Successful concrete businesses must be able to sustain themselves through industry lows in addition to keeping up with periods of high activity. The best way to make sure a concrete business will survive market downturns is to build success into the business model.
Read on to find out about five strategies for making a concrete business a success.
1. Good Corporate Management
Running any kind of successful business, including a concrete business, requires administrative diligence. Corporate managers must keep accurate accounting records, ensure that taxes get paid on time no matter how much or how little money the company made, and keep business licenses up to date.
On a more day-to-day level, managers also need to prevent unnecessary material losses, which can quickly become costly to concrete businesses that use ready-pour products. Investing in concrete producer software can help.
2. Effective Marketing Strategies
During the initial phases of establishing a concrete business, marketing is one of the most critical factors determining whether it will be a success. Effective marketing strategies for up-and-coming concrete businesses include a mix of digital and in-person advertising.
Place branded wraps on the company’s vehicles, create a website that showcases prior work, and make sure the brand has a solid online presence by maintaining social media pages and Google My Business listings. During those initial stages of development, concrete contractors usually work with all kinds of different clients, so leave no stone unturned when it comes to marketing.
3. Do Some Networking
Networking is just as important for local companies as traditional marketing campaigns. Make it known that the company is looking for new business and is willing to work with all kinds of clients by asking customers to leave reviews, or request referrals to help convince property owners who are hesitant about working with a new business.
Partnering with experts in other relevant industries can also be helpful as the company begins to grow. While working as a subcontractor typically pays less, it also opens the door to bigger projects. Plus, subcontractors don’t have to worry about marketing overhead.
4. Find a Niche
Newly opened concrete businesses can benefit significantly from finding a way to differentiate themselves from their competition. Although it’s wise to offer a variety of concrete services, finding a niche that requires specialized equipment and skills is a perfect way to stand out from the crowd.
Think, for example, of concrete pumping. It requires a specialized pump to move liquid concrete into challenging positions, so most contractors don’t offer this service. Investing in the equipment will allow newcomers to the concrete industry to establish a name for themselves working on high-rise buildings with concrete floors, which also helps to develop a positive brand image.
5. Learn How to Build Custom Bids
Bidding on contracts requires more finesse than some newcomers to the field might think. Pricing small jobs is relatively easy, but bidding on large projects such as roadway pouring is a different story.
Concrete contractors that can build custom bids based on available personnel and equipment and the company’s business model will find it much easier to land municipal projects. Municipal projects often continue even during serious industry downturns, so they can be incredibly valuable.
Start Making Changes Now
Don’t wait until a market downturn. Instead, start implementing some of the strategies described above now so the company will be prepared for anything the future might hold.