What if I told you there is a shortcut to outgrow your construction business from $0 to millions of dollars in a short time? Yes, there is. And that’s a successful home builder business plan.
Every entrepreneur wants to write a business plan in general, and they need some financial investment to do so. However, construction is the only industry that doesn’t need any specific financial investment.
The interesting thing is that it doesn’t need any kind of specific business plan.
I visited some of my friends last week who are in the construction field. We discussed how to grow a construction business. We started trying out many ways, from estimating, takeoff, and negotiating. We tried it all.
Finally, we agreed on some points that would help you grow your construction plan.
And that is your home builder business plan. Let’s start discussing those points.
5 Pillars Of Home Builder Business Plan
- Develop a system to get a lot of clients and projects
- Develop an estimating team that can help you bid more
- Develop a follow-up system for negotiation and sales close-up
- Set up a project management team for smooth operations
- Build your field team to perform more efficiently
Let’s delve deep into these five steps of a successful home builder business plan more thoroughly:
1. Determine Your Lead Generation Strategy
How are you getting the leads for your jobs? Before starting your job on the construction site and estimating the materials, you need to capture the leads. But how are you going to gain the leads? So if you want to get some leads, being a home builder business plan is necessary.
The first step in this regard is to educate yourself with a profound knowledge of your field. The second step is to sign up for multiple online lead-generation services like Bluebook and iSqft. This will help you to attract more clients in a guaranteed manner.
If you want more satisfaction in your efforts to gain more leads, here’s one more strategy for you. Here’s the third and the most crucial step.
This is to build a Select 12 Cluster (S12C). An S12C is a list of your most potential 12 clients that you have handpicked to streamline your construction business. You can use Google to create this list. Once you have this list, you can create personalized emails for them, call them, or visit them personally.
But here’s my recommendation. You don’t need to visit them personally to get the leads. You simply need to convey to them the message that you exist. Not any other contractor but you. Stand out among other contractors by giving them the best value for their money and giving them the best advice for their business. Building good and professional relationships with your potential clients goes a long way toward streamlining your construction business.
The main idea of S12C is to use them as your horse blinders and focus on developing relationships with them so they can use you as their go-to contractor whenever there is a construction plan involved.
So, just to summarize:
- Invest in lead-generation sources
- Build a S12C strategy
Good News! If you are from Texas, California or NYC, we are offering 35% off. Get more details at:
Construction Cost Estimating Services NYC
Texas Construction Estimating Services
Construction Estimating Services California
2. Establish Your Bidding and Estimating Process
The second step after getting the leads is to establish a process that speeds up the process of bidding and estimating so you can focus more on selling your job.
There are three options you can think about:
- Hire an in-house estimator to work full-time.
- Hire an estimating service to handle each project.
- Do the whole thing yourself.
If you choose to do it yourself, it’s going to be tough as hell. You will be left with no time to grow your construction business when you are so immersed in it all day. Suppose you spend a considerable amount of time creating an estimate for your client only to find out that they hired you for better prices (they do this in actuality).
Successful contractors are those who know how to build a team, delegate tasks, and focus on selling the job themselves. In short, if you are working as a one-person team, ensure to delegate the tasks as soon as possible in order to focus on bidding and winning more projects. This is the secret to the long-term success of any construction business.
To save more money and time, you can hire a construction estimating company to get an accurate construction estimate. All you need is to upload the project drawings and get an estimate for your construction project within 12-24 hours. This will help you to concentrate on other tasks and save the money of hiring another employee.
3. Create a Sales Team that Closes Jobs
After you have the leads and the bidding process working properly, it’s time to invest in selling your job. There are many strategies to close the job, but all of them are about investing in the client. Investing in the client requires passion, patience, and the right time to approach them.
You can invest in clients by giving them the services, waiting patiently, and asking them at the right time about it. An automatic follow-up or a manual follow-up can achieve this.
An automatic follow-up involves the use of a Customer Relations Manager (CRM) to automatically connect with specific people at a specific time. This system creates automatic mail and sends it to a mass of people, scheduled at a specific time.
Meanwhile, a manual follow-up allows you to select that specific mass of people and write specific emails to them by yourself. You can do it any time of your choice. That’s why it is called a manual follow-up.
Before you bid on a project, meet that person in person and check if he is someone you can work with. Also, let them know what you are going to serve them with.
Also Read: 10 Best Places To Advertise Construction Business
4. Set Up Project Management Systems
At this point, when you have the construction leads and are dedicated to your time to sell jobs, it’s a matter of a little time. The strain starts when you suddenly have a bundle of projects coming in. This is the real test for home builders and contractors about how to manage subcontractors.
As I mentioned earlier, the owner of any construction company or home-building project should always concentrate on leading and selling the jobs. You don’t need to spend all your time on the site while straining over the tasks. This is not going to win you more projects.
Therefore, whenever you get the project, delegate the tasks as soon as possible unless you really love to be on the site. However, you need a few pieces of software in order to streamline the project.
Bid Management Software
This is quick and easy to employ, rather than asking people to remember the due dates of the project. If you want to utilize it, look at SmartBid and AccuBid.
Project Management Software
This software helps to keep all the employees involved in a home building or construction project on the same page. Some exceptional project management software are Procore, CoConstruct, and BuilderTrend.
Accounting Software
This software helps to keep track of all the financial expenses of the home-building project. Some famous software in this category are QuickBooks, ZipBooks, and Stripe.
Estimating Software
This software helps you to create an accurate and precise cost estimate for your home-building project while considering all the costs of materials, labor, and overheads.
This might be helpful: 22 Proven Strategies for Marketing a Construction Business
5. Find a Field Operation Team
When you have set up the project management systems, it’s time to arrange a field operation team for your home-building project. Keep in mind that it’s the team and collective effort that can build or destroy any project. Don’t forget that this team is being set up for the field and not for the office.
As per your requirements, you need to have a look at how many people you require and how to select the right people for your project.
General Superintendent
This is the primary field operation manager. They look after all the projects that the company is currently working on and track their progress.
Project Superintendent
This is the main operation manager of single projects. They pay attention to single jobs to ensure that the project is well-aligned and navigated to success.
Foreman
This is the further subdivision of the project superintendent. You can call them the supervisors on layperson terms.
Workers
They are the true fuel of any home-building project. These are responsible for the actual work on the field. Hire them, train them, and put them to work.
Conclusion
Here’s how to create a home builder business plan for a successful home-building company. The construction industry can be challenging, but having a solid plan and executing it well can make things easier. We hope you found this information helpful and valuable.
