Okay, so we have considered all the requirements for starting a construction company. We also took it further by providing an in-depth sample construction company business plan template. In this article, we will be analyzing and drafting a sample construction company marketing plan backed up by actionable guerrilla marketing ideas for construction companies. So put on your marketing hat and let’s proceed.
Presently, Shannon Berg Construction Company has been fully incorporated and licensed to operate in the united states of America.
We have secured all the needed permits that will enable us successfully bid and execute big – time construction contracts. This is especially from the Federal government of the United States of America and of course corporations and governments from all across the world
Our Head Office is located in Grand Rapids, Michigan, but we have plans to open our branches in one or two countries in all the continents of the world and we intend achieving this within the first 10 years of operations.
Currently, we have successfully equipped our head office; we have prepared all the necessary business / contract documents and have employed key employees that will be the pioneer staff of our construction company.
As a matter of fact, everyone under our employment is currently undergoing training so as to fit in perfectly into the roles they are to occupy and also to fit into the company’s overall vision. We are set to official open our doors to the generally public on the 1 st of February.
Shannon Berg Construction Company is a construction company that is set to undertake both small construction projects and massive construction projects for governments, private sectors and for individuals which is why we do not intend to place limitations of the scope of the projects we handle and what we do.
We know that if we are good at what we do, it will make it easier for our brand to grow beyond Grand Rapids, Michigan to other parts of the United States of America and the rest of the world. Our business offering are listed below;
Our vision is to build a first class construction company that will have active presence in North America, South America, Africa and Asia.
At Shannon Berg Construction Company, our mission and values are to help governments, the private sector and individuals in the United States of America and throughout the world realize their dreams of building a world class structure that can compete on a global stage with the best in the construction industry.
Our Market Goals
Our market goal is geared towards helping us to consistently achieve sales growth, regularly acquire new customers, do all we can to retain our old customers and of course create brand awareness for our construction company.
Our market goals are driven by our mission and values which is to help governments, the private sector and individuals in the United States of America and throughout the world realize their dreams of building a world class structure that can compete on a global stage, with the best in the construction industry.
We want to build a first class construction company that will have active presence in North America, South America, Africa and Asia. Here are the market goals we set as a construction company that is ready to compete with other leading construction company in the United States of America
What we aim to achieve from our market efforts are as follows:
The construction business is one of the businesses that cannot be over hyped beyond what you can deliver. As a matter of fact, you can spend loads of money marketing your construction business, but if you don’t have standard construction jobs to show for it, you can hardly attract big – time clients. So what we intend doing is to strike a balance in our marketing budget and our capacity as a construction company.
In as much as we are going to set aside a reasonable marketing budget for our construction business, we will also ensure that we start small and build competence and pedigree. In view of that, we will set aside a budget of 50,000 US dollars for marketing our construction company within the first year of operations.
Going forward, we will budget between 5 percent and 15 percent of our annual income towards marketing and promoting of Construction Company in the United States of America and also in the international market.
Statisticians and experts in the construction industry suggests that about 40% of construction projects are now fast – track construction unlike what is obtainable before the 21 st century. India, the United States, China, Japan, France, Germany and The united kingdom are some of the countries that have the largest construction output in their economy in 2015.
It is on record that in the United States of America, the construction industry in 2014 generated around $960 billion in annual revenue according to statistics tracked by the Census Bureau. As far back as 2005, there are about 667,000 registered construction firms in the United States and employing 1 million contractors and the average contractor employed by these companies in no fewer than 10 employees.
In general, the construction industry in the United States of America employed an estimated 5.8 million people in April, 2013 and about 828,000 women were employed in the construction industry in 2011. No doubt, the construction industry is a major employer of labor in the United States of America and in most countries of the world.
The construction industry is one industry that is growing despite the fact that the industry has been around right from the early days when people set out to build the tower of Babel. One is certain, the construction industry is an evolving one and new technology and approaches are being employed when it comes to delivering standard and safer construction projects.
The industry can’t be said to be oversaturated simply because there are different areas a construction company can specialize in and if you are good with what you do, then you won’t struggle much to continue to attract clients.
The factors and incentives that encourage entrepreneurs to venture into the construction industry are the ability to get good returns on your investment with minimal risks. For example, when you secure a contract to carry out a construction project, the norm is that you will be financially mobilized to start the project. It means that you are not expected to use your money to carry out a construction project.
People also get encouraged to go into start their own construction company because on the average it is cost effective to manage the business/workforce. It is the practice for construction companies to hire experts and casual workers only when they have construction projects to execute. They don’t need to maintain a large workforce.
Our target market cuts across governments at all levels and countries, the organized private sector and people of different class and from all walks of life. We know that our selling points will be our excellent and timely delivery of construction projects using global best practices.
We will start with the local market, people, organizations and the government in Michigan, but we hope to spread our nets to clients from other states in the US and thereafter other countries of the world.
