We’re not talking about staying up… Did you know that OVER 65% of construction companies never make it past the 10 year mark?
Over nearly 2 decades of being in the construction business, we’ve put together five secrets that larger construction companies implement to be highly successful.
Today’s video is ‘This is How to Understand the Business of Construction’ it gives invaluable advice about what it takes to thrive in this industry.
So what are the FIVE THINGS?
ONE: BUSINESS MODEL
Having a good business model is key to success. So what’s a bad model? The worst thing you can do is do the work first, and get paid later. And, usually later is 30-90 days.
So what’s the best way?
- Get as much money as you can upfront.
- Try to get paid according to milestones.
- Once the project is complete try to secure future income by building in maintenance fees. This ensures recurring revenue.
Applying this business model will make your business more valuable and you’ll have a much lower risk.
TWO: THE OFFER
So what’s the worst case? The worst thing is being the same as everybody else. So what’s the best way?
You want to be incomparable to other similar businesses. SO it’s not about being the cheapest or the most expensive. You want to have other things that set you apart. You need to be able to offer things that add value, that no one else is offering.
Think about what kind of packages you can create to come across as having broad value.
THREE: MARKETING
A lot of construction companies adopt the worst case model of not doing marketing, and not taking advantage of digital marketing. So what’s the best way? The best way is to create cornerstone content.
This is content that secures you as an expert in your field, and the market comes to you because of this.
- Catalogues
- Buyers Guides
- Pricing Guides
- Books
- Guidebooks
- Training Courses
- Reports
- Newsletters
Use your creativity to harness your skills and expertise to establish yourself as more than just a business.
FOUR: MULTIPLE ACQUISITION CHANNELS
The worst case model is to just bid for work when projects come up. So, what’s the best way? Create multiple different ways of acquiring work.
- Bidding
- Referral schemes
- Loyalty programmes
- Special offers
- Discounts
- Make use of digital marketing
FIVE: RISK
The worst case is not to take advantage of value and to neglect risk. So, that’s the best way?
To increase value:
- Get more clients
- Make your clients worth more
- CONSIDER RISK.
Manage your risk through contracts. NEVER FORGET ABOUT CASH FLOW.
P.S.
Our ‘Quantum Contract Advantage Service’ transforms subcontractors from contractually vulnerable and unprofitable in project administration to experts in securing more, better contracts effortlessly while increasing profits and reducing risk.
If you want to extract 5 – 15% More Profit From Each Construction Project – Click on This Link to see how it works.
