How to Increase Operational Profitability in Construction
Ready to make more money at your construction business? Concentrate on increasing operational profitability. This tactic can work much better than taking on more clients and doing more work. In fact, you may not have the bandwidth to take on additional work right now. Instead, work on streamlining and automating your operation. Then, you’ll free up more time and resources to add new projects–and each one will be easier (and less costly) to complete. Here’s how:
Create business processes
Find the best way to accomplish common tasks and make it company policy. With cleaner, less complex processes (and with everyone doing things the same way) you save time and can improve accuracy. You may also increase customer confidence with more consistent, professionally polished, outcomes: met deadlines, accurate record-keeping, consistent followup, etc. Once you’ve streamlined operations, it will take less people to run your business, better than ever before.
Use a customer relationship management solution (CMS)
Analyze customer data to find your best customers, segment your client list and cater to important groups. Use the business intelligence to further increase operational profitability for your construction firm. Automate followup communication and marketing massages, tailored to each customer segment to maintain client relationships without investing much time, until they’re ready to buy again.
Collect project details in one spot
Research and choose the best construction project management software. Key people on each project should enter progress reports daily for your review. This keeps projects organized and on time to increase operational profitability. If something falls behind, you’ll be fully, immediately informed–so you can do damage control with your client. As project info accumulates, use the data to create better estimates (and more reliable project timelines) for different types of projects. With accurate project estimates, you can exceed customer expectations. Determine which types of projects go most smoothly for your team, and go after more of that category.
Tie customer and project software in with your financial program.
Make sure they’re compatible. Now you can attach dollar figures to clients and project types. This data helps support, evaluate and improve future business decision-making. Pull together project reports whenever you want/need an update.
For specific guidance on how you can increase operational profitability in your business, contact Speritas Capital Partners at 203-247-4358 today.