Our construction company will be known for working with smaller clients (various individuals) as well as working for bigger clients (various governments and organized private sector). Below is a list of the people and organizations that we have specifically design our construction services for;
Surviving in the business world as a construction company requires more than knowing how to deliver standard projects but also how to network with key people that matter; decision makers that can decide who a project is given to and all that.
We know that it will be a bit difficult to compete with already established construction companies in the United States especially because we are new in the industry.
In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of a Dr. Joe Whyte, a renowned HR and business consultants in the United States of America to help us run a SWOT analysis.
It is important that we know our strength, our weaknesses, and the opportunities that we can leverage on in the industry and the threats that we are likely going to be confronted with.
With that, we will be able to map out strategies that will not only help us to survive in the industry but also to build a global construction brand. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Shannon Berg Construction Company;
Shannon Berg Construction Company can confidently boast of having a competent and highly experienced management team who are regarded as some of the best hands in Michigan.
Although we are a new construction company, but our president and board of trustee are respectable people in the United States of America who have served the US government in various capacity; we are a construction company that has the right network that is suitable for the kind of business we are into.
Well the fact that we are a new construction company could count as a weakness. It is normal for clients to think twice before awarding construction contracts to newbies in the industry.
Another weakness that can count against us in the industry is the fact that we may not have the financial muscles to drive the business the way we ought to drive it. We require huge financial base to be able to acquire some of the latest heavy duty construction equipment.
Our business concept, our mission and vision puts us at an advantage in the industry. We will start small to build trust within Grand Rapids, Michigan and there are loads of opportunities for us there simply because we are well positioned to work with both the state government and the highly organized private sector.
Generally in the construction industry, both the already established construction companies and start – up construction companies are subject to threat from government policies, global economic downturn and unforeseen natural disasters (disasters that may cause setback).
These are the threats that we are likely going to face as a newbie construction company in Grand Rapids, Michigan. Another threat that we are likely going to face is the arrival of a big construction company in the location where our business has strong presence.
We are quite aware that there are big – time investors and construction companies who are well recognized in the construction industry, and we maybe have to compete with them when it is time to bid for juicy government contracts.
It might be challenging competing as a newbie in the construction industry, especially in a highly organized market like that of the United States of America, which is why we were deliberate in choosing our board members. Our competitive advantage is not limited to the crop of highly experienced professions that are members of our management team but also our board members.
Our board members are highly respected professionals in the United States who have served the government of the United States at various capacities; people who are accomplished business gurus and people who have the right connections and experience to make things happen with little or no struggle. For us, it is indeed part of the competitive advantage that we are bringing to the market.
Another positive for Shannon Berg Construction Company is the fact that our Chief Executive Officer / President is a renowned Civil Engineer, he has robust experience in the construction industry and he has worked extensively as a senior project manager for one of the world’s leading construction companies.
He is sure going to bring is experience, expertise and network (connections) to make Shannon Berg Construction Company one of the leading construction brand in Grand Rapids, Michigan and also active player in the global construction market.
Shannon Berg Construction Company was established with the aim of maximizing profits through delivering quality and standard construction works for our highly esteemed clients. We will ensure that we generate income from every available means within the construction industry. Below are the sources we intend exploring to generate income for Shannon Berg Construction Company;
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.
We have relationship with major stakeholders in the real estate and construction industry in Grand Rapids, Michigan and also in order states in the US and we are sure of getting key construction contracts to kick start of business. Below are the projections that we were able to come up with for the first three years of Shannon Berg Construction Company;
N.B: This projection is done based on what is obtainable in the industry and with the assumption that all things that will facilitate easy flow of construction contracts. From our calculations, we are likely going to make a minimum of 30 percent profits after task from executing key construction projects.
Part of business strategy is to ensure that we work within the budget of our clients to deliver excellent and world class construction projects.
We are quite aware that there are major players in the construction industry in the United Stated of America who are not interested in small business deals and that is why we have positioned Shannon Berg Construction Company to take on such contracts.
Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopefully that whatever price we bill our customer will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way going to affect the quality of our construction projects.
Our Unique Selling Point; What Makes Our Construction Company Superior to Our Competitions
Our unique selling point as a construction company is that fact that we handle a wide range of construction jobs; jobs ranging from the construction of estates and skyscrapers to the construction of bridges and airports et al.
Additionally, we will ensure that we work within the budget of each of our clients and also ensure that we deliver any project we handle within the set target date. As a matter of fact, we will work pretty hard to always supersede the expectation of our clients.
Another unique selling point that will give us competitive advantage over all our competitors is the fact that we have some of the best hands in the construction industry under our employment. As a matter of fact, our board of directors and management staff are all people who are well respected in the real construction industry in the United States of America and their profile can easily help us secure construction contracts.
