What does it mean to scale a construction company?
Construction companies, especially those using construction management software, can often scale more effectively than their competition. But scaling is not just taking on larger projects or more business. It is about managing cash flow, and scaling where it counts most, your net profits. In this post, we will discuss 7 was you can grow your construction company.
Maintaining healthy profit margins, excellent customer service, and keeping up with industry trends can be a challenge for a small construction company looking to scale. The following tips can ensure success while you are growing your business.
- Invest in the future with technology and software
- Build a strong team
- Master your finances
- Plan for success
- Develop customer relationships
- Optimize your processes
- Diversify your services
To learn more about how Projul helps construction companies scale their business schedule a live demo today!
1. Embrace the Future with Technology
Welcome to the digital era! From smartphones to drones, technology has revolutionized the construction industry. Leverage this advancement by investing in project management software, construction estimating tools, and digital accounting solutions.
Technology allows a construction business owner to manage job sites from anywhere without having to be physically present. Projul is the top construction management software on the market for this exact reason. Projul has a full-featured mobile app, that allows you to estimate quickly, invoice accurately, document change orders, and take other steps to bring in more revenue right from your fingertips.
By using Projul your construction company can separate itself from other contractors who are stuck using paper, spreadsheets, whiteboards, paper time cards, and other outdated methods that are still the norm in the construction industry. Software is one of the fastest ways you can grow your construction company effectively. Learn more about how construction management software helps companies by following this link.
2. Build a Strong Team
Think about it, would you trust a house that’s built on a shaky foundation? The same applies to your team. Your workforce is the foundation of your company. Invest in their skills and capabilities. Provide ongoing training, and don’t hesitate to bring on broad skilled workers who can help your company scale. And remember, as you grow, you’ll need specialized roles like project managers and estimators.
Construction companies really start to take off after hiring a project manager and office admin in addition to skilled labor. If you are a business owner, this is an important step in successfully scaling. This will eliminate the time construction business owners spend on the phone, at a screen, and managing contractors hands-on, and allows you to take your small construction company to the next level!
This is another area where using Projul can shine. You can receive real-time updates from the field and office, including pictures and daily updates from anywhere. This ensures you still provide quality work and keep your team accountable, all while freeing up your time to focus on scaling and increasing profits.
3. Master Your Finances
Cash flow, profit margins, overhead costs. If these terms make you cringe, it’s time to roll up your sleeves and dive in. Having a solid grip on your financials is crucial to your growth. Consider using software that allows you to easily track job costs without the accompanying headache.
Projul can help you navigate the financial landscape and avoid potential pitfalls. Just because you are doing larger projects and cashing larger checks from your customer DOES NOT mean you will make more money. Larger projects and more projects lead to large overhead and potentially uncertain cash flow. Projul uses built-in job costing that ensures you build a budget and track profit margins. This is the most underrated aspect of taking on bigger projects and more work. With Projul, you don’t need a doctorate degree in accounting to make sure your company can successfully grow.
4. Lay Out Your Plan
You wouldn’t start a construction project without designs and plans, would you? The same goes for scaling your business. Develop a strategic plan that outlines your growth objectives and the steps you need to get there. Analyze your market, identify your strengths and weaknesses, and make a plan for overcoming obstacles.
To grow a construction company and start taking on more jobs, it is important to have project plans, an outlined budget for every new project and a target schedule in place. This allow you to build with confidence and make sure all of your projects are on track to succeed.
5. Nurture Your Client Relationships
Your customers are your biggest asset. Treat them like gold! Develop a system for managing customer relationships and delivering top-notch service. A happy customer means repeat business and potential referrals. Remember, word-of-mouth is the most powerful marketing strategy you have at your disposal.
One of the best ways to ensure customer satisfaction is by setting expectations and following through on deadlines. Building a project schedule using construction software allows you to keep customers up to date and provide excellent customer service. You can use Projul to make sure your customer is kept in the loop when schedules change, or job scope is adjusted. The customer portal feature that Projul offers makes these updates automatic!
Having a strong network of customers is easier with positive online reviews, especially for a new business. Asking satisfied customers for positive reviews allows potential customers to see that you have a great team, provide quality work, and leave all your customers as happy customers.
