If work is piling up faster than you can complete it, your contracting business may be ready for an expansion. But, are you really ready to hire new employees or move to a bigger location? If you don’t have a plan in place, the answer is no. In order to grow sustainably, you may want to follow these four business strategy steps.
Establish Attainable Goals
Business growth is not something contractors can approach haphazardly. You must know where you are, where you are going and how you are going to get there.
These goals will vary from company to company. For example, one contractor may be planning to add a member to its team, while another may be in the market for new construction equipment.
Whatever goals you decide to set, it’s better to choose things that are within reach. By first outlining a desired result, you will add a focus to your growth plan that will contribute to your future success.
Analyze the Competitors of your Contracting Business
As you prepare to grow your business, you must also examine the competitive landscape. This analysis will inform many of your future decisions.
For example, if you are thinking of expanding into a new neighborhood or city, you will want to know which companies are already doing business in this market. A competitive analysis is an important step, because you will learn more about available business opportunities.
Create a Path for Sustainable Growth
Every contracting business must create its own plan for growth, because every company expands under its own unique set of circumstances.
As a business owner, you need to research your options for expanding segments of your business and how they will affect your existing services.
For example, your problem may be that your HVAC company is drowning in paperwork. Your solution to this problem could be to increase the size of your administrative staff. But before you start interviewing candidates, consider whether you can afford the increase in payroll. The biggest mistake any growing business can make is adding expenses it cannot afford to carry.
Revise your Business Strategy
As you make decisions about your company’s future, you should create a structure that will help you sustain growth. You may realize you need to revisit or revise some of your previous decisions, but that’s normal. If you follow this simple process, you will be better equipped for more sustainable growth.