The construction business generates vast revenues for the economy every year. Construction is the lifeblood of the economy, and its activity can reveal a lot about the housing market’s current state.
Since the construction business is essentially an outdoor role, winter tends to experience a drop in economic activity. Most companies focus on maximizing their profits in the summer to overcome the costs of winter, but the most innovative construction businesses think about their winter hustle.
Let’s examine the core aspects of your winter business strategy.
Think Winter Business Ideas
Contractors often turn off the lights and fight for the few scraps of outdoor construction work available. It makes sense when you consider that 80% of the construction jobs lost by the pandemic have already been recovered.
Consider expanding your range of services into winter-specific offerings. Some smart ideas for generating winter revenues include:
- Snow Removal – Add snow removal services during the season. Removing thick, brutal snows in your territory can pay the bills and keep your business afloat.
- Premium Energy Efficiency – Winter energy bills often soar as Christmas lights, décor, and increased HVAC unit usage increase your carbon footprint. Approximately 20% of Americans couldn’t pay their bills in 2020. Offer premium, cost-effective consultations for residential and commercial buildings as a service.
- HVAC Servicing – Winter is the best time for servicing HVAC units when demand is traditionally lower. Offer servicing for HVAC users as an extra service.
Offering a special suite of winter services can transform your construction business and help you better serve your community’s needs.
Westland Greenhouse Solutions is a North American company specializing in commercial greenhouse structures and supplies. They provide full commercial greenhouse construction services and ensures your greenhouse project is on track every step of the way.
Focus on Marketing and Retention
Marketing for construction businesses is often an afterthought. Yet marketing keeps a constant stream of clients flowing through your inbox. Customer retention is also important, but checking in with your previous clientele takes time and effort.
Most construction companies experience a lull during the winter months. Use this time wisely to reinvent your marketing pitch—Check in with your existing customers. Work on your overall branding to differentiate yourself from the competition.
Dig Up More Leads with Trade Shows
It surprises many to learn that construction businesses often hold conventions and trade shows across the country during winter. The industry experiences dramatic spikes and crashes annually. Organizers know that the summer months are inconvenient for contractors due to the volume of work on their plates.
Attend trade shows and conventions. Expand your knowledge base and use those lessons to help you create a better business. The most proficient contractors are constantly learning how to improve their work.
Finally, it’s an excellent chance to check in with others in your industry. If you’re looking to collaborate with companies offering different services, winter is the time to do it.
Reassess Your Finances
Keeping track of your expenses will help you to eliminate any unnecessary expenditure. Maximize your profit margins by taking a deep dive into your spending for the previous year.
If you already have a business accountant, set up a meeting and comb through the numbers. Give yourself new insights and develop a plan for the year ahead.
You may also choose to negotiate some of your ongoing expenses. For example, Next Insurance recommends using the winter to reexamine your construction insurance policy.
Searching for insurers offering the same cover at better rates can enable even a small construction business to save thousands every year.
Focus on the Interior
Contractors may choose to focus on the prominent aspects of their businesses. Erecting new buildings and hanging from the side of a new skyscraper may yield the largest gross revenues, but there’s much less of this type of work throughout the colder months.
Think about the interior services you can offer. Home modification and inspection services are one thing, but many construction companies move into small-scale home renovations.
Installing new bathroom floors, renovating kitchens, and changing the internal layout of homes can help to keep you and your team busy.
If you need to work on masonry, framing, or pouring concrete, you’ll need to schedule this type of work before the first snowfall of the winter. The key to managing your schedule is local weather research. Most construction contracts will not provide for additional expenses caused by winter weather unless the weather is especially severe.
Planning your winter interior modification services typically happens at least a year in advance.
Drum Up Business with Seasonal Incentives
Clients always love discounts and promotions. Provide seasonal incentives to encourage clients to jump and schedule your services. They’re a great way to reward your regular customers and attract new ones.
Pairing services with other services is a common way to increase the attractiveness of your offerings. For example, if someone books a home renovation service, you may decide to provide a home inspection for free.
Just make sure you don’t get carried away with incentives, or you could lose all your winter profits. Schedule these promotions during the summer and fall. The last thing you want is to come across as desperate.
Always opt for limited-time offers to increase urgency and make it more likely that people will schedule a slot during the winter.
Prepare a Winter Plan for Success
There are so many additional hazards to take into account during winter. Slips, falls, and hypothermia are just some of the risks incurred by performing work in the colder months.
You also need to consider winterizing your equipment and ensuring you have safety precautions in place to make sure you don’t burn down someone’s house or break your equipment. Depending on the state you’re located in, you might be required to enroll your employees in a construction site safety training which will ensure safety in and around all construction sites.
Prepare a winter plan in advance or risk catastrophe.
Winter in the construction business doesn’t need to be a disaster. While some contractors may choose to hibernate, you’re leaving money on the table by doing so.
Turn your seasonal business into a year-round operation by using the winter months. Take a proactive approach to winter projects, and you’re sure to see your business soar.
What plan do you have in place for the winter months?