This Podcast Is Episode Number 532, And It's About Adapting Your Construction Business To A Slower Economy It's hard to go a day without reading something in the news about the state of the economy. Whether it's interest rates rising or the cost of living, there's no getting around the fact that in 2023 there are many doing it more demanding than a few years ago. But while there are some economic challenges for individuals and businesses, it's important not to go too far down the rabbit hole. Remember – economic conditions are forever changing, and history tells us things can change anytime. If you're concerned about the economy's impact on your business or have already experienced its effects, read on. In this article, we'll explore ways to adapt and improve your construction company during slowdowns, so your business can emerge more substantial when the market bounces back. Take the time to understand your market conditions   The news can often overwhelm us with negativity. While staying informed is crucial, consuming every opinion piece and social media commentary can lead to a negative mindset. Instead, focus on your own business and industry to identify the real challenges you're facing. Research might even uncover some opportunities too.   As a construction business owner, adapting to a slower economy can be challenging. However, there are several steps you can take to keep your business afloat during tough times. One of the most important things you can do is to focus on efficiency. Look for ways to streamline your operations and reduce your expenses without sacrificing the quality of your work. This might mean cutting back on specific services or finding ways to complete projects quickly. Consider the following: Have there been changes in your industry or the way customers behave? Can you identify any new, untapped opportunities? Are there any emerging trends that you can take advantage of? Understanding your business' position in the market and identifying opportunities to differentiate from competitors is crucial. It guides your marketing budget allocation and shapes your products/services. A chance to improve efficiency If your business is experiencing a slowdown and you have some extra time, it's an excellent opportunity to improve it. Many business owners find prioritizing improvement initiatives over customer or administrative tasks challenging, but now you can focus on executing those long-standing plans. These activities can make your operations more efficient and will be even more beneficial once things pick up again. Documenting processes Capturing your business processes is a valuable way to improve efficiency. Documenting procedures and creating visual aids can help onboard new team members faster and safeguard against knowledge loss. Protecting your business from the risk of key personnel leaving is essential. Automation Artificial Intelligence and automation are changing everything. Explore how these technologies are used in your trade to streamline tasks like data entry, reporting, and inventory management. Update old systems Migrating from one system to another can be complex and time-consuming. Businesses often stick with legacy systems for longer than necessary. But new tools can speed up daily tasks, benefitting long-term business growth. These new tools are good for business long term. Exploring different revenue streams Consider exploring additional offerings if there is a decline in demand for your core services or products. By diversifying, you'll better weather economic downturns and ensure a steady revenue stream. Service-related Consider your team's existing knowledge. Can you broaden your work to capture more clients? For example, if you're a builder who completes new builds, think about how you can communicate your skills for property maintenance, custom carpentry, outdoor living spaces, or project consulting. Your skills and industry knowledge can be used in...

This Podcast Is Episode Number 531, And It's About A Guide To Building A Solid Construction Company Marketing Plan When it comes to the construction industry, employee training and development is crucial for success. Providing employees with the necessary skills and knowledge can make their work more efficient and effective, leading to higher-quality results and increased productivity. From safety training to technical skills development, a variety of areas can be focused on in construction employee training and development programs. Investing in these programs not only benefits employees but also improves the overall success of the construction company. Don't have an employee? As a construction company owner, it's important to prioritize investing in yourself and your growth. By paying yourself first, you'll be better equipped to make intelligent investments in your construction business and provide valuable training and development opportunities for your soon-to-be employees in the industry. This can lead to a more skilled and efficient workforce, which can ultimately help your business thrive. Let's say that you have two people working for you, one is your apprentice, and the other is your office administrator; developing employee skills for them and yourself creates a situation where your construction company benefits from a more knowledgeable and capable staff while your whole team gains additional skills or qualifications. This can allow employees to further their careers and possibly increase their earning potential in the long term.  