When it comes to the construction industry, we are currently dealing with an increase in the importance of specialized small and medium-sized companies on the Polish market. Many of them are capable of implementing even very complex projects. Of course, the industry faces numerous challenges. Some of them are related, for example, to the interpretation of regulations and problems with obtaining financing. Usually, however, professionals, working in the market for years, have nothing to complain about. Nevertheless, the development of a construction company should be planned wisely.
Construction companies operate in a highly competitive environment. Every day they fight not only for lucrative jobs, but also struggle with the common phenomenon of buying up valuable employees. As the opinion of the environment is extremely important in their case, they see the need to shape the right image and communicate competitive advantages more and more clearly.
One effective way to grow your business is to choose a niche in which to operate. On the other hand, practice shows that clients expect a more comprehensive approach from the construction company. And they are willing to pay more for them, just to avoid the need to look for more professionals. All the more so flattering references for a construction company, often create more customers than it can handle.
What are the barriers to the development of a construction company?
A construction company that wants to survive on a fairly competitive market and acquire new customers must constantly monitor its surroundings. He has to acquire knowledge, draw conclusions and turn them into specific activities leading to the development of the business. It also has to deal with the problems that are unique to this industry. One of them is the lack of employees with a specific profession and appropriate experience, resulting from the decline in the popularity of education in the field of construction and the emigration of professionals to countries with better financial conditions.
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Another problem that hinders the development of a construction company is the growing phenomenon of payment gridlocks. This phenomenon prevents the commencement of works and their timely completion. And the purchase of equipment and construction materials is a large investment, which is the biggest barrier to entering the market. The lack of funds for introducing innovative solutions is also acute (the leasing of machines and equipment comes to the rescue, which enables the implementation of improvements in the course of many processes through automation and improvement of their efficiency).
C.and higher labor and building material costs make it an increasingly frequent phenomenon employment based on "junk contracts"and the staff are there less experienceeni. Looking for savings is sometimes associated with theyborem cheaper equivalents of building materials, and even resignationand from what is unnecessary, although influencing a certain quality.
The development of a construction company is often blocked by the inability to build a clear image. The problem may also be the lack of an idea for effective communication of competitive advantages. Construction companies focus mainly on hiring industry professionals, not marketing specialists. They are reluctant to hire outside companies, seeing marketing as a cost rather than an investment. Shaping the company's image it is also not possible due to the lack of an effective promotion strategy. In the case of construction companies, advertising on the web is a very good idea. After all, this is where people most often look for companies worth recommending.
Myths related to the development of construction companies
Development strategy it's not a universal template that fits every business. There are myths in every industry that are designed to scare new entrants and discourage them from entering the market. And although there is a grain of truth in every myth, the most important thing is to be able to turn all apparent difficulties to your advantage. And use it in building a competitive advantage.
Myth 1 - I have no place for a small business here
Observing the development of various types of construction investments, one gets the impression that they are only the work of large players with enormous capital. However, the construction industry is really the strength of small companies, mainly dealing with interior finishing. As a rule, repairs are carried out by teams of several people, the best form of promotion of which are recommendations from satisfied customers. The size of the demand means that there is room for everyone, also as a subcontractor.
Myth 2 - Small businesses have no chance of making big profits
Not every construction company is able to implement large road or architectural projects worth tens of millions of zlotys. However, when analyzing the profits of construction companies, dealing with, for example, apartment renovation and replacement of installations, it can be noticed that the labor costs are around 30-40%. This is quite a lot, considering that due to high demand, small construction companies can boldly negotiate terms of cooperation.
Myth 3 - Winter is a dead season in construction
Although negative temperatures inhibit the development of works outside the buildings, they do not prevent the works from being carried out inside the buildings. In addition, construction companies should use every "spare moment" to develop their activities, for example in the form of preparing marketing plans, online presence strategies, visual identification and order portfolios. Winter is also a great time to actively search for new customers. For example, through creating websitesthat sell even better - and scheduling work “in season”. These are activities that will pay off in the future.
What development challenges do construction companies face?
The person managing a construction company has many responsibilities. Starting from setting work schedules, through their settlement, keeping investment documentation and reporting the course of works, to planning further activities and maintaining proper communication with potential clients. Given the high cost of labor, most of these tasks rest on the shoulders of one person, which unfortunately does more harm than good.
There is a belief in the construction industry that the best form of advertising is the work done. And although this is true, the skillful and effective presentation of the portfolio to an unknown group of recipients is a real challenge. Build attractive and appropriate positioned a website and running engaging and popular profiles in social media require appropriate communication skills and creating appropriate experiences, so it is worth commissioning them to an experienced marketing agency.
An equally important aspect of running a business in the construction industry is taking care of public relations and maintaining the appropriate level of customer service. If a company wants to be perceived as modern and professional, it should also focus in its daily activities on implementing solutions supporting contact with customers and creating an offer in terms of specific needs and preferences.