Write out your long-term goals and mission for the building construction company. Plan your sales, marketing and operations, based upon your goals and strategy. If you aspire to build the most single-family homes in your neighborhood, plan to build affordable houses and budget for enough supplies, equipment and workers to build homes simultaneously. On the other hand, building the neighborhood’s two most-expensive homes in one year might not require, as many supplies or labor, but you would market specifically to the wealthiest consumers, emphasizing premium quality and customization.
Paperwork can consume your time. You must secure business licenses, surety bonds that guarantee to pay your clients if you don’t fulfill your obligations and insurance to protect against claims from injured workers. As the construction company’s owner, you can delegate responsibilities for completing the necessary applications and tracking expiration dates for licenses and coverage, but you still must ensure that your business is properly protected.
Sales and Marketing
Customers are your construction company’s foundation. As owner, you personally call upon prospective customers, negotiate contracts and close deals. Or, you supervise a sales team, perhaps one with a manager that reports to you. Generate sales leads by marketing your services through means such as direct mail, the Internet and social media, networking, public relations and advertising. You also might want to bid on government contracts. Again, align your sales and marketing strategies with your goals to efficiently reach the best customers.
Satisfying customers helps you get more work from them or through referrals. Estimate a project’s cost accurately and allow adequate time to complete it so that you do not disappoint a customer. Quickly secure building permits, as well as the supplies, equipment, workers and subcontractors needed to complete construction on time and within budget. Supervise construction on site to ensure that workers are safe and that the project fulfills your quality standards.
Set payment schedules so that you collect enough money from customers to cover your operating costs while you work on a project. Accurately record your expenses and revenues for each project, so that you can assess your profitability. Do not bid for projects at prices that you cannot afford. Maintain profit margins by controlling expenses and increasing revenue.
A new construction company faces a number of challenges. Regardless of whether it offers commercial construction services, new residential construction or general repairs and modifications, a construction company without a service record needs a series of clear goals as it begins to operate. These goals are different from the specific, tangible objectives that a construction business needs, but they are just as important to lasting profitability.
One of the first goals a new construction company sets out to achieve needs to be establishing a strong and sustainable internal structure. Just how a construction company organizes itself depends on its size and the scope of its projects. For example, a company that develops its own projects and makes proposals to clients needs to set up a project-development team that includes members who are skilled at giving formal presentations. Hiring the right workers and defining their job descriptions are also key parts of structuring a new construction company.
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Article Added on Thursday, May 1, 2014
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