Training and skills development can assist underperforming employees and be used to encourage talented employees, allowing them to grow within the business. This helps both individual employees and your business achieve their full potential. Some business owners worry that training and development can cause an employee to seek additional responsibility elsewhere. But it's also worth bearing in mind that driven and successful employees will lose interest in their job and leave if it doesn't allow them to develop their skills. To develop skills as a construction professional, starting with a solid foundation of knowledge and experience in the industry is essential. Here are some steps you can take: 1. Set a training budget Consider setting aside money for staff training and development in your annual budget as you'd budget for other necessary business expenses. You could claim the training costs as a business expense or negotiate more expensive training as part of a salary package with employees. 2. Draw up a training policy A training policy doesn't need to be too in-depth, but it should set out any special requirements so your employees know what training you'll consider and what requirements they'll have to meet to benefit from company-sponsored training. You could require that: Training needs to be job-related for the company to pay for it. Employees pay 50% of the course fee if training is helpful to the company but not necessary for their job. Employees reimburse costs (if completely necessary) if they don't complete or pass the course. 3. Discuss career goals and opportunities. Discuss short- and long-term career goals during performance reviews or employee conversations. You can decide how to match their goals with any short and long-term opportunities available in your business. Training in areas that do not further your employee's short- or long-term career goals will not be embraced as enthusiastically, so it makes sense to plan future development to balance business needs and employee goals. 4. Identify employee strengths and weaknesses One of the best ways to get agreement on the appropriate training is to collaboratively identify the strengths and weaknesses of each employee for any current and future roles they might play. Start by identifying the skills they'd need for the job. Then ask them to identify the skills they have and list their strengths. Then ask...

This Podcast Is Episode Number 530, And It's About How To Manage Your Construction Company Payroll Effectively Payroll is one of those things that starts simply enough. You start your construction business and hire a few employees, and things tick along. It's straightforward enough to keep everything in line at first, but what happens to most companies is… they grow! This is a great thing, but it also means that payroll becomes more complicated. As such an essential aspect of your business, payroll must run smoothly. Getting paid is, after all, the primary reason that most people come to work.   One of the biggest challenges contractors face is keeping track of overtime hours. With so many employees working on different job sites and projects, it isn't easy to calculate their overtime pay accurately. Complying with all federal and state labor laws is another essential aspect of a construction payroll system. This includes appropriately classifying employees as exempt or non-exempt, withholding the correct amount of taxes from their paychecks, and providing accurate wage statements.   Here are some tips for managing payroll effectively: 1. Simplify Payroll is one of those things that can be overly complex, and the importance of simplifying it can't be overstated. Many small and medium-sized companies have quirks in managing their payroll. This can make it difficult for somebody else to step in or for someone new to be trained. Keep things as simple as possible wherever you can. One way to do this is by switching to direct deposit. This will drastically reduce the work put into issuing and tracking payments. 2. Schedule At least once per year, and preferably more, it's essential that your payroll professional take some time to create a payroll calendar. This will allow them to highlight any dates that may cause a lag in your employees' pay. It will also allow you to plan for any potential shortcomings or other issues arising from holiday closures or oddities in the calendar. Making a payroll mistake is a surefire way to lower employee morale, so it's important to be aware of these dates ahead of time. Once compiled, distribute the calendar to your managers so that they can communicate the information to their employees. This will keep everyone apprised of any potential delays in getting paid that may come up. 3. Automate The computer can be your best friend. Finding the right software to help with payroll can automatically take care of simplifying and scheduling, freeing up valuable time for your payroll specialist. It also eliminates the potential for human error in payroll processing and creates a crystal-clear picture of your finances. Many options are available these days that are easy to learn and straightforward to maintain. 4. Brush up Payroll rules and regulations can change frequently and for any number of reasons. It's important to stay informed on any changes in your region and proactively plan for them. A lot of time can go into correcting a payroll error, so know what's happening to avoid this. With more and more employees being hired remotely, it's also important to be aware of any regulations about those geographically located in a different area from your business. 5. Get help There comes the point for all growing trade businesses where they have to outsource their payroll processing; if this is you, congratulations! It is truly a milestone. There are many options out there regarding hiring a payroll specialist, and many of them are available online. Choose the one best suited for you and your business needs without leaving your desk. This takes the pressure off you to know all the nitty gritty details about payroll processing. By hiring an outside professional, preferably a construction payroll specialist, you can ensure your employees will be paid correctly and on time. Payroll Options While every contractor recognizes the flaws of using ineffective tools, they may still be losing money due to...

