Why Do You Need a Growth Plan?
When you build something, you need to have a building plan. After all, if you don’t have a building plan, you don’t know what you are building, never mind the most efficient and effective ways to build it. If you insist on proceeding with the building in spite of not having a building plan, you can expect terrible results that will have exceeded both its budget and its schedule, assuming that you are fortunate enough to complete it in the first place.
As it is with buildings, so it is with businesses. If you are interested in growing your construction business, you need to make sure that you have a good construction business growth strategy, which has been formulated using your experiences as well as the information that you have collected about your chosen industry. This and only this is the reliable way of ensuring that your construction business will not just survive but thrive in a competitive field.
Factors of a Successful Growth Plan
Here are some of the most important factors that should be considered when coming up with a construction business growth strategy:
- All businesses exist to make a profit. However, the concept of profitability is the ultimate goal in the context of a construction business growth strategy, which is meant to provide a construction business with a road map to success. Instead, a construction business growth strategy should have business objectives that serve the construction business’ reason to exist, while remaining realizable within a reasonable period of time and measurable using concrete factors. For example, a construction business can choose to increase its share of a chosen market, but that will not be particularly helpful unless it chooses a specific percentage for its market share as well. By making sure to fulfill all of the mentioned factors, a construction business can make sure that it will be held accountable, which is important for ensuring maximum effort towards meeting its own business objectives.
- Each business objective should be broken down into a number of steps regarding how the construction business plans to meet it. For example, if a construction business is planning to increase its market share by a specific percentage, steps can include but are not limited to increasing its marketing, creating incentives for repeat clients, and changing its customer service policies for increased appeal to its clients. This way, the construction business knows where it wants to go, as well as how it will get there.
- Of course, these steps will be meaningless unless the construction business knows enough about its chosen industry as well as its chosen market to come up with the right solutions to the right problems, which is where market research comes in. In short, a construction business can learn more about its chosen industry as well as its chosen market by asking its clients, examining its own experiences, studying the growth strategies of their most successful competitors, and even hiring market research companies to conduct market research regarding specific questions of interest. Without knowing their chosen industry as well as their chosen market, a construction business will not know how they can grow, as well as where they should focus their efforts for the greatest amount of growth.
- For that matter, a construction business cannot succeed unless they know their part of the market as well as the options available to them. After all, different construction businesses focus on different construction projects, meaning that each construction business is not competing with all of the construction businesses out there, but rather the select number of construction businesses competing for the same construction projects. To ensure the best results, a construction business needs to choose the segment of the construction market that is best-suited to their capabilities, which will also determine the ideal way of growing their business, as well as the extent of their potential growth.
- Finally, management involves coming up with a plan, implementing that plan, monitoring the implementation, and then making changes as needed to ensure better results. This means that a construction business growth strategy will be useless unless the construction business pays attention to its progress towards meeting the business objectives laid out in them, which is why the business objectives needed to be based on concrete factors. By providing oversight, the management of construction businesses can ensure that potential problems are caught and corrected in time while also making sure that the plan is continuously adjusted to account for both unknown and unexpected circumstances.
Construction businesses need to remember that no plan is perfect. However, this does not mean that growth strategy plans are useless, rather that construction businesses must maintain a careful balance between too much planning, or not enough planning. Over-planning a growth strategy may result in unattainable goals, which can lead to a failed strategy overall if the construction business determines their growth was not great enough. On the other hand, a lack of planning can result in the business struggling to determine if they have actually grown and what were the reasons for this growth. While both under and over planning can have their drawbacks, it is recommended to find a balance in between and put the construction business on the right path to success.