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Commercial Developers: Why You Need a Business Strategy

Has your business achieved all you hoped it would when you started it? If your answer is yes, then chances are you have a strong business plan in place to use as a guide.

Your business strategy is a big indicator of whether you will succeed in the commercial business. How do you think commercial construction firms and general contractors were able to weather the economic downturns over the last several years? At Leon Williams Contractors, we were spared some of the worst of the recession here in East Tennessee, but that doesn’t mean it was easy, and it would have been a lot harder without a good business plan.

Basically, your business strategy should set you up to be able to work as quickly and efficiently as possible, on the leanest budget, and still do good quality work and bring in a profit. There may be times you have to cut back, but preparing a plan in advance will help you decide where to make cutbacks, and how to avoid cutting out any person or tactics that will ultimately help you grow your business.

Just like in any other business, construction companies and commercial developers can’t afford to just look a few weeks or a few months ahead. In order to survive lean times, we must also think about the long-term future. Such things as good financial management, strong leadership, continued marketing, and employee training are absolutely crucial to ongoing success.

If you don’t already have a written business strategy in place, now is the time to get one together. Start by figuring out the objectives of your company and create a business description. Determine your strengths and weaknesses. Figure out what opportunities you might have in a certain niche or market, and at the same time, figure out any challenges that could threaten your business, whether it’s the economy, obsolete technology, or a shifting demographic. How might you be able to overcome those challenges and keep projects in development? Be willing to innovate and think creatively about how you might reach out to your clients in the face of such threats. Set a budget for marketing and always allot it so you are constantly generating leads and sales.

It’s also important to keep an eye on trends in the construction business. This not only lets you know how to be on the cutting edge right now, but allows you to prepare for what’s still to come as you develop new retail, restaurant, and business spaces.

Make sure your business plan is in writing and that all essential staff have a copy of it. Review it from time to time, to make sure you’re on target with your strategy, or to adjust if needed.

Writing a business strategy isn’t much fun, but with a lot of competition and an ever-fluctuating market, it’s critical to your company’s ability not only to survive, but to thrive.

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