This Podcast Is Episode Number 529, And It's About A Guide To Building A Solid Construction Company Marketing Plan As a contractor, having a solid business plan is essential for growing your company and attracting new clients. If you're serious about getting the best value you can for your marketing budget, you'll need to develop a marketing plan. One of the first steps is to identify your target audience. Who are your ideal clients? What are their needs and pain points? Once you understand your target audience, you can develop a marketing strategy that speaks directly to them. Building a solid construction company marketing plan is essential for any business owner looking to grow their company. With the right strategy, you can increase your brand awareness, generate leads, and ultimately boost your revenue. Some critical elements of a successful contractor marketing plan might include the following: 1. Knowing your customers Firstly, you need to identify your target market. You probably have an idea of who buys from you, but make sure you: Define your target market in detail. Write down who your target market is. To help you focus your promotions more effectively, spend time finding out about your client's preferences and habits. To get the best return on your investment, look at how your message is structured, worded, and designed – and where and when you advertise. 2. Studying your market Market research is an effective way to help find out about your target market. Ask customers for feedback directly or send them an email. Ask questions such as: Why did you hire us? What could we do better? What additional services would you like us to offer? Your clients' responses will highlight what works well and will help you attract more sales. This feedback can also help improve your service and encourage positive word-of-mouth referrals. Show that you're listening and improving where you can, and you'll gain greater customer loyalty. 3. Identifying your competitors Find out who your direct competitors are – and gather as much detailed information about them as possible. Try: Visiting their websites Reviewing their advertising and promotional leaflets. Observing their relative strengths and weaknesses. If you want consumers to differentiate between you and your competitors, develop a new marketing and advertising approach. Your competitors' weaknesses will present opportunities for you to market your points of difference. 4. Determining your competitive advantage When it comes to the construction industry, there's no shortage of competition. Many companies are vying for the same contracts and trying to build a reputation for quality work. But how can you set yourself apart from the rest? How can you create an advantage that will help you win more bids and secure more business? Sit down with your staff, advisers, and mentors to brainstorm the best competitive advantage for your business. Your competitive advantage can be anything that sets you apart from your competitors in your target market – such as price, service, or location. It should be something that: Makes you stand out from the crowd Exploits a gap in the market that your competitors haven't thought about Suits your business and the current market condition Is essential to your target customers   Use it in all your marketing after you've worked out your competitive advantage. Ensure that your competitive advantage is evident in any customer communication. One key factor is innovation. Look for ways to incorporate new materials or processes into your projects to give you an edge over your competitors. Maybe you can find a way to use eco-friendly materials that are more cost-effective in the long run. Or perhaps you can streamline your construction process to save time and money. Another factor is reputation. Word of mouth is compelling in the construction industry, so ensure you deliver quality work and treat your clients well. Be...

