The construction sector is by far and away one of the UK’s most profitable sectors. In a very competitive industry, there are plenty of profits to be made for the right franchisee. So if you want to know how to run a successful construction franchise and stand out from your competition, read on.
Whether or not you have previous experience in the sector, running a construction franchise is a tried-and-tested way to get the most out of this industry. With only 1% of franchises citing business failure as a reason for closing in 2018 [British Franchise Association], you can expect to be working at the cutting-edge of this industry for many years to come.
Why start a construction franchise?
The construction and home improvement industry is one of the UK’s biggest, most profitable sectors, meaning that for the right franchisee, there are many exciting opportunities. Between 2015 and 2020, this sector was the second fastest growing in the UK, turning over revenues of more than £215 billion, and employing more than 1.5 million employees. [Ibis world].
Although the sector was initially hit hard by the pandemic, this has in turn meant that there is a lot of pent-up demand for construction businesses to tap into. If you can make your business stand out, you could very quickly find yourself on the right side of this demand, reaping huge profits for both yourself and your business. If this all sounds good, here are 6 top tips for running a successful construction franchise.
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How to run a successful construction franchise
1. Specialise your services
The construction service is vast and diverse, and while many franchises operate broadly across the sector, there are also many that offer specialised services within specific sub-sectors. This can often be one of the keys to profitable and sustainable growth as many franchises are seen as go-to contractors in certain industries.
Within the construction sector, you could look at any of the following sub-sectors:
- Infrastructure construction
- Home improvement and construction
- Commercial construction
- Public sector construction
Each of these sectors will have their own specialities and levels of profitability. They may have also been impacted differently by the lockdowns, so it’s important to do your research and to decide which sub-sectors, if any, are the best options for you.
Infrastructure was least affected by the initial lockdown as it was considerably easier to enact site operating procedures and other safety measures on large sites
– Construction Products Association
It’s a well-established fact that networking is one of the best ways to find future clients and employees. It’s also the case that networking is one of the most valuable skills in a franchisee's arsenal.
Investing in good relationships is a vitally important thing for any business owner to do. You will need to invest time in both vertical relationships - with your franchisor and employees - and horizontal relationships - such as with your franchise network and external contractors. This means you have a network of contacts to rely on should you ever need them.
3. Make use of as much training as possible
One of the biggest benefits of being a franchisee is benefitting from the support and training that your franchisor will give to you. Whereas many of your more independent and local competitors will be building their businesses from scratch, you will be able to count on a substantial amount of support over your franchising career.
4. Keep your marketing up to date
This is another area where your franchisor will be able to help you. Keeping your marketing up to date is one of the most important things any business owner can do. With social media growing in scope and scale, it’s never been more important for you to keep on top of your marketing strategy.
There are a number of essential marketing tips you should always bear in mind, but as a general rule, you should always look to have:
- An updated online presence
- Correct contact information
- Smooth customer experience
- Quick response times
- Easy ways for customers to give feedback
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5. Stick to your targets
Business environments change, meaning that your targets will need to change based on how your franchise is performing. However, setting targets for your franchisee business is a good way for you to assess how you are performing.
If you’re meeting targets easily, it may be time to raise your projections and look to faster growth. But, if you’re struggling to meet your targets, your business might be underperforming. If you’ve only recently started, it’s quite possible that you might find things tough at first - after all, starting a new business always brings new challenges. But if these problems persist, it may be time to be honest and to consider making some changes to the way your business works.
6. Recruit effectively
Recruitment is something that you may well find yourself assessed on. If your recruitment strategy is poor, you may be recruiting members of staff who aren’t a great fit for your business. Your performance will suffer as a result.
However, if you’re recruiting with a rigorous approach and against a number of key criteria, you stand a much better chance of finding the right members of staff to help carry your franchise forward. If you need more pointers, your franchisor will almost certainly be on hand to help you out.
Become a franchisee in the construction franchise and enjoy working in a hugely profitable sector
Opportunities in the construction sector are some of the most sought-after opportunities. Given how profitable and rewarding working in this sector can be, it’s no surprise so many are drawn to construction. But, as a franchisee, you’ll have a number of considerable advantages over your competition, letting you reap all the rewards of this industry for minimal risk.
If this isn’t the right sector for you, you can see more options on the UK franchise directory where you’ll be able to filter through the right opportunities for you.
Elliott Fudge, Point Franchise ©