3 reasons to take Construction Business Loan
How Your Construction Business Can Benefit From A Loan
The inconsistencies of tender seasons, invoice payments and unexpected costs are oftentimes the downfall of construction businesses. Especially during the start-up years, it can be tricky to guarantee enough cash flow and resources to successfully complete every project that comes your way. Securing a construction business loan can ensure you have the right resources to win projects, the cash flow to hire the right staff, and the bandwidth to actively grow your business consistently year-over-year. It will allow you to spend less time stressing over budgets and instead focus more on developing your reputation within the community. It can also give you breathing room to include marketing into your business plan which can showcase your completed projects, happy customer reviews, and establish expertise within your industry niche.
While there are dozens of reasons why companies benefit from a small business loan, here are the top three reasons why residential and commercial construction businesses often need capital. Would extra cash flow and resources help you with these essentials too?
Top 3 reasons why your construction business needs capital
Construction Business Financing
Expenses can add up quickly when running a small business and completing projects. While it might be tempting to cut corners and save on costs – there’s a difference between making a savvy business decision and compromising on quality to save a buck. As part of your construction loan, project bidding and expense projections, consider what you might be jeopardising if you buy sub-par equipment or use poor quality material. Also take into consideration the wasted time and frustration that can come from having outdated accounting software or glitchy computers; your invoicing system is vital to bringing in (and keeping track of) cash flow as well as managing contractor wages.
Developing Online Marketing Strategies & Business Promotions
You can physically only be in one place at one time, but you can be in front of hundreds of the right people online 24/7. Combining your offline network – such as existing connections and previous clients – with online marketing can quickly increase your audience. Don’t underestimate the power of word of mouth referrals and testimonials/reviews on your Google My Business page either. Taking traditional marketing like sharing testimonials and putting them online can help establish your credibility without needing the valuable time it would take to share them with each potential project manager individually.
Staff Training, Recruitment & Development
Efficient business owners know that it costs less to keep a good employee than to find one. That’s why it’s important to find the best people right from the start – which means offering competitive wages and employee perks like career development. Saving money on cheap labour can end up costing you in time spent supervising, redoing work, and constantly having turnover because they aren’t motivated to stay. It also is putting your business’ reputation on the line each time a job isn’t satisfactorily completed.
When you do find the right people, make sure they know you appreciate them. Training and developing/upskilling your staff will help solidify good morale and loyalty within your team.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at February 2020. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.