6. Optimize Your Processes
Efficiency is the name of the game when you’re growing your business. Standardize your procedures and implement quality control measures. You want to minimize waste and maximize efficiency. Think of it as trimming the fat off a well-marbled steak. You’ll be left with a lean, mean, construction machine.
There is an old saying that goes something like this, “Focus on being productive rather than busy.” This is a great truth adopted by any successful construction company. Software helps you and your team be productive with everything you do.
Projul helps your team spend less time on phone calls, texting photos, writing estimates, and providing job-site updates. By saving time in these areas, you are able to take on more jobs without having to increase staff count or overhead expenses! Projul helps companies do more, with less.
7. Diversify Your Services
Have you ever heard the saying, “Don’t put all your eggs in one basket”? This applies to your construction business too. Consider expanding your services to include different construction sectors or specialized offerings. Not only does diversification reduce business risk, but it also opens up new streams of revenue. Just make sure any new venture aligns with your core competencies and strategic goals.
If you have scaled to a certain point, use the tips above to grow from specialty contractor to remodeling contractor. This can open a revenue stream that was previously unattainable.
Conclusion
Scaling your construction business isn’t a task to be taken lightly. It requires strategic planning, a dedicated team, and a passion for the industry. But with these tips, you’re well on your way to constructing a future of growth and success. So, let’s get building! Learn more about how Projul can help you grow your construction company by scheduling a live demo with our team.
Frequently asked questions
What is Projul and how can it help me grow my construction company?
Projul is a cloud-based construction management software designed specifically for small to mid-sized contractors. It can be a game-changer for your business, offering features like project scheduling, customer relationship management, estimating, and more. With Projul, you can streamline your operations, improve productivity, and stay on top of your projects – all of which can fuel your growth.
Projul is the right software to allow a small business to grow and scale. Whether you are a general contractor or a specialty contractor, Projul is a perfect fit for your construction business.
To learn how else Projul can benefit your construction company, check out this page!
What should be some of my first steps when scaling my company?
First and foremost, invest time in strategic planning. Identify your growth objectives and develop a roadmap for reaching them. This could involve expanding your team, investing in technology, or diversifying your services. And remember, financial management is crucial. Understand your cash flow, profit margins, and overhead costs to ensure you’re in a strong position to scale.
Always be on the lookout for prospective clients. Pass out your business card to real estate agents, general contractors, and other potential business opportunities. This can allow a business to grow without needing to spend large dollars on marketing and spending resources on content marketing.
How can I keep customers satisfied as I scale?
Keeping customers satisfied as you grow involves maintaining the quality of your work and ensuring open and responsive communication. Consider implementing a Customer Relationship Management (CRM) system to manage customer interactions efficiently. Check out Projul’s CRM features here. Regularly solicit feedback and use this to improve your services. Remember, a satisfied customer is likely to bring you repeat business and refer you to others.
Great customer service can set a smaller construction company apart from the competition, but even the largest construction firm should prioritize happy customers.
How can I ensure I make more money when I scale my business?
Profitability as you scale involves a few key factors. First, ensure your pricing accurately reflects the quality of your work and covers your costs. Second, manage your expenses diligently – this includes materials, labor, and overhead costs. Efficiency is also critical. Streamlining operations and reducing waste can significantly improve your profit margins. Finally, diversify your services or explore new markets to open up additional revenue streams.
Tracking accounts receivable and staying on top of outstanding invoices (while it seems obvious) is a very important part of scaling. Being paid for completed work, even if the scope has changed and you require a change order, should be your top priority. Any future projects you plan to take on should require careful planning to ensure maximum profits. This will help you grow your construction company
How does Projul help with task management and resource allocation?
Projul’s robust task management feature allows you to set priorities, track progress, and assign tasks easily. The resource management feature enables you to allocate resources effectively and optimize your team’s performance, ensuring your projects stay on time and within budget.
How does this construction project management software compare to other options on the market?
Projul was built by construction professionals who understand the unique needs and challenges of the industry. It offers a comprehensive suite of features specifically designed for construction project management, giving it an edge over more generic project management solutions.