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Many construction companies start out working in the residential sector, doing work on people’s homes. This can range from small repairs to full extensions and it’s possible to build a great business doing residential work alone. However, it’s in the commercial sector where you find the biggest contracts and if you want to expand your construction business, you need to find ways to win those big jobs.
Commercial construction work offers longer projects and more regular work, so your business is more stable. Although it often has longer payment terms and you need to find more subcontractors to work with, your business will ultimately be more successful. So, how do you make the jump into the commercial construction industry?
Invest In New Equipment And Vehicles
A small construction business most likely isn’t equipped to take on big commercial contracts because they don’t have the necessary vehicles and equipment. If you’re ever going to successfully move into the commercial sector, you need to make a big investment in your business and upgrade your assets. However, making that investment before you start getting paid for commercial contracts can be tough. It’s best to use companies like Flex Fleet Rentals to hire more vehicles and rent any tools you need for the first few jobs. Once you establish your business and see significant growth, you can then think about reinvesting your profits and buying new vehicles and equipment of your own.
Bid On Government Projects
Government building projects are very lucrative and they’re a great way to establish a reputation for yourself. You can bid on these projects and if you win them, they’re a great source of income. In fact, many construction businesses rely solely on government contracts while others rely on a mix of government and private commercial jobs. Before you start bidding on any contracts, make sure that your business meets the requirements. Just don’t expect to win every single contract you bid on because they’re very competitive. Give it time and keep throwing your hat into the ring and eventually, you will get somewhere.
Learn To Network
Networking is key to breaking into any new sector, especially if you want more commercial jobs. So, why not attend business networking events and advertise your services to anybody that needs a new office building or renovation? You could also try to connect with real estate developers that have land they want to build on. The more time you spend networking, the easier it will be to source private contracts.
Rethink Your Brand
A small construction company that mainly deals with residential clients benefits from a traditional, down to earth brand. The kind of branding you expect from a family business, for example. But when you are trying to land those big commercial contracts, you need to rethink your brand and focus on boosting brand awareness. You need to show businesses that you are a modern construction business that is well versed in all of the most up to date technology and construction techniques.
Growing your construction company and moving into the commercial sector can be a big risk, but if you keep these tips in mind, you can pull it off.
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