One of the biggest challenges to running a construction business is figuring out how to expand. To help with this problem, we offer seven proven ways to grow Texas construction businesses quickly and efficiently.
Take a look at our breakdown of the best ways to land your dream project as a Texas Construction Business.
1. Stay on Top of Your Finances
Before you take on a new job, create a budget for all the possible expenses that will come up. Make sure you have enough money coming in to cover everything. Also, think about outsourcing the financial work by hiring an accountant to track your cash flow to give you a little breathing room.
2. Try Invoice Factoring
If you have ever waited around for a client to pay an invoice before starting a new job, you know how frustrating it can be. Consider invoice factoring. Invoice factoring gives you money for unpaid invoices up-front, so you aren’t stuck waiting for your clients to pay before you can expand your business. You can pick which invoices you want to factor each month and get 70% to 80% of the cash right away.
3. Get Help With Buying Materials
A big construction job needs a lot of construction materials, but this shouldn’t hold you back. When you need to buy stuff, but don’t have the up-front funds, you can turn to materials purchasing. We purchase the job supplies for you, and you pick them up. You pay us once you get paid by your client. It’s fast, easy, and a great way to grow your Texas construction business.
4. Turn to Equipment Leasing
You’re tired of paying pricey rental fees on that excavator, but you don’t have the funds to buy it outright. Did you know you can lease new equipment?
The process is similar to leasing a new car — you pick the machinery and then pay a monthly fee for the lease. At the end of the contract, you can buy the excavator or return it. It couldn’t be easier.
5. Get an Asset-Based Loan
Another option when you need more cash on hand is to get a loan. You can receive a loan based on the assets you own, like real estate, inventory, or equipment. This quick money helps grow Texas construction companies with bigger and better jobs.
The stuff you own acts as collateral for the loan, though, so make sure you only take out an amount you can comfortably pay back.
6. Improve Your Bids
Texas is a big state, and since you’re often competing with other contractors for a job, you want to put your best foot forward. Try using a construction bidding software to streamline the process and stay up to date with local RFP listings. Some well-rated software choices include:
- HCSS HeavyBid – best for infrastructure construction
- B2W Software – best for heavy construction
- McCormick Estimating Software – best for electrical, plumbing, or mechanical trades
- Esticom Software – best for cloud-based service
Services like these can help you make more accurate estimates and create bids in less time. Also, they’re user-friendly, so there’s no need to worry if you don’t have a head for technology.
7. Always Keep Clients First
No matter how big your company gets, never forget what made it successful in the beginning — your excellent service to clients. Don’t cut corners for the sake of growth, or you may find yourself making mistakes that cost you the job. Also, keep an eye on online reviews and improve any areas of weakness.
The best way to grow your business is to acknowledge when it’s time to ask for help. It may be financial assistance through an asset-based loan or through invoice factoring, or technical help creating bids. Whatever aid you need, don’t be afraid to seek it out; your business will likely grow because of it.