523: Ways To Keep Your Construction Company Sustainable

This Podcast Is Episode Number 523, And It's About Ways To Keep Your Construction Company Sustainable

Taking steps to create a good foundation in the early days of your business is essential for a sustainable and profitable future. 

It's rare these days that your prospective leads happen to find your construction business and become a client with no work. Your company has to grab people's attention, turn curious visitors into leads and then convert those leads into sales.

Keep in mind: Marketing-Accounting-Production

The first thing I would like to point out is:

1. Don't neglect Marketing

Entrepreneurs like you are incredibly busy, and finding the time to promote your business can be a real challenge. The other challenge for new trade companies is money—but every small business needs to invest in marketing activities to increase sales and keep the cash flow flowing.

It's wise to be wary of costly large-scale marketing strategies when you're just starting. The best use of your time in the early days is getting to know your clients and how they tick so that you can design (or hire an expert to mastermind) highly appealing, cost-effective campaigns.

And don't turn a blind eye to what your competitors are up to. Monitor how they attract new customers and think about how you can improve on what they're doing—or take a completely different approach to promote your business that will help your young brand stand apart.

This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are contacts engaged in your business, fit your client persona, and are at least somewhat motivated to hire your service.

Here are four great ways to get more leads for your business:

1. Target your ideal clients

You might want your business to be relevant to everybody, but the reality is that there is a specific target client who is ideal for your business. Those clients are the ones who are most likely to be attracted to your services and, therefore, the most likely to hire you.

These are the people to aim your marketing at. Knowing who they are and what they like helps you develop the products and services they'll use. It also saves you money on marketing because you can target your ideal clients rather than marketing to everybody and hoping somebody shows interest.

Even more critical, when you understand your ideal clients, you can build connections with them more effectively, generating leads that can turn into sales.

2. Know your unique value proposition

Your unique value proposition is what makes you different from your competition. Every business has something that sets it apart and attracts a specific market.

Your products or services might be of a higher quality. You might have better loyalty programs or more specialized staff. Even the size of your business can be a unique value proposition. Smaller companies can claim more personal, attentive, and efficient service for their clients. 

Determine what differentiates your construction business from your competition and use that uniqueness in your marketing.

3. Attend networking events

Yes, in-person marketing takes time and energy, and you can only talk to so many people simultaneously. But hearing an entrepreneur speak passionately about their business can be very persuasive. Networking events are a great way to get face-to-face time with potential leads.

Meeting people at events lets you talk directly to potential clients and hear what issues must be solved.

Just make sure the networking events you attend are relevant to your business and are functions that your ideal clients attend. Otherwise, you'll be wasting that valuable time and energy.

4. Create high-value content

With so many people using the Internet to find companies and make purchasing decisions, you must ensure your business is easily found. That means developing attractive, high-value, informative website content that is compelling and encourages page visitors to submit their contact information.

Make sure you use engaging calls to action. Write blog posts that drive traffic to your website. Develop tip sheets that quickly address some of your clients' issues and get people to sign-up to receive them. Create a newsletter that clients or customers can subscribe to. The people on your newsletter subscription list become leads.

However, ensure your content is timely, engaging, and relevant to your clients and business.

Now that you got Marketing handled let's move to Accounting.

2. Keep your eyes on the numbers

If you're starting, you may be surprised by how quickly those day-to-day expenses add up. It's essential to make sure, right from day one, that you consistently track your spending, file your receipts, and monitor your income and expenses with an easy, reliable accounting system.

Cloud-based accounting software (like Xero) can help you know exactly where your finances stand in real time—with secure access to accurate, up-to-date financial data anywhere, anytime.

In addition to collaborating more efficiently with your bookkeeper and accountant so you can get advice whenever you need it, you'll avoid the stress and hassle come tax time—and be empowered every day to make better, more intelligent business decisions.

Touching base with your business advisor is valuable.

Every successful entrepreneur learns from experience—not to mention failure, which can be the greatest of all teachers.

While it's true that "you don't know what you don't know," you can shrink your learning curve by reaching out to experienced mentors for guidance.

Consider working with a small construction business accountant who can provide personalized advice to help you make it through the first year—and an ongoing objective perspective on your business, industry, and market in the future.

And last, let's talk about Production:

3. Take care of your employees

Your business is nothing without your employees; happy employees are more productive, motivated, and loyal. Smart construction business owners know it's worth spending a little extra money to ensure you have the best employees on your staff and reward them for their hard work. 

When you can, spend money on your crew, offer bonuses or gifts for meeting their goals or exceptional service, provide better-than-average benefits plans, give them opportunities for training, or increase their salaries.

Happy employees give more to your business. They reduce the turnover rate, saving you the cost and headache of finding and training new workers. Plus, your clients like seeing consistency in your staff, so they'll appreciate that you keep your workers happy.

Alone? I hear you. The reality is that as a small business owner, you DO NOT HAVE to hire employees. Invest in yourself, and outsource the most mundane low-value tasks that take time away from what you are skilled in. Remember that you are your company's most important employee.

It's been said many times that a business is like a baby—and it can be challenging for entrepreneurs to trust someone enough to hand over any aspect of it. Many construction business owners work to exhaustion because they can't let themselves take a weekend off. They neglect their most important relationships and never get to enjoy their successes because there's always more to do.

Final thoughts

Leads don't just magically appear out of thin air. Developing solid contacts that turn into paying clients takes time and work. By knowing who your ideal clients are, understanding your unique value proposition, putting in some face-to-face time, and developing relevant content, you can quickly increase your solid leads this year. 

The most successful entrepreneurs know they can't do it all—nor should they—and build in time for rest so they can be more productive at work. Train someone early on to run the business in your absence so you can take a rejuvenating vacation and enjoy the freedom you likely dreamed of when you first imagined going into the construction business for yourself.

Now, you have a road MAP to sustain your construction company for success, and all you have left is to assemble the tools, equipment, and staff to set up your trucks and vans and go to work!

About The Author:

Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com