Cutting Costs Not Corners – Ways To Save Money Running A Construction Business

April 22, 2019 8:59 pm

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Construction can be an incredibly rewarding sector to enter as a new entrepreneur. As well as the personal satisfaction you will get from helping others and building amazing creations with your own hands, you can also generate a good profit. Although the competition is fierce, the demand for your services will be too, so finding work shouldn’t be too problematic. The biggest issue that you will face as a construction business owner is the large overhead costs. With that in mind, here are seven ways to save money running your business without cutting corners.

1. Use Digital Marketing Strategies

Construction companies may be in high demand, but that doesn’t mean that clients will just start knocking at your door the day you launch. As with any other, you need to market your business to make this happen. Unfortunately, the cost of marketing can quickly get out of hand, which is why many choose to cut it from their budget when money gets tight. Instead of doing the same, you should try low-cost digital marketing tactics, like social media, content, and email marketing.

2. Hire Highly Trained Workers

While some businesses can be run almost single-handedly, most construction ventures require a team of workers to handle the workload. This will always be a significant expense but will work out more costly in the long run if you opt for hires with little to no experience. After all, you’ll have to invest even more time and money into training them. Because of this, you should spend out a little extra on highly trained multipurpose workers. This also requires you to hire fewer people.

3. Look Into Automation Software

You may need physical employees to complete a lot, if not all of your business’ construction work, but that doesn’t mean that every task that needs completing should be done the same way. There are many smaller, repetitive jobs that can easily be dealt with using automation software. These include posting to social media, ordering supplies, submitting invoices, and more. By utilising automation, you can limit human error and hire fewer permanent employees.

4. Rent The Best Tools

Cheaply made equipment and tools will waste both your time and your money. For this reason, you’re much better off investing in quality tools that will actually last. If this is something that you can’t afford to do right now, then rent your tools from a company, like City Hire instead. This cuts costs in the short term, allowing you to save up for the best tools, rather than paying out over and over again on ones that won’t last. Having the best tools possible will also boost your image.

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5. Shop Around For Materials

Contrary to popular belief, you don’t always get what you pay for. If you think that you’re shelling out too much on construction materials, then you probably are. Thankfully, there will surely be plenty of suppliers offering the same quality materials for hugely different prices. To ensure you get the best deal possible, you should conduct research and spend some time shopping around and comparing different companies. This requires some time, but the savings will be worth it.

6. Negotiate For Better Prices

You may have been paying the same price for the same supplies for as long as you can remember, but that doesn’t mean that you should continue to do so. There are plenty of suppliers out there who can offer you the materials that you need. This means that your supplier probably needs you a lot more than you do them. Use this to your advantage and try to negotiate a better deal. Most companies will happily offer you a discount if it means that they keep your business.

7. Talk To Your Team

Employees are often much smarter than their bosses give them credit for. If you’re struggling to find ways to cut overhead costs, then speak to your team and see if they have any ideas. In any other business, introducing an open door policy would be beneficial here, but, since your workers probably don’t have offices, you should let them know that you’re always available to talk. This shows that you care about their opinions, which will also go a long way to reducing turnover.

All businesses come with overhead costs, but those associated with the construction industry are typically much larger. Unless you can get a handle on your finances, then you could start to struggle. Hopefully, with the advice above, you find it a little easier to cut costs without cutting corners.

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