This Podcast Is Episode Number 528, And It's About Construction Accounting Concepts You Can Benefit From Today   As a small business owner, you know that managing your finances is crucial to the success of your business. But with so many accounting principles and practices, it can be challenging to know where to start. That's where we come in! This guide will break down the essential accounting principles that every small construction business owner should know. We'll discuss how these principles can help you keep track of financial transactions, create accurate financial statements, and make informed decisions for your business. So, let's dive in, shall we? Why Are Accounting Principles Important for Construction Businesses? Accounting principles are the foundation for any successful business. They provide a uniform framework for recording and reporting financial transactions, ensuring consistency and accuracy in your financial records. By adhering to these principles, you'll be able to: Make better financial decisions based on accurate and reliable data Monitor your business's performance and identify areas for improvement Meet legal and regulatory requirements for financial reporting Build trust with investors, lenders, and other stakeholders   All Accounting Uses The Same Accounting Equation Assets = Liabilities + Equity Regarding construction accounting, several concepts can be highly beneficial to understand. Here are a few you can start taking advantage of today: Construction Accounting Vs. Regular Accounting Not everyone knows what construction accounting is, and easy to assume all accounting is the same. Construction Accounting Is Used - When the entire place of business is packed up and taken to the customer. In essence, you are selling, assembling, delivering, and installing a customized product from a mobile shop on location. Think of it like shooting a movie on location without all the glamor, resources, and money to go with it. Why is there confusion? From a tax standpoint, most construction projects are all lumped together, and after the Cost of Good Sold, Expenses, and Depreciation, you either made money or didn't. The Tax Accountant rolls the numbers to compute the annual tax return. Therefore, if the information is not needed to be broken down for taxes, then the Tax Accountant is not concerned. As the Construction Contractor paying the bills, you are constantly concerned about which jobs are "Making Money or Losing Money." "Why does it seem like I am watching the money fly by and zooming out of my checking account? It never seems like there is any money left over!" Materials A construction contractor may purchase material and resell it to their customer. Thereby thinking it is a reimbursable expense. (You lose money when doing this).  Remember all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) are income. Every line item on a customer invoice is ALL INCOME. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Washington State, for instance, has a clear explanation.  Purchases for the material are Cost of Goods Sold or are expenses if you are short-cutting your accounting. I have seen financial statements backed out because they will reflect reimbursable income as a negative number, thereby showing it as a deduction. (The net effect is double dipping on the expense side) The cause is that the accounting software is not correctly set up.  Cost Of Goods Sold (COGS) It appears regular bookkeepers over their heads with construction accounting are trying to figure out how to input new QuickBooks transactions by copying previous transactions. This is not an issue with regular accounting because there is only one or two costs of goods sold accounts (COGS), no direct COGS, no indirect COGS, no Work-In-Progress (WIP), no retention, no job costing allocation to consider, and only one customer...

This Podcast Is Episode Number 527, And It's About Leading Causes Of Stress For Contractors And How To Counter Them Construction business owners face various sources of stress that can negatively impact their well-being and overall business performance. Some leading causes of stress for construction business owners include financial pressures, tight deadlines, workforce management, safety concerns, and regulatory compliance. If not adequately addressed, these factors can lead to burnout, decreased productivity, and even business failure.  Many entrepreneurs believe hard work and determination are all it takes to build and sustain a successful business. But when you consider the pressures of running a company, it seems wise to add effective stress management to the list. Left unchecked, stress can erode your passion and undermine performance – not to mention a severe toll on your health. Are you wondering how to stop stress from derailing your productivity, profits, and overall well-being? Follow these practical tips for avoiding the main causes of "business burnout." Cause: So many tasks, so little time Solution: Without effective strategies for managing time and sharing the load, you'll be forced into a reactive versus proactive position – the perfect storm for chronic stress and impaired decision-making. Prioritize your tasks. Make a to-do list and prioritize your tasks based on urgency and importance. This will help you focus on what must be done first and avoid feeling overwhelmed. Use a project management tool to organize and assign tasks, track progress, and share results with clients. Don't try to do everything yourself. Delegate tasks to reliable and competent employees or outsource them to a trusted contractor. Hire an accountant to help you navigate taxes and implement time- and money-saving financial solutions year-round. Cause: Cash Flow Solution: All businesses, particularly start-ups, must have enough cash to keep running after covering monthly expenses. Cultivating a consistent cash flow is crucial for managing your finances and stress levels. Here are a few ways to stay cash flow positive. Follow up promptly on unpaid bills, and consider offering an incentive for early bill payment (such as a slight discount when payment is received within five days of invoicing) Be wary of slashing prices: if you must mark down a product or service, be sure you can recover your costs elsewhere. Think "less is more" when purchasing inventory to avoid sinking precious cash into excess stock. Have a trusted employee monitor your cash flow and inform you once it dips below a certain threshold. Again, this is where your construction bookkeeper comes in. I recommend reviewing your . Cause: Attracting New Clients Solution: Starting to panic because you keep missing your sales goals? Auditing your current approach and implementing better growth strategies is critical to alleviating that stress. Here are a few ideas to get started. Drill down into the behaviors and preferences of your customers, so you can better target your marketing. Analyze each step in your sales process to see where the holes are and tighten your approach. Use your audience research to develop a new product or service that fills a unique need for your customers and gives you a leg up on the competition. Practice self-care. Taking breaks throughout the day is important to clear your mind and recharge. Go for a walk, grab a snack, or do something you enjoy. Take care of yourself physically and mentally. Get enough sleep, exercise regularly, and eat a balanced diet. Consider meditation or other relaxation techniques to reduce stress. Final thoughts Starting and growing a business takes tremendous energy. But by leveraging skilled help and improving key management processes, you'll learn to pace yourself – and keep that passion burning for years to come.  Running a construction business is...

