Ready to take on more projects? Expansion is a natural step for many builders and contractors as their operation starts to mature. Growth can happen in a few different ways – venturing into new territories, capitalising on increased demand in an existing region and diversifying into new services are some of the more common approaches.
The key is to ensure you are doing it sustainably so you can continue to operate into the future. This can be done with effective planning, the right workforce and competent management. What steps should you follow to grow your construction empire?
Update your business plan
Strategy should always come first with any expansion. Review your current business plan and update sections that relate to your growth plans. It may be useful to create a standalone document detailing your strategy and methods.
Conduct the appropriate situational analysis, set your ambitions for growth and outline the necessary steps required to reach your goals. Don’t forget contingency planning because you never know when things can go wrong.
Evaluate your workforce
A successful expansion needs the right people to facilitate it. This includes everyone from senior managers and directors to workers and specialists responsible for delivering the work. Consider if you’ll need someone experienced to direct the expansion or new construction skills across the company to bring it to fruition.
You may have all the tools you need in-house to help deliver your growth. Upskilling or cross-skilling existing staff is more cost-effective than hiring new, so consider what you’re working with already. Having the right people and processes in place will help to ensure that your growth is sustainable.
Consider legal factors
With growth comes added liability, particularly in the construction industry. A wider range of clients, different types of building projects and more staff increase both risk and reward. Your builders insurance policy may need reviewing to account for such changes.
Different licences and permits might be required if you are diversifying or working in new territories. Conduct in-depth research to ensure that you are covered on all bases during and after your expansion.
Review sales and marketing channels
Increased revenue is usually the cause or desired outcome of growth, so it’s important to focus on sales and marketing. Evaluate your existing channels and methods to see where you can optimise.
What got you to where you are isn’t necessarily what will get you to where you want to be. New ambitions often require fresh approaches, so consider what sales and marketing strategies will help you to achieve your aims.
Growth needs to be sustainable and it all starts with a clear strategy and competent leaders. How would you approach expansion?