436: The Advantages Of Healthy Competition For Your Contracting Business


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By Randal DeHart and Randal DeHart | Construction Accountant |PMP | QPA. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
This Podcast Is Episode Number 436, And It's About The Advantages Of Healthy Competition For Your Contracting Business Starting a construction business means you'll compete with other companies that already exist. It's a good thing if you have a competition to go up against. Competition pushes you to be innovative. It also means there's an established community for your services. What about if you're considered a veteran at this stage? Understand that you cannot outwork your competition forever because you will grow old and tired in time, and there will always be someone else who is newer, younger and works cheaper than you can. Being aware and mindful of what others in your industry have developed and provided leads to a newfound motivation and belief in making an impactful difference, whether within your company or your community.

The key to benefitting from the competition is knowing how to take on competitors, so your company earns a profit effectively. Here are some ways to get ahead of your competition and grow your construction business.

1. Respond to client needs

Large businesses have weaknesses. The bigger they are, the less personalized and responsive their service is. They market themselves to a broader audience and, because their overhead is higher, they have to bring in more clients to cover their costs.

In this respect, your size is an advantage. Fewer customers mean more personal service. That opportunity for relationship building will entice customers who are looking for extra attention.

Examine what people love about your competitors but also what frustrates them. Build your business to address those gaps. If you find that something isn't working with your customers early on, don't be afraid to shift. Be innovative in responding to market changes and client demands. You'll have an easier time making that change early than once you're more fully established.

2. Show what makes you different

Your business offers something different from other contractors in the area. If you didn't have something unique, you wouldn't be starting a business. You're different from what's already out there—and that's what makes you attractive to your target market.

Do you have special knowledge or expertise in your industry? Are you offering a service that has a new component, such as a technological advantage? Does your product fill an existing gap in the market?

Whatever it is that makes you different, market that. Make sure people know why and how you're unique.

3. Take advantage of existing knowledge

If there are already established competitors in your industry, that's a good thing. It means someone has already done vital research on your customers' needs and pain points.

You can learn from the knowledge that already exists by studying your competition. Look at their website, social media, and review sites. Take note of how they sell their goods or services. Are they using tactics relevant for you? Are their strategies effective? Are there weaknesses in their marketing or offerings that you can address?

Rather than spending your money doing your research, learn from the construction businesses that have gone before you.

4. Focus on your audience

There's room enough in most industries for competition. While it's a good idea to know who you're up against, ultimately, your clients are your priority. Focus your efforts on providing goods and services meaningful to them, address their pain points, and improve their lives. Market yourself to make those aspects clear. Show them why you're the ideal company to hire for their project.

Final thoughts

Look into your industry and the successful contractors around you not to lose sight of your vision for your construction company but as an inspiration to guide your systems and processes.

Using these four strategies can effectively take on the competition and help your construction business be successful. Take it one step further by hiring an expert to help you with the things you are not an expert of - for instance, hiring a Website/Social Media Manager to take care of your online presence, as this is your digital office.

Of course, a financial advisor or a construction accountant who has been where you want to go and can guide you will benefit your construction business. We want to be that person for you. Optimize your time and skills by doing what you love and do best.

Fill out the form on the right, call me at 206-361-3950 or 1-800-361-1770, or send me an email at sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation.

About The Author:

Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

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