7 Mistakes Every New Construction Company Must Avoid
Starting a new construction company has more than its share of challenges. Granted, mistakes are bound to be made. However, there are some mistakes that are definitely preventable. Let’s take a look at seven (7) mistakes every new construction company must avoid.
- Hanging onto an idea that doesn’t fill the market need.
Sometimes when you come up with an idea, you’re ready to run with it.
But when you implement it, the market doesn’t respond. It might be tempting to question the market, but if you allow that to go on too long, you could be in trouble.
It’s usually wiser to find out what the need is first, and then craft an idea.
Here is a true statement: “A good plan today is better than a perfect plan tomorrow.”
A good plan today will at least allow you to get going and take action. Plus, it’s flexible – as plans should be – because you may need to adjust course. A perfect plan is too rigid, and adjusting course will be more difficult.
Imagine going out to buy some “must-have” tools for that job coming up next week, only to find that you don’t have enough to meet your lease payment on your warehouse.
When starting out, figure out what you’re going to spend each month and how that money will be spent, and stick to it.
- Ignoring your market
Your customers’ needs change at times, so once in a while you need to reach out to them. Find out what those needs are.
Put out a survey and ask them to tell you honestly if there is something they’re looking for that they need or want – like an improvement in a product or service, or an entirely different one altogether. Then provide it.
- Trying to have everything “just so”
If you are spending time on activities that you have actually delegated to other personnel, when will you have time to do the things you have committed yourself to do?
Every activity, including your own, has an impact on your business. If an activity is not essential to your core product or service, then it’s not essential at all.
- Listening to the wrong people
When you’re starting out in a new construction company, one of the biggest mistakes you can make is take advice from people who know little or nothing about your industry.
Turn to people who are not just knowledgeable in the construction business, but also successful. Success breeds success.
- Buying a new work vehicle
This is somewhat close to overspending. In most cases, a new construction company owner cannot afford to buy a brand new work vehicle, let alone a fleet. Starting out, it may be wise to consider renting a work truck from a company like Flex Fleet Rental.
It’s hard enough to get a business going, especially during the first year. Make it easier on yourself by avoiding these 7 mistakes.