Your Guide to Tools and Tips for How to Grow Your Construction Company
Your construction company is struggling.
- You’re lacking cash-flow
- Your list of clients is becoming smaller and smaller
- You feel unorganized; and
- Like you’re drowning in paperwork.
The good news is that you’re probably not the only construction business that feels this way.
The construction industry is constantly facing delays, payment issues, or unpredictable scenarios. These issues can cause setbacks for construction companies that can ultimately become detrimental and stunt growth.
This guide offers tools and tips to successfully grow your construction company, including how to:
- Better manage payments
- Market your company
- Use a project management system
- And more
Table of Contents
- Get Paid Faster and Gain Access to Working Capital With Flexbase
- Common Struggles Faced When Learning How to Grow Your Construction Business
- How Do I Get my Construction Company to the Next Level?
- 10 Tips on How to Grow Your Construction Company
Get Paid Faster and Gain Access to Working Capital With Flexbase
In the construction industry, delayed payments are almost considered the norm.
The construction billing procedure is complicated and typically must go through a chain of people.
This usually includes:
- Property owner and lenders
- General contractor
- Material suppliers
Credit and trust play a big role in funding construction projects.
The use of a platform like Flexbase streamlines the payment process and automates all of the necessary paperwork to complete the payment process quicker.
Our app allows customers to:
- Keep track of projects
- Request payments; and
- Quickly complete the necessary paperwork for the billing process.
Common Struggles Faced When Learning How to Grow Your Construction Business
Construction companies often fail for the same reasons time and time again.
If you’re looking into how to expand your construction business or you’d like to see some construction company growth, here are common struggles you should investigate and address.
Construction is a trade job.
It is not uncommon that construction workers only intend to work for a short time.
They might not have much experience with the job or the motivation to work hard knowing they won’t be staying for the long haul.
To help your construction company growth, you can:
- Look to hire from staffing agencies who already have skilled workers vetted that want to work for you.
- Offer competitive salaries to make the job more desirable.
- Provide training for employees to help them learn the trade and your business expectations.
- Promote from within your company to encourage employees to work hard.
Lack of Available Profits to Reinvest
Maintaining positive cash-flow in the construction industry is difficult.
Many of the problems related to cash-flow come from:
- Projects that are funded upfront without receiving payments
- Continuing a project when there is a late payment or non-payment
- Poor planning with cash capacity
- Poor management of orders
It is not uncommon for setbacks or unpredicted events to occur during construction projects, which can affect cash-flow.
When there is no money on hand, it can be increasingly difficult to continue a project without running into more money issues.
Flexbase can help minimize the cash-flow problem in your construction business.
Our platform integrates seamlessly with your existing software to help:
- Track projects
- Send invoices
- Automate paperwork; and
- Expedite the payment process.
How Do I Get my Construction Company to the Next Level?
Construction companies often struggle because of:
- Limited cash-flow
- Multi-level projects
- Seasonal work
If you’re growing a construction business, focusing on your cash-flow and how you manage invoices and payments can help bring your company to the next level.
10 Tips on How to Grow Your Construction Company
If your construction business is struggling to grow, know that you aren’t alone.
There are strategies you can implement that can help your construction company reach new potential, like:
- Focusing on cash-flow and payments
- Customer support
- A project management platform
- And more
#1: Forecast Your Cash Flow as Best as Possible
With a positive cash-flow, construction companies have a better opportunity to quickly pay bills, clients, and other project obligations.
But it can be difficult to project your cash flow in construction because there are often:
- Unforeseen obstacles with a project
- Multiple subcontractors involved in a project
- Varying costs of supplies and materials
By using a platform like Flexbase, you can get a general idea of cash you have on hand and see the different payouts and incoming money you have ahead.
This is helpful when planning a project so you can spread out your costs without going into the red.
#2: Digitize Every Expense
Laying out all of your expenses in a digital format makes it extremely clear and easy to see what you have available and what you have going out or coming in.
A platform like Flexbase is free to use and helps automate this process and provides a visual reminder of what your money situation looks like.
Automate Your Billing and Payment Process
Using a platform that helps to automate your payments, both incoming and outgoing, can help you stay on top of your cash-flow while also keeping you updated on upcoming payments.
Flexbase’s software uses a reminder system that shows:
- The dollar amount
- The date
- The status of the payments
- How to take action on the payment
It also automates paperwork that is often used in the construction industry, like:
- AIA forms
- Lien Waivers
- And more
With Flexbase, human error is diminished.
