Posted on 27th September 2022

How To Expand Your Construction Business

In theory, expanding a construction business should not be the most difficult job in the world. Since this industry is so profitable, doing a great job will give you the opportunity to find the finances and experience to grow.

Now, there are certain things you need to keep in mind in order to scale your business. Most business owners believe a few extra employees and some extra equipment will do – in fact, there is much more to think about.

Find a new location

There are more reasons that may require an expansion and the lack of work is one of them. It is not necessarily something bad – some people find new locations because the market is saturated.
Some others already dominate the market and they want to grow further.

Finding new places is a challenge. No matter where you go, having a satellite office implies sending your best people over. You need someone with experience to get things going and establish the brand. Consider bridging technology between offices, what tools you need and what local factors may affect you.

Think about money

Construction business loans represent the most common way to expand. Whether you expand to a different area or you do it locally, you will need more staff, more equipment and tools. All these things cost money. Many business owners choose to keep saving and expand naturally, without going into debt.

However, if you have to choose between a small expansion with your savings and a massive one with a loan, go for the second option. You go big and results will be just as encouraging – assuming
you are doing everything by the book, of course. Even if you run a small business, some extra equipment and a couple of employees will still cost a lot.

Think about profits

Expansion needs to be there with a reason. There is no point to expand just for the sake of it – unfortunately, many business owners do it wrongly. Just like when you started your business, you will need another business plan for the actual expansion.

Now, the idea is fairly simple to understand. Your primary goal is to earn more business. But at the same time, more business must be profitable. Do not expect any major profits as soon as you expand – less likely to happen. But you need a plan for long term success.

Taking new work must bring in profits overtime. Otherwise, it makes no sense to make more jobs and work much more – plus, think about the stress. You do it to increase the profits, so that should be your primary goal.

Network for extra work

You have already managed to establish a relatively solid business if you are thinking to expand, meaning you no longer need certifications and local customers. However, there are certain things that apply whenever you want to grow – apart from the financial part.

You need to keep networking. Network until you actually need to expand because you find yourself unable to take all the projects you are asked about. In other words, expansion should not come out of nowhere, but as a necessity. It will make everything so much easier.

Keep networking as you grow your business. Get into the local chapters of trade associations. Networking will increase brand awareness in other areas, but it will also generate more leads. You need to be active and also give back to your community.

Spread the word

No matter how many directories you sign up for, the truth is word of mouth is still the most important way to advertise. Put yourself into your clients’ shoes. You know that poor quality work will be costly in the long run – plus, it will be extremely stressful.

People will see their neighbours doing their drive or renovating their bathroom and ask who is doing it because they have a similar project. They want to see previous work and they have the evidence right there.

With these thoughts in mind, encourage your customers to tell others about your work. Some businesses will even run raffles and award people leaving them great reviews over social media websites or directories. It is worth the indirect advertising.

Be proactive

Unless you are overwhelmed with work and you have to refuse projects because of the lack of time – the ideal case for expansion, you will need to be proactive. You cannot just settle. Just because you expand to a new place or buy new equipment, it does not mean that business will keep coming out of nowhere.

You need to keep being proactive and find new opportunities – sometimes, you need to do it to retain business. When you expand, you have to do it in order to gain more business. Constantly reach
out to architects, councils, contractors and owners to find potential projects.


People make hundreds of decisions on a daily basis. Many of these decisions are inconsequential. However, things change in terms of business applications. To find more business, you need some
solid and well planned decisions that will provide an impact overtime.

You need to plan for long term success. Avoid pressure and never make impulsive decisions.