DIFFERENTIATE YOUR CONSTRUCTION BUSINESS FROM YOUR COMPETITORS

The construction business grew steadily over the past couple of decades, and the number of contractors tripled. However, the effective net amount of construction has barely budged.

How do you stand out from the crowd to win projects and grow your business?

DIFFERENTIATION
You need to differentiate your company and literally be so different you stand out. In a good way. You aren’t going to get there by parroting the one-time, on-budget, construction-meister spiel that everyone has heard a thousand times and that all of your competitors are saying.

Instead, find a way to make your company into the only one your prospects can imagine doing business with.

FOCUS ON THE CUSTOMER
First, you may need to change your perspective. Over the years we have all gotten in the habit of protecting ourselves and our businesses from those who would take advantage. The thing is, most people aren’t really trying to take advantage of you.

Turn it around and ask yourself, “How can I protect the customer?”

Don’t spend your time explaining to clients what it is you do. They already know that, having looked at your website, gotten referrals, and done their homework before contacting you. If they thought you couldn’t do the work, they wouldn’t have called you.

Instead, prepare to tell them how your can help make their project a success. The first question to ask is, “What are your concerns about this project?”

Engage with the customer and focus on client issues. Collaborate, build a partnership and keep the lines of communication open. Help them learn how to evaluate construction contractors outside of the technical. Educate them on determining value.

FIND WAYS TO STAND OUT
There are a variety of ways to stand out, from the creative to the personal.

Start with your proposals. How can those be made more eye-catching? What information should you put on them to help the customer see you as the perfect business for their needs?

Before developing the proposal, think like a customer. Understand buyer behavior and how decisions are made. What are some things you like to know about a new company? The customer is probably wondering the same thing.

Once you know what needs to be answered, you can create construction marketing materialsthat accurately target each of your different prospects. Tailor the information to the various factions within the customer’s company.

Build a relationship with the customer and throughout the industry. Find advocates within your vendors and subcontractor.Network at business organizations and construction associations.  When you hear about an opportunity, do your own homework to identify who the buyer is and what type of information will serve you best.

MEASURE YOUR PERFORMANCE
If you don’t measure performance, you can’t improve it. You won’t know what is not working or what to change.

Measure the company as a whole and identify some key players within it to measure as well. Select people who have an influence on how work is accomplished in their area, find metrics to help you determine their success, and share that with them. Discuss ways to improve.These are the experts in their fields - guide them to excel.

To help you out, here are eight typical concerns that are important to clients.

The ability to manage project cost; for example, minimizing the number of change orders
The ability to maintain a project schedule; can you complete it early or on time?
The quality of the workmanship
Professionalism and the ability to manage, including prompt payments to vendors and subcontractors, and responses to client questions
Proper close-out process, which could mean having no punch list on turnover, offering warranties on the work, providing as-builts and operating manuals, and expediting tax clearance.
Communication of risk and complete documentation; in other words, complete the construction interface on time.
The ability to follow user’s rules, regulations, and requirements regarding safety, jobsite housekeeping, and other general issues.
Your overall customer satisfaction rating and statistics on repeat business.
Measure each of these from past projects and rate them from one to ten, with ten being a brilliant performance. How well did you understand the project? Did you assign the best people for that project?

If your performance is high, there is less risk to the project: less rework, fewer change orders,  fewer injuries, less waste.

IDEAS FOR DIFFERENTIATING YOUR CONSTRUCTION COMPANY
Sometimes you need to go outside your comfort zone, others you just need to broaden your search.

Add new markets
Look into projects that are different from your usual. Find one new project you want to pursue, perhaps in a specialized area of construction.

Try to qualify for new bid lists and become visible in different markets.

Add new customers
There are a couple of ways to find and add new customers. One is to partner with a home improvement store. Another is to start a new business division that meshes with your expertise. Create a renovation company or offer plant maintenance.

Add new risk
Do you have a client with a stalled project? Offer to invest working capital or labor to get it rolling again. Look into depressed areas to find projects to buy and upgrade as a future rental.

Add profit centers
Structure your business to be able to share profits with key employees. Each key person is given an area of responsibility. Hold them accountable for the profits in those areas.

Some examples are creating a service division, a small projects department, or a maintenance company. Have you invested in a lot of equipment? Look into renting it out. Maybe you can offer a crane service or electrical service.

Add overhead targets
Make everyone in your company aware of your fixed business costs and ask them to help reduce the overhead a certain percentage. Give a reward for the suggestions you use.

Ask for field input
Meet periodically with your entire field team and ask for ideas to lower job costs and increase productivity. See if anyone can think of a way to speed up the schedules.

Add more bids
Make a list of 15 to 20 customers you haven’t targeted before, including a few you have been afraid to approach in the past. Ask each one what it would take to earn their project. Ask if there are other services they might need.

Tell your employees that it is part of their job to sell, market, and estimate so you have more people to bring in proposals. Offer a financial incentive for bringing in leads.

Add good people
Evaluate your team and get rid of the low performers. A low performer can undo everything a high performer has gained. Find good people and make them want to stay.

Network with customers, banks, competitors, engineers, and others in the industry to widen your net.

A business must continue to move forward. You need projects in the pipeline to transfer your efforts to when the current project is complete.

Learn what you have done well in the past and what you can do better, measure your performance. Differentiate your company by selling value, taking new risks, and building relationships.


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