This Podcast Is Episode Number 526, And It's About Becoming A Better Construction Company Owner By Developing Courage Fear is a natural, emotional response to distress. The evolution of humanity was dependent upon feeling and responding to fear. Unfortunately, for some of us, fear is a stumbling block to unlocking our full potential and becoming great leaders.  Fear can have a significant impact on business activities. If a business owner is afraid of taking risks or making decisions based on past negative experiences, it can hinder their success. It's important to remember that fear is often based on False Evidence Appearing Real or F.E.A.R. It's crucial to approach business decisions objectively and not let fear cloud judgment. By recognizing and addressing fear, business owners can make informed decisions that lead to success. The good news is that courage is like a muscle, and when you exercise courage, it often becomes more robust and more natural. Here are a handful of ways to overcome fear, find courage and become a better construction company owner. 1. Don't lose your sense of direction If you struggle to lead in your construction business or manage your employees, staying connected to your purpose for making your decisions is essential. If you lose your sense of direction, the people you are leading may begin to question your ability and authority. When giving instructions to someone you are charged with leading, be specific about what needs to be done and why. 2. Visualize all of the possible outcomes Visualizing a negative outcome may seem counter-intuitive to building courage; however, realizing that the worst that could happen is not fatal in most situations is incredibly beneficial. Conversely, visualizing a positive and prosperous outcome can give you the bravery to make risky choices and stand behind them occasionally. 3. Be willing to do what other leaders won't If you are surrounded by leaders who continually play it safe but are sensing a need to take the road less traveled and make a bold decision, be willing to do it! The fear of people around you disapproving of your choices can be crippling. But the sense of pride when you carefully calculate your options and make a bold choice that turns out well, will strengthen your sense of courage. 4. Carefully consider the opinions of people around you You don't need to allow yourself to be persuaded by the opinions of others in any way, but occasionally a new view from someone with less experience can bring new life into your construction business. Don't let your employee's inexperience cause you to overlook the great ideas they may occasionally have. Be willing to do things someone else's way occasionally bravely, and your courage will undoubtedly increase. 5. Be willing to commit to success Have the inner strength and courage to keep going even when things get tough because you know that everything will work out in the end; if something has not worked out yet, it is not the end. 6. Make the hard decision and say "no" As uncomfortable as it can be to shut down someone's idea, it is necessary sometimes. Next time someone has an opinion you are completely uncomfortable with, respond by telling them no. Often, no explanation is better than a long explanation when you disagree with a person's idea. As a leader, it is right to go with your gut instinct and override decisions you disagree with. Saying no to bad ideas will increase your courage and even the level of respect your employees have for you. As you can see, building courage is not a complicated process. Building courage is simply taking small steps in your daily life and being unapologetic about doing what you know is right. If you are willing to commit to taking the above steps as a leader, you will soon become more confident in your decisions! Many leaders struggle to feel courageous regardless of their time leading. Fear on all sides Contractors without financial reporting systems they can trust...