Benefits Our Client Stand to Gain When They Patronizes Our Construction Company
When any client hires our services as a construction company to handle any of their construction projects, they are sure going to get the best from us simply because we know that if we deliver a good construction job, other potential clients can see it and then hire our services as well.
As a matter of fact, we are going to be known for delivering world class structures all over the globe. Creativity, excellence and timely completion of construction projects will be our signature. In view of that, here are the benefits our customers and potential customers stand to benefits when they patronize our services:
When it comes to creating brand identity for a construction business, your construction projects should be your number one brand ambassador, which is why we must ensure that we deliver world class projects at all times. We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
First and foremost, we want our brand to be visible and well communicated which is why we have decided to work with different class of people in the society. All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our construction company’s brand;
In the construction industry, there are opportunities for a construction company to form a strategic marketing alliance with a competitor in the industry especially when the competitor is not offering same construction services.
One thing about the construction industry is that there are construction companies that are specialized only in the construction of buildings / apartments / office facilities et al such construction companies may not have what it takes handle high profile construction projects such as dams, airports, seaports, bridges and skyscrapers.
When such construction companies secure any of such high profile construction projects, it is only natural for them to source for competent construction company to outsource the project to while they agree on profit sharing formula.
For example, bigger construction companies can secure smaller construction jobs that they may not have time to handle due other major construction jobs they are involved in. What is expected of them to do is to outsource it to a smaller construction company that can effectively handle the project.
In essence, a larger construction company can comfortably form strategic marketing alliance with a smaller construction company.
Our Client Retention Strategies (Ways to Improve Our Customer Experience)
The construction industry is one where you are expected to meet the laid down standard in any construction job that you handle, hence the least you can do is to meet up with the industry standards. So as a construction company, we will do all that lies within our power to retain our clients especially when we are able to secure big – time clients like the government.
The truth is that, if a company is able to achieve over 60 percent retentions the company will sure experience huge turn over and such company can comfortably be classified as a healthy company. We have perfected plans on how to improve our customer experience from time to time so as to retain them and continue to get construction contracts from them or to get referrals from them.
These are the ways we intend utilizing when it comes to improving our customer experience so that we can create a good impression and generate repeat business from them:
Possible Ways We Intend Offering Incentives to Our Customers / Clients (Bonus, Discounts, etc)
The possible ways we intend offering incentives to our clients as a construction company is not to give them discount or bonus since giving out discount or bonus is not suitable for the kind of business we run.
If we are to give out any incentive to our clients, it is to give them gifts / hampers during special occasions such as Christmas, New Year, Independence celebrations, Thanksgiving and Esther celebrations et al.
We will also ensure that we make provisions to reward any clients that help us secure a construction job; we will give them commission on any contract that we secure through them. It is a way to encourage them to help us go all out to source for construction jobs since they are going to benefit from it.
Part of the after sales services that a construction company is expected to offer is to ensure that they are directly involved in the maintenance of the project (bridge, stadium, airport, roads et al) for a period of time as agreed by the owner of the project.
This will enable the construction company to effectively access the project and to ensure that it is serving the purpose it was built for. Another after sale services that can be rendered by a construction company is to train the end users of the facility on how to get the best out of the facility and also how to carry out safety measures et al.
As regards customer support services, we will ensure we maximize our customer relationship management software applications so as to keep in touch with our customers and to make sure we carry them along when we have any information that we know will benefit them.
We will also open channels (email, sms portal, phone and mail address) where our clients can lodge their complaints if they have any.
Possible Questions We Intend Asking Our Customers During Our Market Survey
These are the 10 possible questions we are going to put forward when conducting marketing survey on our customers / clients:
Cost Effective Ways We Intend to Advertise / Promote Our Construction Company without Using the Internet
Here are the platforms we intend leveraging on when it comes to advertising and promoting our construction company in the market place;
Low Cost Ways We Intend to Advertise / Promote Our Construction Company on the Internet
We are quite aware that the internet is presently the biggest platform when it comes advertising / promoting any business and one good thing about advertising on the internet that is far cheaper than other conventional advertising platforms.
This is why we will ensure that we explore all available means on the internet platform to promote our construction company. Here are they ways we intending leveraging on the internet to advertise / promote our construction company:
If at all there are any creative marketing ideas that are specific to the construction business, it will definitely be the construction projects they have handled in time past. The truth is that if a construction company successfully completes a start of the art construction project; there are loads of other clients that would want to do business with them.
In essence, if a construction company wants to continue to secure construction jobs, then they must ensure that they deliver unique and world class jobs whenever they have the opportunity to carry out any construction job because that is perhaps one of the easiest means of marketing their construction business.
Lastly, there is hardly any business or company that intends to grow and continue to generate income that is not leveraging on the internet to market its goods and services. So as a construction company, we are going to maximize the internet to market our business.
We will ensure that we have an online catalogue of all the construction projects that we have handled; this will give our potential clients the opportunity to have a view of what we are capable of doing and the king of construction jobs that we are known for.
