• Arizona Contractor & Community

How to Get a Competitive Advantage for Your New Construction Business

By Ross Kimbarovsky


Construction is a popular industry, but it has a high failure rate as more than 60 percent of businesses close within the first five years. There’s a lot that goes into building a successful construction business, including a solid business plan, team, and marketing strategy to help find customers.


Here are three things to get a competitive advantage for your construction business:


1. Pick a Niche


One of the keys to success in the construction industry is identifying and embracing your niche. It will be much easier to differentiate yourself from generalized construction companies if you specialize.


Think about it. If you had lung cancer, would you go to a general practitioner or an oncologist specializing in lung cancer? You’d go to that lung cancer specialist – because they’re the best chance you’ve got to solve your unique problem.


The same is true for people seeking construction services. They’re going to have to spend their money and want some degree of assurance that it’s going to be worth it and that they’re working with the right company. Few people or businesses are great at everything. Knowing that you provide construction services catered to their specific needs will boost a customer’s confidence in your ability to get the job done well.


For example, some construction businesses specialize in installing and repairing roofs, siding, and gutters, while others specialize in remodeling bathrooms. Some focus on resealing driveways while others specialize only in new residential construction.


If you’re struggling to identify what your niche might be, these techniques might help:


  • Identify underserved specialties in your field. If there are already too many roofers in your geographic area, pick another less competitive segment.

  • Determine which areas customers struggle with the most. For example, even if there are many painters in your area, is it still difficult for people to find a quality, affordable painter?

  • Ask yourself if your unique background provides you with a rare area of expertise.

Whatever niche you choose, don't make the mistake of trying to be the right fit for every customer. Choose your specific calling and then market your skills to that audience. This is an integral part of your company's brand identity and will help you create more influential word-of-mouth referrals.

2. Define Your Services


A service is impossible to see before it’s been delivered. And, customers don’t like to pay money for vague promises. If you want your construction business to succeed, you need to show your customers the specifics of what you will offer – and deliver. That starts with you defining your services and deliverables, which is vital for three reasons:


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To read the rest of this article, you are invited to purchase the digital issue here.

This article originally appeared in the bimonthly Arizona Contractor & Community magazine, Mar/Apr 2021 issue, Vol. 10, No. 2.


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