When you run a small construction company, sustainable growth can be especially hard to achieve, given the unique and inherent challenges involved in building. In the year ahead, what areas of your business would most benefit from your attention? In other words, with scarce time and resources, what are the most important ways to invest your time and effort? Read on for ideas.
Thriving and Growing
Win more bids. Figure out how to make technology game changing. Keep the cash flowing. Hire and retain an excellent team. Stay out of business with the wrong customers. Network more. Market more. Upgrade equipment….If you are like most construction business owners, these action items, and more, are on your mind. Of course you can’t do it all, so as you nail down your strategy for the year ahead, try to narrow your efforts, zooming in on what your business could most benefit from. To help you consider what truly deserves your full attention, Deltek, a software company for project based businesses, has shared a list of potential business strategies, including these:
Leveraging Technology for Efficiency
Technology is a game-changer for small construction businesses. Investing in construction accounting software, project management tools and field communication apps can streamline operations, improve collaboration and enhance profitability.
Strengthening Financial Management
…Implementing strong financial practices—such as accurate budgeting, tracking expenses and managing cash flow—ensures long-term stability. Small businesses should:
- Separate personal and business finances to maintain clear records
- Utilize automated invoicing and payment systems to improve cash flow
- Plan for seasonal fluctuations by building a financial cushion
- Explore strategies for managing short-term cash flow gaps, such as negotiating extended payment terms with suppliers or offering early payment discounts to clients
- Leverage financing options like construction loans or lines of credit to fund equipment purchases and workforce expansion
Improving the financial position of your construction company is not easy, but as you dig in, you may find that laissez-faire business practices are doing more harm than you realize. For example, if you have not had time to deposit a check or two, haven’t even begun to invoice on one or more projects, or don’t have a structured, ongoing approach for collecting payments, you are likely your own worst enemy. At GB Financial Services, Gary Bartecki points out that by consistently converting short-term assets into cash can make a big difference. Being meticulous about change order management is key too. In addition to finances, many construction businesses struggle with building strong teams and marketing, so consider these areas for attention as well:
Building a Skilled Workforce
…. Small businesses can differentiate themselves by offering competitive wages, providing opportunities for training and certification and fostering a positive company culture. Additional strategies include:
- Partnering with trade schools and apprenticeship programs to create a talent pipeline
- Offering benefits such as health insurance and retirement plans to improve employee retention
- Creating mentorship programs that help less-experienced workers advance in their careers
Embracing Marketing and Networking
Many small construction companies rely on word-of-mouth referrals, but a strategic marketing plan can expand their reach. Leveraging social media, creating a professional website and showcasing completed projects through case studies and testimonials can enhance credibility. Consider these marketing tactics:
- Creating a Google My Business profile to improve local search visibility
- Posting project updates and client testimonials on LinkedIn, Facebook and Instagram
- Running targeted ads on social media to attract local clients
- Attending industry events, joining local trade associations and networking with other business owners to build partnerships and increase visibility
Surety Bonds: Options for Every Builder
In construction, surety bonds are more than mere paperwork; they’re a testament to your financial stability and commitment to completing projects. Colonial Surety Company helps construction companies of all sizes improve bidding capacity and demonstrate reliability. Our Hometown Bond Program provides local builders with credit based underwriting bonds for up to $250k—no financial statements required.
Got something bigger in mind? No problem. We’ve got something special for you too.
Receive Free Business Credit Scores instantly, just for submitting an easy, speedy Pre-Qual for a surety line of credit in writing. Once qualified, welcome new projects in, as you leverage all the benefits of The Partnership Account® for Contractors, including:
- Written Bonding Limits: Receive your single and aggregate bonding limits in writing.
- Instant Bid Bond Issuance: Gain the ability to issue your own bid bonds within minutes, using our powers of attorney.
- Real-Time Visibility: Use your private dashboard to view your underwriting profile and insightful financial data in real-time.
Surety Bond programs for construction businesses of every size are right here:
Bonding Programs at Colonial Surety Company
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety Company.