Running a construction business presents daily challenges - overcoming them is part of the skill of being a business owner. But one challenge that persists is the need to increase revenue coming into the business. With fixed overheads, more revenue can mean a higher profit profile for the whole business. So let's look at the top five ways to do this.
1. Spend your time on the things that increase revenue
Construction is the revenue earner, and you need to maximise that revenue stream while minimising all the work that doesn't add value. For example, visiting potential clients and preparing estimates can take up a lot of time leaving less time free to spend on marketing to get more work in. So take advantage of building construction software. You can now use software to prepare a detailed estimate, organised by trade or construction phase, giving actual prices per activity.
The same package will produce very professional looking estimates, so that from the start you're giving a great impression. Larger firms can even integrate the estimating engine into their software.
2. Be aware of when the competition is tied up elsewhere
In the summer, many large construction firms and their subcontractors are busy working on schools and colleges, which can't have major works carried out during the academic year. Yet it's also frequently the time that the public wants work done. If you're not on the public sector frameworks, take advantage of the fact that many firms are tied up during the summer and plan a marketing campaign that will bring in work over the summer months.
3. Use your existing client base for repeat business
You know your clients and which of them is likely to bring you repeat business. So make sure you have their email address (and permission to use it) and send them a reminder, or a newsletter, saying what the firm has been doing. Talk to them to build engagement.
4. Make sure you price accurately
It's no good getting a great revenue flow coming in at one end of the business if it's pouring out of the other end on materials, subcontractors or labour costs that you didn't anticipate. A sound estimate is the basis of a profitable business. Yet estimates are sometimes rushed because of the pressure of ongoing projects. Use building construction software to get estimating done accurately and swiftly. You want your estimates to look as though you have a whole office preparing professional looking documents, even if it's actually been done super-speedily on a laptop using building construction software.
5. Focus your internet marketing
It can be tempting to go for Facebook and Twitter and Instagram and a web page and so on. But are you really going to have time to keep all of these up to date? However, many people are interested in construction so they may well take a quick look at a Twitter feed - remember to include photos.