Construction companies face some of the most difficult challenges during winter. Unfortunately, the profitability of a construction business is not only seasonal but weather-dependent as well. Besides getting a commercial builder’s risk package, construction firms can employ the following strategies to survive and thrive during the challenging winter months.
Review business performance
The first step is for your clients to review their business’s performance throughout the year. It is generally best to do this during the summer months or when the company isn’t involved in any big projects.
It is generally helpful for company managers to thoroughly assess what they have done correctly over the past few years. No matter how good a business’s action plan is, there is always room for improvement.
Develop a customer base
It might help to realize that many people plan certain home improvement projects during winter. These typically include installing insulation or replacing windows. Therefore, winter may be the ideal time to attract new clients by adding services that they don’t usually offer.
Your clients in the construction industry should think carefully about their customer base and marketing strategies. Marketing efforts should focus on winter-related services such as insulation inspection, adding curtains or blinds, or replacing old furniture.
Showcase remodeling ideas
If your clients have a website, they can remodel or take time to improve their online portfolio. They can even share photos of homes or projects that showcase their company’s capabilities.
Providing potential customers with new remodeling ideas can go a long way in securing new contracts. Building rapport with customers is just as important. This is especially crucial during the winter months, when other companies may not have as many new ideas to offer.
Attract customers with seasonal incentives
It would be beneficial for construction firms to provide potential or existing customers with seasonal incentives. Doing so could increase the chances of attracting new clients and encouraging current ones to continue working with the construction company throughout the rest of the year.
Encourage your clients to include free services whenever possible. Although the cost of services such as insulation inspection may be negligible, they can keep the construction company’s name in their customers’ minds during the winter months.
Offer interior jobs
Construction personnel can keep busy with interior jobs that are less time-sensitive than building projects. These jobs may provide necessary income until work on larger projects picks up again.
Many businesses that offer interior design services find that they can stay busy even during the less productive winter months. This is because many homeowners need to add insulation or replace older fixtures of home features in preparation for the colder weather ahead.
Revisit accounting books
Construction firms need to keep their accounting books up-to-date at all times. Construction clients could even take on extra help if they can afford to hire accountants or bookkeepers. This will help ensure their preparedness for the tax filing period that comes after winter.
Hiring extra help could also free up more time for construction or interior projects. The extra time could also allow them to focus on other important tasks such as marketing.
Attend trade shows
If your clients are looking for ways to boost their construction company’s income over the winter, attending trade shows or industry events could be an effective strategy. Trade shows often provide construction professionals with valuable networking opportunities.
Construction firms can even find potential clients for future construction projects at trade shows. In addition, these events are useful for getting updated news and learning about upcoming industry trends.
Acquire commercial builders’ risk package
Construction firms can maintain profitability during the winter season by getting commercial builder’s risk package. With this type of coverage, they can continue working on commercial building projects even during colder weather.
In addition, construction companies gain the advantage of having insurance on works in progress. Keep in mind that commercial insurance protects buildings against loss or damages that may occur during this period. Just as importantly, risk packages cover materials that could be exposed to harsh conditions.
Conclusion
Most construction firms find that there are fewer renovations and construction work available during the winter months. This is because most people aren’t willing to spend money on home improvements unless they are absolutely necessary.
But a construction company doesn’t necessarily have to shut down during these months. By employing strategies such as developing creative marketing efforts, actively seeking new clients, and taking on extra staff, they can ensure their continued productivity and profitability during these trying times.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
