Are you relatively new to construction?
Today’s video is Survival Secrets for New Construction Companies, and it gives you THREE KEY STRATEGIES TO BE MORE SUCCESSFUL.
I’ve been in the construction industry for nearly 20 years and I’ve learned a lot in that time. I’ve also seen companies come in and do really well, and companies who’ve come in and failed.
What’s the difference between those who succeed, and those who fail?
What’s the main thing that you need to know so that you don’t go out of business?
The THREE KEY to Entering the Construction Industry Successfully
I’ve taken a lot of inspiration from Charlie Munger, he’s one of my favourite businesspeople of all time. If you haven’t heard of him he’s Warren Buffett’s right-hand man.
He talks a lot about a concept called “INVERSION THINKING”
The human brain is really good at solving problems… And one of the ways that we’ve learned to do this is by looking at “worst-case scenario” thinking, and then doing the opposite.
Let’s look at an example:
What would you do to have a terrible entrance into the construction industry?
- Come in and do it exactly the same as everybody else– maybe even charge the same.
- Tell nobody about it.
- If you get awarded a contract, do a terrible job.
So it makes sense then, if you want to go about making a good entrance, you’d flip this scenario around…
1.) What can you do to be different and make an impact?
SO THE FIRST KEY IS: HAVE A COMPELLING OFFER. You want to provide more value and stand out in the crowd. If you add more value, you can often charge more money.
2.) What can you do to stand out?
THE SECOND KEY IS: DO MARKETING. Think about ways you can capture the digital marketing space.
3.) What can you do to get referrals and repeat business?
THE THIRD KEY IS: DO AN AMAZING JOB. When you’re starting out your reputation is very important. PLUS you have to do an amazing job at being contractual. REMEMBER to collect testimonials and reviews that secure and promote your reputation.
THESE THREE KEYS WILL MAKE OR BREAK YOUR ENTRY INTO THE CONSTRUCTION INDUSTRY.
And one last tip…
There’s one thing that puts people out of business in the construction industry.
It’s thinking that construction businesses go bust because of starvation… BUT they actually go bust because of indigestion.
What do I mean by this? I mean CASH FLOW.
You have to make sure that your payment cycle works for your business. You need to know exactly how money is going in and out of your business.
For more tips and contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related.
P.S. We’ve created something special that I think you’ll find extremely useful. Given the harsh realities in the construction industry at the moment, we have put together a report that outlines the 3 Items You Must Negotiate In Every Contract. The report is packed with insights we’ve gathered from negotiating over 4,000 construction contracts. It’s all about drastically reducing risks in your contracts and boosting profits.
Just click this link to access it (it’s free). Hope you find as much value in it as some of our other clients have.