Running a successful construction business is about more than just technical expertise and project management; it's fundamentally about building and maintaining strong relationships. The best construction business builders are also the best relationship builders. Thats why we train our construction sales reps with best practices and share these with owners too.
Here's why:
Trust with Clients
Your clients need to trust you with their projects, which often represent significant financial and emotional investments. If they pick the wrong contractor, it could mean big headaches, extra stress or potentially losing their job. Pick the right one, they can take stress of their backs and make them look good.
Building this trust starts with good communication, reliability, and delivering on promises. When clients know they can count on you, they are more likely to return for future projects and recommend you to others.
Managing Your Team
A successful construction project depends on the people executing it. Recruiting, managing, and motivating the right team requires excellent people skills.
Understanding your team's strengths and weaknesses, providing clear direction, and recognizing their hard work are crucial. When your team feels valued and understood, they are more productive and committed to delivering high-quality work.
Negotiating with Trade Partners
Strong relationships with trade partners are essential for negotiating the best prices on materials and hiring skilled subcontractors.
Building these relationships involves more than just transactional exchanges; it's about creating a sense of partnership. Fair pricing, timely payments, clear communication, set expectations and mutual respect can help ensure that your partners are motivated to work efficiently and prioritize your projects.
If you need tips for hiring the best, read our blog on hiring subcontractors here.
Handling Problems
In construction, problems will inevitably arise. Whether it's a delayed shipment, an unexpected design change, or a personnel issue, resolving these challenges often involves effective relationship management. How you deal with problems can define your reputation.
Maintaining calm, clear communication and a problem-solving mindset can turn potential setbacks into opportunities to strengthen your relationships.
Top Tips for Building Strong Relationships
1. Listen More Than You Speak:
Why It Matters: People appreciate being heard. Active listening helps you understand their needs and concerns, building trust and respect.
How to Do It: Make a conscious effort to listen without interrupting. Summarize what the other person has said to ensure you’ve understood correctly, and ask follow-up questions that show your interest and engagement.
2. Empathize:
Why It Matters: Putting yourself in the shoes of the person you are talking to helps you communicate more effectively and meet their needs.
How to Do It: Try to understand their perspective and feelings. Even if you have a different opinion, hear them out first and show they that you understand theirs. Acknowledge their emotions and validate their experiences, which can help build a stronger connection.
3. Ask Good Questions:
Why It Matters: Engaging questions can open up conversations, reveal valuable insights, and show that you are genuinely interested in the other person.
How to Do It: Ask open-ended questions that encourage detailed responses. Avoid questions that can be answered with a simple yes or no, and follow up on their answers to delve deeper.
4. Focus on Others:
Why It Matters: Making interactions about the other person, not about yourself, shows genuine interest in their needs and concerns.
How to Do It: Shift the focus of conversations to the other person. Ask about their experiences, opinions, and goals. Show appreciation for their input and contributions. Don’ t get talking about what in it for you, focus on what is in it for them.
5. Absorb Stress:
Why It Matters: Don’t let your stress become others’ stress. Handling pressure calmly helps to create a stable and positive working environment.
How to Do It: Practice stress management techniques such as deep breathing or going for short walks. If you get bad news, don’t react emotionally, take a step back and think about action you can take to move forward. When communicating, stay composed and avoid letting your frustrations show.
6. Be Genuine:
Why It Matters: Showing genuine interest in others helps build deeper connections and fosters mutual respect.
How to Do It: Take the time to get to know people on a personal level. Ask about their interests, families, and personal goals. Remember details about past conversations to show that you care.
7. Stay Calm in Crises:
Why It Matters: When problems arise, maintaining your composure ensures that you can make clear, rational decisions.
How to Do It: When faced with a crisis, take a moment to breathe and gather your thoughts before responding. Gather all of the details you need to make a proper decision. Communicate calmly and clearly, and take a step-by-step approach to resolving the issue.
8. Communicate Clearly and Often:
Why It Matters: Effective communication prevents misunderstandings, aligns expectations, and ensures everyone is on the same page.
How to Do It: Provide regular updates and check-ins with clients, team members, and partners. Set a plan and clear expectations from the beginning. Communicate those expectations early and often. Use clear, concise language and ensure that all parties understand their roles and responsibilities. Be transparent about progress, challenges, and changes to maintain trust and collaboration.
9. Addressing Objections:
Why It Matters: In sales, your bound to run in objections, a concern a potential customer raises during the sales process that indicates they might not want to purchase your service. If you don't know how to handle objections, your going to win way less deals.
How to Do It: When someone gives you an objection, wether its that your pricing is too high or they don't trust working with anyone aside from their trusted contractor, the first thing you want to do is understand their objection.
I will start by repeating back to them the objection to show them I understand them. For example, I might say "I understand why you don't want to switch your switch your contractor, if the last time you did that, it didn't work out." and then you can follow up with a solid question to either clarify the objection or find a path forward. You might ask "what exactly happen in the past when you worked with a new contractor?" Diagnose the problem and then find a path forward. Ask something along the lines of "Is there anyway that we could earn your trust?" and make some suggestions.
By focusing on building and maintaining strong relationships, you can create a solid foundation for a thriving construction business. Trust, communication, and genuine interest in others are the cornerstones of success in this industry. Invest in your relationships, and you'll see the dividends in your business growth and stability.
If you want to learn more, sign up for our free construction sales course here.
Understanding Your Market
The success of any startup relies heavily on understanding the market it operates in and identifying the ideal customers within that market. Understanding your customer and becoming a subject matter expert is key, especially at the formidable stages.
By having insight into potential customers, you know what problems you should be solving with your product and how to communicate in a way that appeals to them.
The market is the broader industry that you serve. The ideal customer dives deeper into who your product is the best fit to serve. It's a way to segment your customers.
You might not know who your product best serves yet, and that is okay, but it's important to hypothesize and test who is.
Make some assumptions about what would make a customer a good fit for your product and test those assumptions otherwise, use your current customer base and data to guide you.
Here are some of the key steps to understanding your market and identifying your ideal customers:
Understanding Your Market
1. Research industry trends and news: Stay updated on current and emerging trends in your industry. Search Google news, read articles and follow the right people on social media to gain insights into customer preferences and potential opportunities.
