For this week’s blog, we are going to be discussing 5 ways to grow your construction business. If you are new here, inBuild is a software that is designed to automate the accounts payable process in construction finances. Currently, the construction market is booming. While we are all learning to live both personally and professionally in a COVID world, many homeowners are moving, building, or making home improvements. Below are 4 ways to grow your construction business:
- Automate Your Accounts Payable Process: In a market surge, many companies are taking on more projects. Automating your accounts payable process has never been more important. As we’ve discussed, bookkeepers manually process hundreds of invoices per month. Automating your construction finances will reduce time spent on data entry and invoice processing while improving efficiency and accuracy. Interested in learning how you can save time and resources on automating your financial process by 92%? Click here to request a demo today.
- Carefully Choose Clients: With a surge in the construction industry, comes more opportunity. It can be difficult to choose your clients wisely. There are a couple of factors to consider when you are hoping to grow your business:
- Is the project close to your home office to easily do in-person check-ins with your subcontractors?
- Do the subcontractors have a reliable payment history?
- Do your services match the clients' needs?
- Manage Payment Expectations: When first meeting with new clients, it is important to set clear and realistic payment expectations. Clients who are renovating or building a new space tend to underestimate the true cost of the project. Before construction begins, outline the potential cost of their needs as accurately as possible to instill trust and honesty between parties.
- Protect Your Profit: In growing your business, protecting your profit is critical. The cost of materials is constantly fluctuating. Calculating accurate growth forecasts due to the unpredictability of these costs is difficult. Two things to consider would be to manage change orders for your Cost-Plus Contracts, as well as integrate your labor cost reports. These two things may help reduce additional risk in a booming market.
These 4 ways to grow your construction business are equally important. By automating your accounts payable process, carefully choosing clients, accurately managing payment expectations, and protecting your profit you will grow your business!