The economy has caused many contracting companies to do some serious reorganization with their modus operandi. Serious times cause serious changes and the depressed economy has caused many changes in the way that contracting companies conduct their business.
Breaking a construction company down to the essential elements and you will find three (3) basic areas that are needed. The basic functions for a contracting business are composed of three components and the success or failure of the company depends upon how efficient each component is. These components are:
2. Management or insuring the work is done correctly and on time.
3. Marketing or public relations.
Most successful contracting business have many other essential components than I have listed, however, for simplicity, let us focus on these three. Some people will say that the bidding and marketing tasks are part of the same function but in today’s world marketing has taken on a whole new meaning and it’s importance has increased immensely for the contracting business.
Bidding is important because the company has to bid every project it can find. In a reasonable market you will only be successful on a small percentage of the work that you bid and as competitive as the market place has gotten you are probably not as successful as you would like to be.
The managerial component of the contracting company is very complex and we will later discuss the varied amount of tasks and why you need to find ways to implement systems in order to control and grow your company in a manageable fashion.
The marketing component is extremely important in and your success or failure will depend upon how effective you are. You need to become extraordinary in this department!
Let the world know you are in business and you are amongst the top in your industry. Get involved with every trade organization and business association in your area. Get to know the market place along with the purchasing agents that have any influence in your area of expertise.
Install and promote a well-developed website. This alone says that you are a serious contender in your profession. It is my belief that any construction company that does not have a good website and make use of the internet will soon fall by the way side. Make good use of all the technology available.
The way your marketing people present themselves will have a lasting effect on your company. Remember there is only one first impression so make yours memorable!