The Covid-19 crisis has hit businesses across all sectors hard. As lockdown measures begin to ease, and construction ramps up again, there are opportunities to maximize profits and bounce back. If you’re a construction company owner, and you’re looking to increase margins, here are some strategies to try.
Reducing running costs
Maximizing profits is not solely about bringing in new customers and taking on projects. It’s also dependent on keeping a firm grip on expenses and outgoings. If you’re getting a lot of work, but you’re still struggling to generate significant profit, this is probably a sign that your outgoings are too high. The Covid-19 pandemic has highlighted the need to run a tight ship, and many businesses will be looking to save money in the months ahead.
There are various strategies you can employ to lower running costs and increase profits without making sacrifices to customer service. Look into different, more flexible staffing structures, invest in technology that boosts efficiency and saves time and money and consider options like crane hire and machinery leasing as an alternative to buying expensive equipment. Analyze your finances, audit expenses and see where your money goes. An audit should highlight areas of overspending and costs that could be cut. If the bulk of your outgoings is devoted to staff wages, it’s a good idea to adapt the way you recruit and hire to ensure staffing levels meet your requirements. If you’ve got more workers than you currently need, it’s worth looking into short-term, flexible or seasonal contracts.
There may have been a period when construction ground to a halt, but there are opportunities to grow and expand in the months and years ahead. Many people have devoted more time to DIY and home improvements over the course of the last few months, and staying at home for long periods of time has inspired homeowners to think about renovations or making changes to their property. Look for gaps in the market, cater to customers’ needs and respond to emerging trends. With more people working from home than ever before, for example, there may be a surge in demand for home extensions or loft conversions or people may be keen to explore ideas related to building offices or studios in their yard or garden.
To boost sales, evaluate your marketing strategy, define audiences and target people who have a genuine interest in the services you provide. You can use cutting-edge digital techniques such as SEO (search engine optimization), PPC and social media, as well as more traditional methods like flyering and posting adverts in the local press. Ensure your website is up to scratch. People are spending more time online than ever before, and there is a real opportunity to connect with new customers and put your business on the map using SEO and content marketing to drive traffic to your website and encourage clients to take the next step and get in touch.
Times are tough for construction businesses, but there are ways to speed up the recovery process, maximize margins and identify opportunities. Keep an eye on your outgoings, improve efficiency and step up efforts to target interested parties and bring in new customers.