In the dynamic world of construction, businesses need to innovate to stay competitive and profitable. In fact, running a successful construction business involves more than just the ability to build structures - it requires strategic planning, problem solving, and adaptability. One time-tested approach to growth and sustainability is through service diversification.
By expanding the range of services your construction business offers, or even adding a new business pillar, you can attract new clients, increase revenue streams, and build a more resilient business.
Why You Should Diversify Your Construction Business Offerings
In today's construction industry, relying on what has always worked may no longer be enough for sustainable business growth. While your current services may have served you well in the past, diversifying can open opportunities for new markets and increased revenue. As market trends and regulations continue to change, having a diversified business can provide a buffer against potential downturns in the economy.
Construction businesses are in a great position to expand organically by offering expanded services. The most effective way to do this is to grow into an area adjacent to your business. To identify these potential business areas, consider what you're good at and what one step beyond that would look like. Then, look at the potential demand for that service. This approach allows you to leverage your expertise and reputation while also tapping into new markets.
Opportunities for Construction Business Growth in Home Services
One type of work that has seen a steady increase in demand, even during economic recessions, is home service work. Small residential repairs and projects can be the backbone of a successful construction business. That is because clients who need these services are likely to need other services as well, such as ongoing maintenance, installations, and repairs.
This creates a continuous need for your services and a solid base of repeat clients. While these short-duration jobs often take less time and labor, they also require less overhead, making them a profitable service for construction businesses. Let's take a closer look at service areas you should consider for your business.
Electrical and Plumbing Services
Many construction projects involve electrical and plumbing components. This may cause homeowners to hire multiple businesses to get a single project completed. Now imagine if you could provide these components for your client. It's not hard to see how offering a broader range of services will set your business apart, making it a more attractive option for potential clients!
Clients will appreciate a seamless, one-stop-shop experience, and you can improve the control you have over project timelines and quality. With better efficiency and oversight, your construction business could manage and execute the plumbing and electrical aspects of each job internally, reducing the dependency on external schedules and potential delays. Offering electrical and plumbing services can contribute to more consistent year-round revenue streams.
If your construction business has focused mostly on new construction, consider adding handyman services to your offerings. Handyman services can help you expand your business and allow you to cater to a broader range of client needs. It may also give you the competitive edge you need to set your business apart and start attracting clients who are seeking a versatile and reliable provider.
Both the construction and handyman businesses rely on a similar set of skills and tools. Contractors and handyman services complete home repairs and renovations with the main difference being the scale of the projects. Homeowners appreciate the convenience of having a single, trusted provider for both major construction projects and minor household repairs. And while large projects tend to fluctuate seasonally, handyman services offer stability for your business during times of variable demand.
If this sounds like what you are looking for, consider owning a Mr. Handyman® franchise.
Custom Home Storage Solutions
Another service offering that may work well for construction businesses is custom home storage solutions. Construction and renovation projects often involve considerations for storage solutions, such as built-in closets, cabinets, and shelving.
The skills, tools, and expertise required to install custom storage solutions are very similar to those for residential construction. This unique service is a great additional offering for custom home projects and can leverage the existing skills and services within your construction business.
Not only will this help ensure a more comprehensive project delivery, is also allows your business to provide holistic solutions for home renovation projects and diversify your revenue stream. In fact, clients who initially approach your business for their construction needs may add personalized storage solutions once they find out you offer them, contributing to increased project value and revenue.
If a custom home storage solution is the right additional offering for you, learn more about ShelfGenie®.
By adding a landscaping business to your wheelhouse, you can have the whole home covered inside and out. Landscaping is much more than a green lawn and fresh plants. With a landscaping business, you can help create and rejuvenate the outdoor space for your clients.
Landscaping also allows for year-round services with additional verticals such as snow removal, leaf clean-up, and hanging holiday lights.
Find out more about owning a landscaping franchise like The Grounds Guys®.
Grow Your Construction Business with Neighborly®
Adding a residential market to your construction business is a great way to get out of a revenue slump or stagnated growth. But expanding into new markets can be tricky for any business. Fortunately, there are pathways available to help construction businesses like yours expand and diversify their service offerings. One of these pathways is through owning a home service franchise as a complementary or core business.
Investing in a franchise like one of Neighborly’s home services franchises can be a strategic growth move that leverages your industry expertise, operational efficiency, and customer base, giving you a more comprehensive service offering. It can position your business for sustained growth, client satisfaction, and a leading role in your market.
Pairing a construction business with a home services franchise from Neighborly can be a great way to scale your operation and generate a greater share of untapped revenue. Learn more by talking with one of our franchising consultants today.