This Podcast Is Episode Number 525, And It's About Building A Competitive Advantage In The Construction Industry A competitive advantage is something that you offer or have that the competitor does not. There must be compelling reasons for people to do business with you rather than with other construction companies. The need to identify your point of difference is essential. The more similar your business is to many others, the greater your need to develop competitive advantages. The key to benefitting from the competition is knowing how to take on competitors so your company earns a profit effectively. Look into your industry and the successful contractors around you not to lose sight of your vision for your construction company but as an inspiration to guide your systems and processes. Identifying your advantage A competitive advantage is what you are better at doing than anyone else. The wiser you can be about developing and promoting your competitive advantage, the better placed your business will be to succeed. Think about how you can differentiate yourself: Low pricing – you're able to supply the most budget-friendly service. Specialization – you service a specific niche market better than anyone else. Differentiation – you have the same service as others, but you make it different. Specialization and differentiation are the most common small business strategies because more significant businesses can usually get bulk deals and compete on price. Being affordable is the most straightforward tactic to implement (reduce all your fees but know your worth), though this is the last thing to consider, as it is often a losing strategy. The chances that you can be the cheapest and survive are not good because you will usually compete against companies with far more financial muscle than you have. Having the most considerable margins is your ultimate goal. You can position yourself away from the cheap end of the market if you develop other competitive advantages, such as excellent, friendly service, good after-sales service, a more specialized range of products, more knowledgeable staff, and so on. Here are some ways to get ahead of your competition and grow your construction business: 1. Awesome staff Your staff will be one of your best (or worst) competitive advantages. The advantage of having friendly, knowledgeable, proactive staff must never be underestimated. The key is ensuring your staff is motivated, trained, and performing well. Do this by: Establishing clear performance standards. Starting incentive schemes. Sending them on training courses. Encouraging them to develop their product/service knowledge. Holding yearly selling courses. 2. Unique or exclusive products You have an advantage if you can source products or deliver services that the competition cannot. If you're competing against larger or similar businesses, can you establish a reputation for unique products people can't find anywhere else? 3. A great website A website that is more attractive or easier to navigate than competitors can be a distinct advantage. Can you create a better, more effortless online scheduling experience? More competitive payment options? 4. Become a star Your own image can be a competitive advantage. No one else has quite your mix of skills, and you can build a 'character owner' image by having your name on as much material as possible, including: A signed mission statement for online and in-person visitors. Signing your name at the end of all newsletters and correspondence. Offering personal guarantees. Becoming prominent in your community. Becoming an authority in your field and a spokesperson for the industry. 5. Brush up on your technical knowledge If you can't compete on price, offer superior knowledge to other businesses around you. Consequently, it would be best to ensure staff are well trained. You could ask your suppliers to provide training. 6. Get to know your suppliers Being on good terms...

This Podcast Is Episode Number 524, And It's About How To Increase Your Construction Business Profit In Three Months Sales and profit are two very different things – as a construction business owner, you can find yourself without the cash to pay bills despite making sales you knew were profitable. You may also be startled to discover that solid cash flows from sales deliver little profit.   A cash flow forecast tracks cash flowing in and out of your business. The timing of these flows enables you to identify cash-rich and cash-lean periods. This helps make the right decisions, such as buying assets or preparing for cash shortfalls.   Cash flow is essential to the survival of your business – arguably more so than profit in the short term. Profit may be necessary for the longer term, but cash is needed to pay bills and operating costs quickly.   For example, if you're a plumber with reasonable cash reserves, you can survive until your business becomes profitable. However, if your business runs out of cash, you'll need to find a solution quickly to avoid going bankrupt.   