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Increasing profitability is a goal for the majority of businesses, so we’re here with some advice specific to the construction industry to help you cut costs, save time, and maximize the potential of your business, whilst always meeting the construction needs of the project. From setting clear goals to different software you can utilize, we’ve got options no matter how much time or money you have to invest in this right now.
Set Clear Profit Goals
The first thing you should do, which will help guide the rest of the following steps, is to set clear profit goals for your business. Having measurable goals, rather than “just making more money is so important, as you know exactly where you need to cut back or increase costs. So, you should focus on SMART goals, which are specific, measurable, achievable, relevant, and time-based. An example would be that “by June next year, our company will have increased their profit margins by 10%. Here are some of the ways that we will do it…”. If you know what you’re working towards, then you just need to figure out how to get there, which we’re about to help you with.
Utilise Good Planning Software
If you’re not currently using good planning and budgeting software for your construction business, it’s imperative that you do. Whether you work on your own or own a large construction business, the software helps you to accurately map out the project with deadlines, it helps you to make sure they’re delivered on time, they stay within budget, and in general, the planning is improved. Poor planning can cause the downfall of a business, whereas good planning can be the making of it.
One of the most popular construction planning software programs is ClickUp, which helps you with delegating tasks and managing deadlines, scheduling resources like deliveries and plant hire, and document management to allow multiple different teams to easily access what is needed, track expenses, and control costs. There are different pricing structures as well to suit the needs of your business. Whilst it will take some time, moving over to a new system could transform the profitability of your business.
Don’t Underestimate Price Comparison Tools
Price comparison tools are really valuable in general, particularly in the construction industry. There are plenty of different websites where you can compare thousands of different tools and materials from the construction industry. You can either look for a specific product from a specific brand if you know exactly what you’re looking for and it’ll show you the cheapest provider, or if you’re not bothered about a specific brand, you can look for a general product and see what is available on the market. From heating and plumbing to home and furniture, electrics, lighting, and tiling, you can literally find anything and everything. So, if you’ve not recently reviewed the cost of your materials, this is the perfect time to do it, as switching providers could save you a significant amount.
Hire Experienced Team Members
This may sound counterproductive when it comes to saving money for your construction business, however, hiring experienced team members is so important in terms of the overall profitability of your business. With a more experienced team, you get better quality results and can usually offer a wider range of services, so you can charge more for what you do. Not only this, but more experienced team members make fewer mistakes, so you don’t waste many resources or much time on needing to redo things.
Every construction business will have more junior staff, as that’s simply how things work, however, when it comes to becoming more profitable, one of the most detrimental things you can do is replace all of your more experienced team with cheaper labor. A huge part of the construction is focused on repeat business and word-of-mouth recommendations, so compromising on the quality of your work could significantly impact your business in the long term.
Focus On Company Productivity
Last but certainly not least, you should focus on company productivity. Time is money, so by becoming more productive, you will be more profitable. The updated planning software will help with this, however, you should also focus on hiring good managers, setting strict deadlines, streamlining communication channels, and being selective in terms of your team to ensure that you’re hiring hard workers.
You should look to implement a goal-oriented working culture and one where people take responsibility, and whilst this might be a longer-term goal to implement, by beginning to have clear company goals and hiring the right people, you’ll be moving in the right direction.
Final Thoughts
By investing some time and money into your construction business now, you could significantly increase its profitability over time. If we could give you one place to get started, it would be to implement better planning software, as from here you begin to see where the gaps are and can make subsequent changes in order to maximize the potential of your business and to help you secure financial success.