Plus, both paperwork and funds are sent and received much faster than many construction companies currently experience.
#3: Invest in Marketing for Your Construction Company
It has been noted that the construction industry allocates about 13% of their budget to their marketing strategies.
Construction is typically a word-of-mouth referral business. Happy customers often share who did work for them while unhappy customers might encourage people to look into other construction businesses for their work.
Investing in your marketing strategy could largely aid in growing a construction business can help bring new and potential clients to your doorstep.
#4: Invest in Customer Support
Excellent customer support goes a long way.
If customers are unhappy they’re sure to let their friends and family know to steer clear of your business.
On the flip side, if customers are pleased with your work, they’ll likely recommend you when others need construction.
Investing in customer support could help your construction company avoid some of the negative talk and poor feedback from customers.
Customer support can help with:
- Easily putting clients in contact with a human.
- Helping to address and solve problems with clients.
- Keeping track of the details of projects.
- Showing your company cares for its customers.
Ultimately, having happy customers can go a long way in growing a construction business.
#5: Develop Both Short and Long-Term Goals
Are you stuck on how to make your construction company grow?
Setting both short and long-term goals can keep your business on track for growth.
You might want your business to:
- Earn a set amount of revenue
- Have an average project value
- Have a set close rate to work towards
Or maybe your profit margin isn’t where you want it to be.
Consider these goals and brainstorm specifics for your construction business to help give your team an idea of where you want your company to be by a certain time.
This will ensure your entire team knows what they are working for and how it can positively affect your business moving forward.
#6: Complete Your Billing on Time
Payouts in the construction industry can take a long time — sometimes upwards of 80 days.
By completing your billing on time:
- You are better managing your cash-flow.
- You look more desirable to clients and subcontractors.
These can both help with construction company growth in the long-run.
Use a Schedule of Values to Bill for Your Projects
It’s been made clear that billing projects and waiting to receive payouts in the construction industry is not a simple task for a number of reasons:
- The process is long.
- There is often a lot of paperwork involved.
- There can be multiple levels involved in payments for specific parts of a project.
A Schedule of Values (SOV) itemizes each separate part of the job from beginning to end and breaks down the total project price into smaller pieces.
In construction, this is important because it can help ensure that bills are paid in a timely manner and that cash-flow remains positive.
Flexbase’s platform has a Schedule of Values built into the application to be used with each project. This tool is a clear and easy way for your construction business to manage funds and billing.
#7: Invest in Project Management Software
Keeping track of multiple projects in an organized way can be beneficial for your construction business.
When you have a lot going on, it can become too easy to get caught up and confused about the whereabouts of the different projects.
Project management software that helps keep your construction business organized and can:
- Collect all of the project information in one space.
- Show the schedule of values for the project.
- Save information about the client in one space.
- Allow for documents pertaining to the project to be uploaded.
#8: Utilize Complimentary Payment Software
Many construction businesses already use project management software or applications and have success with them.
However, most of that software is just for project management.
By using a platform like Flexbase, you are getting the best of both worlds.
Flexbase allows construction companies to pair project management and account software together so you can keep track of every aspect of your project in one place — payments included.
#9: How Do Construction Companies Find Clients? Use Lead Generation Services
Statistics show that generating leads is the biggest challenge for 63% of companies.
Many businesses don’t know where to look or where to advertise to find their clients, so lead generation services help.
- Provide online databases of potential contacts
- Help improve your marketing.
- Review and fix your online presence.
If you are expanding a construction business, lead generation services can help set your company up for success.
By reevaluating your marketing strategy and allowing insight to potential clients, you’re more likely to gain paying customers.
If those customers are satisfied with your work, your construction business is likely to grow.
#10: Finance Larger Projects With Credit Lines and Working Capital
Construction industry is a unique industry because, in order for construction companies to work, they need money upfront.
By financing projects with a credit line, your business has easy access to working capital, making it easier to move money around and quickly make payments.
Flexbase can help you gain access to working capital in 24 hours. How?
- Flexbase is constantly sending your information to 85 different banks.
- If you need working capital for any reason, you can click one button to view your different offers from our preferred lenders.
- After reviewing the terms, you can easily accept an offer.
- You gain access to the funds typically within 24 hours.
Our free platform offers many perks, like:
- Project Management
- Expedited paperwork processes
- Quick and easy access to working capital
- Expedited billing (both incoming and outgoing)
Click here to learn more about how Flexbase can help your construction business thrive and grow.