There are more than 3 million construction businesses in the United States. About a third of them employ less than 50 people.
It’s challenging for construction companies to operate with so few people. They need to manage bids, work on-site, and follow up with clients.
In the world of construction company management, efficiency is the name of the game. You need to streamline your operations to optimize your business. This is crucial if you want to increase construction company profits.
Don’t worry because you’re about to discover a few simple steps to create a more efficient construction company.
Read on to learn what they are.
Hire Right the First Time
It can cost as much as two times an employee’s salary to replace them. Let’s say that you have a company of 20 employees.
The average turnover rate is 26%, so you’ll lose five of them in a year. If they earn $60,000 a year each, you’ll spend as much as $600,000 to replace those employees.
Hiring and retaining good people to work for your company has to be at the top of your list to create an efficient construction company.
Invest heavily in a project manager, accountant, estimator, and office manager.
Create Systems
Do you have documented systems and procedures in place? There should be a system in place for every aspect of your construction business.
Document processes for lead generation, estimating, order purchasing, bookkeeping, and hiring.
Leverage Technology
Technology has the power to help you streamline the operations in your construction company. You can use it for employees to clock in and out, create estimates, and automate marketing tasks.
That doesn’t mean you should go out and invest in every software suite possible. Figure out what your needs are and buy only the tools that fit those needs.
Check out equipmentshare.com, Planyard, and Archdesk to see a few examples of software suites for construction companies.
Delegate and Outsource
You don’t have to do everything yourself. You can outsource and delegate tasks to free up your time. That allows you to think like a manager or CEO.
You’ll be able to guide the strategy of the company instead of spending time on small tasks.
Consider where your employees spend the most time. If those tasks don’t generate revenue, outsource them.
Think Long-Term
The one place where construction company managers struggle is they can’t keep the long-term in perspective. They’re challenged to put out one fire and then another on a daily basis.
Short-term thinking doesn’t lead to business growth and efficiency.
Set long-term goals for the business. These goals will help you make decisions and plan to reach them.
Optimize Your Construction Company
It’s not easy to be in the construction business. If you have a small construction company, you have to make everything as efficient as possible.
Follow the tips in this guide, and you’ll have a streamlined operation. That turns into construction company profits.
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