Having gone through one of the most difficult periods, the construction business is back in the saddle. What’s more, the residential building construction industry was the fastest growing industry for small businesses recently (source: Sageworks). This is mainly a consequence of significant rise in housing demand.

Also, another five industries among the top 10 fastest growing ones among small businesses are closely related to the construction industry, including professionals such as contractors, realtors and architects. With the expected growth and development in the field of commercial construction, we’ll probably notice increased demand for business office space and retail buildings.

For those thinking about entering the world of the construction industry, these are all encouraging signs. For those already there, the future holds some great challenges imposed by the more demanding tasks requested by clients and by stronger competition than ever. Let’s look at some aspects that need your special attention in order to run the organization as smoothly and efficiently as possible.

Expenditure

You need to examine and re-evaluate your expenditure carefully, particularly your fixed costs. Those are the things you have to pay for even if you have no job to do and no income to make, such as rent, utilities and salaries. Having a detailed understanding of your overhead is essential for you as a manager/owner, since it needs to be taken into account when bidding on jobs and making profit.

Flexibility

Clients tend to change orders from time to time, which means you’re asked to do something that’s not within the scope of the original contract. If not analyzed and answered properly, such requests can endanger the profitability of the whole project at the end. However, if dealt with flexibly and shrewdly, they are an excellent opportunity to make extra profit, since you already have a contract and don’t have to compete with anyone. If you manage and complete change orders and turn the additional work into billable time, you’ll reap the rewards for being flexible and well-organized.

Accounting

This is an area where you definitely need professional assistance from an expert, who’ll be able to advise you on the best accounting software program and the way you should set up your accounts and generate reports. This is also an aspect of your job where an early investment will pay off in the long run, since you’ll be saving time and you’ll be able to manage cash flow more efficiently. Also, you might need advice from experts on various other matters, such as professional asset remarketing, choosing the right benefits for employees, etc.

Professional development

Like in all other types of business, one of the key issues and possibly your unique selling proposition is quality staff. If your system encourages growth, promotion and rewards, your employees are much more likely to be loyal, meaning you won’t need to spend unnecessary time dealing with staff turnover. This is particularly important for small businesses, even more so if the person leaving your company was in a strategic position. You waste both time and resources looking for a replacement, which is an exhausting task.

Furthermore, if your employees have a chance to get training, embrace responsibilities and be rewarded accordingly, your organization will operate more efficiently.

Another tip is to invest some time initially to write down the procedures to be implemented. That will streamline unnecessary questions, minimize errors and prevent redundant costs and damage on the site.

Being in this business also means you need to adhere strictly to many state regulations related to chemicals used and safety at work. Your procedures are one measure of compliance, but they aren’t carved in stone. Feel free to revisit and redraft them to accommodate any changes taking place in the meantime.