There’s a lot of competition in the concrete world, with over 50,000 different concrete businesses operating in the U.S. alone. Future business owners shouldn’t let that get them down, though.
There are plenty of ways for new concrete businesses to create space for themselves in today’s markets. It just takes some work to get started. Read on to find out about the five elements of creating and running a successful concrete business and implement these best practices as the company gets off the ground.
- Plan to Take Advantage of Modern Technology
Modern technology has changed how things work in just about every industry, and the construction industry is no exception. It’s a mistake to assume that adopting modern tech solutions can wait until the company has already gotten off the ground. Download a material producers app now and plan to take advantage of digital marketing solutions, mobile credit card readers, and other advancements in technology from the beginning.
- Create an Effective Business Plan
It’s equally misguided to assume that starting a concrete business is a simple matter of getting out there, attracting new clients, and performing high-quality work. All successful businesses, regardless of their size or how long they’ve been around, rely on effective business plans that cover strategies and operations.
Keep in mind that the plan won’t just serve as a reference point for different contractors and teams, but also for lenders and investors. It should include as much information as possible about how the business will be run and how it will carve out a niche for itself. When in doubt about how to get started, try downloading a free template and customizing it to fit the industry’s needs.
- Start Small
While established businesses often focus on expanding their service provisions to draw in new customers, newcomers to the industry should always start small. It costs a lot of money to build up the equipment and employee base required to perform all varieties of concrete work, so try to focus on one specific area at first. Once the company gets off the ground, there will be plenty of time to expand its list of potential services based on the equipment and staff that are already available.
- Bid Effectively
To get jobs as a concrete contractor, new business owners will need to learn how to bid effectively. Bidding too high will drive away potential clients while bidding too low will cut into the growing company’s profit margins. Take the time to come up with solid material and labor cost estimates and take advantage of specialized estimation software to make sure they’re spot-on. It can also help to research what competitors have made for similar jobs in the past.
- Focus on Compliance
There are few things that can destroy the reputation of a new concrete construction business faster than compliance violations and any resulting high-profile accidents. Get licensed and insured before working on a single job, and make sure to do plenty of research in advance to avoid violating relevant OSHA requirements and other rules.
Start Building
Once future concrete business owners have established effective business plans, downloaded all the right apps, and learned what there is to know about safety, compliance, and industry standards, it’s time for them to start building. Take whatever projects are available and stay focused on the future, building a consistent client base along the way.
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