 10 months in construction or 10 years, they still need training refreshers. Often, employees with more experience are more likely to take risks because they’ve gotten too comfortable with their job.
In construction, those risks turn into accidents. An accident on-site can result in loss of business, injury, or even death. Update training regularly, and don’t hesitate to dismiss employees who continuously ignore safety procedures.
Have One-On-One Conversations
Sit down with employees who aren’t meeting your company’s standards. Before you have the meeting, put together a list of real examples of issues you’ve had with the employee’s work.
Let’s say they forgot to take the keys out of an expensive piece of equipment. Bring that up, and explain what would’ve happened within the company if someone had stolen the equipment. You would need to highlight the financial implications as well as the safety issues so they fully understand the problem.
Sometimes an open conversation is all it takes to course correct.
Remember to acknowledge and reward employees who are consistently doing well. Ensure that everyone knows what qualities are appreciated, and promote from within. This gives your employees something tangible they can work toward.
These simple tactics can help prevent your construction company from becoming another failure statistic.
Build A Foundation That Can Hold Up The Next Generation
There are three eventual options for the future of a company. Closing the business, selling it, or passing it on to someone else, usually a family member. 80% of business owners choose the third option.
Assuming that you fall into that 80%, here are a few strategic plans you can make to build a business foundation that will hold up for years to come.
- Create a five-year plan. Include growth targets, ROI goals, and sales/marketing plans.
- Decide what role you’ll have when you’re no longer in charge. Do you want to step down completely, or stay on as an advisor?
- Nurture business relationships with contacts who are also in the construction field, and introduce them to the person who will take over your company.
- Build a reputation for quality work. In construction, your work speaks for itself. Make sure it’s screaming attention to detail and quality.
- Bring the person who will be taking over into the business ahead of time so they can gain the necessary experience. They need a hands-on understanding of your industry if they’re going to succeed.
Planning for the future now allows you to put structures in place that guarantee the company can keep building for years to come.
If you build these strategies into your new construction company, there’s no reason you can’t demolish any obstacle you have to face.