Starting a new venture as a construction contractor is exciting. You’re on your own, building a business that you’re passionate about, and the sky’s the limit. It’s also a big risk and takes a lot of dedication to create a business that will be successful long-term. In this post, I’ll share some of the most valuable keys to success for any construction contractor.
Before we dive into the keys let’s talk briefly about business survival rates. Did you know that over 50% of construction companies fail? That’s a lot, but no pressure, right? According to an infographic from Failory, startups often fail due to:
• 2% – Legal problems
• 2% – Operation problems
• 6% – Tech problems
• 16% – Finance problems
• 18% – Team problems
• 22% – Marketing problems
• 34% – Poor market fit
In general, to succeed you’ll need to create a detailed business plan and be persistent.
Keys to Success for Any Construction Contractor
Your business plan will help you think holistically about your service(s), strategy, and goals. Additionally, the tips below will help you build your business and establish a good reputation among potential customers.
Get a Mentor
Construction businesses are competitive but that’s no reason not to seek out a mentor. Your mentor can be someone in the same or a similar line of business. Try to find someone who has been in business for over 10 years. A decade of experience in building and establishing a business is a major accomplishment, they’ll have plenty of wisdom to share. Building your network is a great way to learn and build relationships that could help you in the future. (Remember, they don’t have to live in the same state as you.)
Hire People With Integrity
The people who work for you are a representation of your company. Everyone on your team should have a strong skill set and above all have integrity. In today’s world customers are specifically looking to hire honest and transparent companies. Technology makes it easy for people to skip
companies with negative reviews. Hiring people who have a high sense of integrity should help you build goodwill with your clients and among your team.
Cover Your Bases
Construction can be a dangerous business so make sure you have safety policies in place to protect your team, clients, and yourself. Also purchase a specialized insurance policy, if you never have to use it great but you should have it just in case. Plus, letting your customers and potential employees know you have them covered if an accident does happen makes everyone feel better.
Don’t Cut Corners
Avoid cutting corners, especially to save on costs. Imagine how horrible it would be for your reputation and bottom line for a customer to run into a problem with their project because you went with a cheaper material or skipped a step. You may save on costs upfront but a hiccup like this could end up costing you all the profits from a job or more.
Be Receptive of Client Feedback
Let your clients help you grow. Every job should be a learning experience, an opportunity to get better at what you do. Ask clients for feedback and be receptive of what they have to say, even if it may seem harsh. Use your client’s feedback to adjust the services you offer and to improve your customer’s service experience.
Your first few years will be challenging and you may even learn that you’ll need to make some changes to your business plan but be persistent, keep learning, and be open to new ideas. The keys above will shape a customer-centric business. By providing your customers with the best possible experience you’ll stand out from your competition and earn positive reviews and referrals.