The construction industry in the United States is growing rapidly. With annual spending of more than $1,231 billion, the US construction industry one of the largest industries in the world. But sadly, many construction business owners are not prepared to take advantage of the booming market. Contractors often apply for construction business loans to keep up with the demand and the competition.
Other than applying for a loan, here are five tips (aside from bootstrapping a company), to grow your construction business and take advantage of the surge.
1. Go Online
Most contractors don’t feel the need to go online since the construction business is clearly an offline business. However, most – if not all – of your potential customers are spending the majority of their time online. For this reason, many construction businesses have taken their businesses online. They utilize the power of social media to advertise their business and generate more leads.
The first thing you need to do before going online is to create a website. You can hire a web developer to build one for you, but you have to make sure that it has all the necessary elements in a fully functional website.
2. Get More Funding
Growing your business is an exciting time, but it can also be financially draining. In fact, many small-scale contractors struggle financially when expanding their business. Delayed payments are one of the most common causes of cash flow problems among construction companies. As a business owner, you need to look for ways to get more funding, such as applying for loans and getting overdraft protection.
Before applying for construction business loans, make sure to gather all the necessary documents and research on the best type of construction business loan for your needs.
3. Be A Part Of An Industry Association
Industry associations are a great avenue for contractors to network with fellow colleagues. But joining an industry association can will also help develop essential business skills, especially if you’re just starting out in the industry. They can help you write a contract, know how much to charge clients, and more. If you don’t know where to start, here is a list of industry associations you might want to check out.
4. Keep An Eye On Your Finances
Many construction businesses fail because of insufficient funds or improper cash flow management. With that said, you need to keep an eye of your overhead expenses and you need to be aware of the costs before accepting a project.
You can also create a budget to help you stay on top of your overhead costs. This helps you see the amount of money coming in and going out. If the money going out is greater than the amount of money coming in, you need to make some changes ASAP.
5. Build a Healthy Relationship with Related (But Non-Competing) Businesses
Most of your customers look for credible construction businesses online, but studies show that people trust referrals from people they know more than the result of their online searches. You can get referrals from your past and current customers; but to further extend your circle of influence, you can build a relationship with other related, but non-competing businesses. A healthy relationship with electricians, architects, interior designers, painters, etc. will earn you a lot of referrals that will turn into business.
Construction Business Loans For You!
The construction industry is booming and businesses are thriving. Don’t let the lack of funds get in the way of success. SMB Compass offers construction business loans for construction companies all over the United States. To know more about what we offer for construction loans, you can give us a call at (888) 853-8922 or email us at info@smbcompass.com.
