Construction jobs in winter are challenging to execute. The projects are often put on hold due to heavy snowfall, and slippery ground that adversely affects workers’ ability to operate heavy machinery. During the slow winter months, it is extremely important to work on a construction business plan and strategize on how to effectively book various projects for the year ahead.
This is an ideal time to forecast trends, set achievable targets, and invest in tech-savvy construction equipment. Here’s how your business can plan all activities and ensure consistent revenue streams:
Forecast demand for construction projects
Forecasting construction projects is the first step in creating an effective plan. An analysis of the construction industry can help determine which construction projects are planned for the coming year.
Analyzing industry-specific statistics and growth trends is useful to anticipate changes in the construction rental market. For example, upcoming government investments in infrastructure planning would bring more opportunities in the construction industry and a rise in construction equipment being rented out.
Staying on top of market trends and ensuring that your rental strategies are exceeding industry standards provides a direction for setting the right goals for the year. Adding competitive analysis can further improve internal strategies by observing competitors’ next moves and successfully meeting customers’ expectations. Focusing on your business’s strength and keeping an eye on external opportunities can help define specific goals and objectives in your construction business plan.
Manage and book contracts
An in-depth market analysis provides a fair idea of which construction projects are about to take off and which ones are not initiated yet. This would put your business in a better position to target projects and finalize contracts for the same.
Targeted business segments and projects are essential parts of the construction business plan. For example, if the local commercial construction projects are booming, the construction rental business can target businesses working on such projects and secure two or three large-scale commercial projects as required.
Finalizing rental contracts with large businesses can provide stability for a continuous rental revenue stream over the year. This is because large construction projects are spread over five to six months, divided into multiple phases that require various construction equipment and tools rented out for different stages of construction work.
Construction rental software can help effectively manage the booking process, from sending rental agreements for e-signatures from clients to ensuring that no conflicted booking is scheduled for renting out items. It can easily manage repeated orders and maintain records for reference.
Prepare cost-effective budget and allocate resources
Another rental strategy to focus on in the construction business plan is to prepare a cost-effective budget. Managing lots of contracts can be a cost-intensive task. Increasing revenue streams comes with increasing costs of investing in on-demand equipment and keeping it in top condition for frequent orders. Having a budget allocated for these costs can help avoid overspending on equipment purchases and wisely utilizing resources for other business priorities.
Based on your construction business plan, you can decide on a spending limit for equipment purchases based on an expected budget. If the business plans to target large business customers then a higher budget limit would be required. A balanced approach to setting a budget can help your business avoid overspending on low-sales projects or underspending on revenue-producing projects.
Maintenance: Heavy equipment in working condition
Having equipment available when you need it is the key to successfully fulfilling rental orders. Without it, the business can come to a standstill along with your bank account.
Study your equipment inventory, needs, actual utilization, and the maintenance schedule of all specific construction equipment and regular tools. Detail the important service checklist in the construction business plan to ensure all equipment is processed accordingly. It is important to maintain a proactive approach toward keeping equipment service current, as it is used rigorously on construction sites. Any breakdown can lead to work delays, frustrated customers, and negative business impact.
Set realistic objectives
It is important to set realistic targets as part of goal setting in the construction business plan. An idealistic target, for example, might be to increase rental revenue by 200% in the next year, whereas a more realistic target would be a 30% increase. Setting realistic objectives offers your team a clearer sense of direction and helps productivity. When we know where the business is headed and how to get there, overcoming challenges becomes simpler, and exceeding the targets becomes easier.
In conclusion, a viable construction business plan can define objectives and provide clear direction to streamline rental operations, ensure compliance with industry standards, and effectively increase revenue.
EZRentOut, a cloud-based equipment rental software can help. EZRentOut offers companies in numerous industries seamless rental management along with a host of other features. You can integrate your website with our EZR plug to keep track of all your rental Assets and operations. Try us out today!