- Research the market and check the competition to understand what makes your service or product unique.
- Network with industry professionals, build relationships and establish yourself as an expert in the field.
- Hire experienced employees that have passed government-required tests.
- Finance strategically with accurate records of income and expenses, and consider a loan if needed.
- Understand VAT regulations associated with construction projects in the UK when calculating tax liabilities.
The construction output level in the United Kingdom for November 2022 was 3.1 per cent higher than the pre-pandemic level in February 2020. However, new work dropped by 3.4 per cent, equaling a total of £327 million. On the other hand, repair and maintenance rose 15.5 per cent, amounting to an impressive £778 million in comparison to that same month two years prior.
Despite this, construction output rose by 0.3 per cent over three months. A surge of 1.3 per cent in new work was the reason for this increase. Now is a great time to start for entrepreneurs looking to break into this market. But how do you expand your construction business in an already-crowded market? Here are some tips for growing your construction business in the UK.
Research Your Market
Before you can start expanding your business, you need to understand what it is that makes your product or service unique. Knowing exactly who you’re targeting and why can help you create effective marketing campaigns that resonate with potential customers.
Check the Competition
Researching your competition will also give you an idea of what they’re doing right—and wrong—so that you can stand out from the crowd and offer something no one else does. Additionally, understanding your target audience’s needs and wants will ensure that you create products and services that meet those demands.
Knowing the market can also help you identify potential opportunities or threats to your business so that you can be prepared for whatever comes your way. Once you’ve done this research, you’ll have a much better chance of success as you expand your business.
Network with Industry Professionals
Networking is critical when it comes to expanding any business, especially so in the construction industry. The more contacts you have within the industry, the more opportunities will come your way.
Try attending industry events and joining relevant discussion boards and forums. You can also reach out to people via email or LinkedIn messages with short introductions about who you are and what services you offer. Building relationships is essential even if you don’t need them for immediate business purposes. You may never know who will refer you to a potential client or suggest your services in the future.
Expert in the Field
Developing long-term relationships with clients and industry professionals can also be beneficial when it comes to securing larger projects and contracts. Over time, you can establish yourself as an expert in your field and be seen as a reliable source of construction services. As you network with industry professionals, share any noteworthy accomplishments or recent projects you have completed so that they can spread the word.
You should also work with experienced employees. Many industry professionals have years of experience under their belts. They can offer valuable insights into the construction industry that you may not be aware of. But when it’s time to hire employees, you should make sure they have all the necessary papers from the government. You should ensure potential employees book a reliable CITB test if they still need to pass the test. Taking and passing the test is essential to know that the employees can work safely at a construction site.
Overall, networking is essential to success in the construction industry. With strong relationships come more opportunities, which can help to expand your business in the long run. Take advantage of your connections and reach out to potential contacts when possible. Keep up-to-date on industry news, events and trends to stay ahead of the competition.
Be Strategic With Your Finances
You’ll need a solid financial strategy if you want to grow your construction business in the UK. Make sure to keep accurate records of all expenses and income and have a clear budget for marketing activities such as advertising or website development.
Line of Credit
Consider taking out a loan or line of credit if needed. Make sure it’s a credit solution fit for purpose and won’t leave you weighed down by debt further down. Additionally, you can explore angel investing or venture capital options if extra funding is needed.
When it comes to taxes, ensure you understand the VAT rules and regulations associated with construction projects in the UK. Calculate your tax liabilities before work begins so that you are not facing any nasty surprises further down the line. Set aside an appropriate percentage of your income to cover taxes, and look into claiming any tax-deductible expenses.
Expanding a construction business in the UK requires careful planning and preparation. Following these steps can help ensure success when growing any construction business in the UK!