Profit is the money left in your business after all your expenses have been paid. An income statement (also referred to as a profit and loss report) reveals what profit your construction company made last month or last quarter. Your profit's detailed in two figures, namely: Gross profit is what's left from sales after deducting the costs of goods sold or services provided. Net profit is left from gross profit after operating expenses (your business overheads) are deducted. Note that net profit isn't the final 'bottom line' profit until all taxes have been paid. Gaining more significant profits depends on accomplishing all the little things better – rather than making one huge change. You'll need to focus on every detail to reduce expenses and increase your sales turnover over the next 90 days. Decreasing your costs For most small businesses, reducing costs is the easiest way to increase profitability. Reducing direct costs can dramatically increase your sales profit while eliminating unnecessary business overheads. Challenging your direct costs Identify the steps you can take to minimize your direct costs, such as: Negotiating lower prices with your suppliers. Reviewing processes and systems to minimize waste. Implementing additional security to reduce the chance of theft. For example, you may have had one material supplier over the last five years. It might be time to challenge your supplier on their wholesale prices while introducing yourself to others who might do a better deal. Some of your business costs, such as insurance, power, and the Internet, could be put out to tender. The value of effective systems Practical systems help you minimize errors – and save time and money. The time invested in creating designs is usually minimal compared to solving a problem from scratch. Where appropriate, turn decisions into policies to avoid making the same decision again – or sort out the same issues repetitively. Learn from mistakes and problem areas, and if systems go wrong, fix them. It's a wise idea to review your procedures periodically to see where improvements can be made. For example, if your software firm decides to place all its information on a central server to ensure staff can access it at any time, hours of productivity can be saved each week. Stay focused on profitability Focusing staff awareness on profitability can have a dramatic impact. Even if cash flow is your top priority, it shouldn't be at the expense of profitability. Monitor your actual costs against your budgets and your sales against your forecasts. Measure staff performance Monitor and measure staff performance and productivity. Be sure to reward productive staff members by linking pay rates to effectiveness. It's important to praise and thank the staff when it's been earned. Aim to provide a clear career path so your team can grow, and they don't see...

This Podcast Is Episode Number 523, And It's About Ways To Keep Your Construction Company Sustainable Taking steps to create a good foundation in the early days of your business is essential for a sustainable and profitable future.  It's rare these days that your prospective leads happen to find your construction business and become a client with no work. Your company has to grab people's attention, turn curious visitors into leads and then convert those leads into sales. Keep in mind: Marketing-Accounting-Production The first thing I would like to point out is: 1. Don't neglect Marketing Entrepreneurs like you are incredibly busy, and finding the time to promote your business can be a real challenge. The other challenge for new trade companies is money—but every small business needs to invest in marketing activities to increase sales and keep the cash flow flowing. It's wise to be wary of costly large-scale marketing strategies when you're just starting. The best use of your time in the early days is getting to know your clients and how they tick so that you can design (or hire an expert to mastermind) highly appealing, cost-effective campaigns. And don't turn a blind eye to what your competitors are up to. Monitor how they attract new customers and think about how you can improve on what they're doing—or take a completely different approach to promote your business that will help your young brand stand apart. This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are contacts engaged in your business, fit your client persona, and are at least somewhat motivated to hire your service. Here are four great ways to get more leads for your business: 1. Target your ideal clients You might want your business to be relevant to everybody, but the reality is that there is a specific target client who is ideal for your business. Those clients are the ones who are most likely to be attracted to your services and, therefore, the most likely to hire you. These are the people to aim your marketing at. Knowing who they are and what they like helps you develop the products and services they'll use. It also saves you money on marketing because you can target your ideal clients rather than marketing to everybody and hoping somebody shows interest. Even more critical, when you understand your ideal clients, you can build connections with them more effectively, generating leads that can turn into sales. 2. Know your unique value proposition Your unique value proposition is what makes you different from your competition. Every business has something that sets it apart and attracts a specific market. Your products or services might be of a higher quality. You might have better loyalty programs or more specialized staff. Even the size of your business can be a unique value proposition. Smaller companies can claim more personal, attentive, and efficient service for their clients.  Determine what differentiates your construction business from your competition and use that uniqueness in your marketing. 3. Attend networking events Yes, in-person marketing takes time and energy, and you can only talk to so many people simultaneously. But hearing an entrepreneur speak passionately about their business can be very persuasive. Networking events are a great way to get face-to-face time with potential leads. Meeting people at events lets you talk directly to potential clients and hear what issues must be solved. Just make sure the networking events you attend are relevant to your business and are functions that your ideal clients attend. Otherwise, you'll be wasting that valuable time and energy. 4. Create high-value content With so many people using the Internet to find companies and make purchasing decisions, you must ensure your business is easily found. That means developing attractive, high-value, informative website content that is compelling and encourages page visitors to submit their...