Do you have the right mindset to grow your construction business?
The UK construction industry saw a record-busting slump in output this year. But in any recession, there will be winners and losers and that applies to the construction too. There is an opportunity for growth right now. But what does it take to do this successfully? A lot of it comes down to mindset — this is what shapes the decisions you make and the plans you put in place.
So do you have the right mindset? Find out by considering these 7 questions:
1. Are you thinking about the long-term and the short-term?
It’s easy to get caught up in the immediate project deadlines you’re facing, from meeting material requirements to completing specific phases of construction. Of course, you’ve got your eye on the next project to keep the work coming in for your team but that isn’t thinking far enough into the future. You need to have an eye on where you want your business to be this time next year, 2 years from now, 5 years from now. And you need to have a plan of action for how you’ll reach those goals.
2. Are you planning your sales and targeting your projects?
Word of mouth and repeat clients only go so far in today’s hypercompetitive industry. You need to have a sales strategy in place that targets the specific types of projects that play to your strengths and resources. Bidding for projects that don’t well-match your capabilities puts you at an immediate disadvantage and ultimately will hit your bottom line as you plough more money into estimates that won’t lead to new revenue.
3. Have you clearly defined your 2-year and 5-year growth plan?
We’ve already mentioned the importance of long-term planning and mapping out how you will achieve your goals. But plans that are vague or not fully fleshed out are almost as bad as having no plans at all. Every step towards your goal needs to have clear, tangible actions that you can implement, ideally with clear, tangible outcomes that you can measure to check whether your approach is working or not.
4. Do you spend most of your time working on your business or working in it?
You know construction inside-out, which is why it’s tempting to get stuck into the details of every single project. Cost estimating is one example of something that can easily drain your time and limit your ability to bid for more projects. It’s important to know when to delegate and outsource certain processes, vital to the success of your business, to experts you trust to get the job done right. This frees up your time to work on your business, such as marketing your services and converting leads.
5. How often do you take calculated risks?
Every project you take on comes with risks. Bigger risks often come with bigger rewards. There does, of course, come a point when the risks are too big, when the potential fallout from things not going your way could sink your business. That’s the line in the sand. But to grow you need you to be able to walk right up to that line. As the saying goes, nothing ventured, nothing gained.
6. Are you collecting data on your business performance?
Every project you bid for, every project you complete, creates data. Bid wins and losses, costs and profits — this data gives you a read-out on how well your business is performing and crucially where things could be improved. Without this data, you’re flying blind. The growth of your business is therefore dependent on the ongoing collection and analysis of this data.
7. Are you tracking and analysing your conversion rates per lead channel?
Growth depends on securing more projects, so you need to know which channels bring in the most new leads and the most conversions, that is leads that turn into bids won. Once you know this you can start to understand why you’re winning some projects and losing others. Pricing up jobs as they turn up and hoping for the best may keep you afloat today but this approach won’t help you continue to succeed in the long-term.
With the answers to these 7 questions, you should now have a clear idea of whether you have the right mindset for growth. If you need help turning this mindset into actions that will see your profits grow, we’re here to help, as experienced construction consultants. Learn more about TenderPilot today