5 Helpful Tips for Construction Firms within Their First Year of Operations
Posted on September 24, 2019
The first year as a new construction firm is often the hardest. Even if you have already built strong relationships with banks, private equity firms, and contractors, there are a lot of things that can go wrong. The upside is that every successful construction firm started just where you are – and you can be the next top company. Keep reading to get five tips on how you can increase your chances of success in the first year.
- Make Sure You Have a Solid Business Plan
- Focus on Marketing
- Keep Your Expenses Low
- Do Not Skimp on Insurance
- Focus on Networking
If you want an investor or a bank lender to get involved in your company, then you must have a business plan. If someone is considering investing in your business, they need to know how you are going to provide them with a return on investment for them. Once the business has begun, keep the business plan. Make adjustments as necessary but remember that your vision was written down for a reason.
Any business that is starting up needs to ensure they have a good marketing plan set up. You should trust that news will spread via word of mount – but it will not be enough to get you up and running. Create a website that draws people in. Includes pictures of completed projects. Work with a digital marketing company if necessary.
One of the hardest things about starting a business is knowing when to spend and when not to. Yes, you need to hire a marketing firm if you want to get the word out that you are available for bids. No, you do not need to buy expensive coffee for the breakroom. Technology is one of the best ways to keep costs low. Instead of physical filing cabinets, invest in a software that keeps everyone in the loop without missed opportunities that can occur with paper systems.
Another area that you do not want to skimp on is insurance. There are many types of insurance you may need but you do not need them all. The specific type of insurance you will need depends on your company, how big it is, and what type of work you are focusing on. For example, contractor liability insurance will be needed by most construction firms, while other more specialized insurances may not be needed.
One option that is essentially free advertising is networking. Find out where the big players spend their time. Take up a new hobby. Talk to current clients to see if they can refer you. Word of mouth is a powerful tool but in the beginning it is your word that is strongest. Take advantage of it.