What investments contractors should take during recession
The recession is inevitable, and many are already starting to face it. The question is whether there will be a soft landing? This is something we will find out only after we overcome it.
But during the recession, should contractors make any investments? If we look at the past recessions, then during a recession it is better to hold investments because there will be much fewer ongoing projects and hence less work.
But recession is the best time when you finally have enough time to rebrand yourself, find new markets, change your website, and be more active with social marketing.
Let’s see what we mean with that!
Rebranding your company
When economy is strong projects are coming by themself. Margins are strong, and your only problem is where to find employees; you don’t have time for anything else. During a recession, there will be less work, so that is the right time to think about rebranding. It is time to redesign your website, update new content, and improve your SEO strategy. By rebranding your company, you can gain the trust of your clients and employees. You can show your values through case studies, etc. With a successful rebranding strategy, your company can attract more great talents.
Great talents always want to work with companies that have history and care about their employees and their work. Construction workers love what they do; they treat their projects like their kids, and if they see the same values in companies, they want to stay with them.
But before finding the right agency, it is better to do good research and choose those who know how the construction industry works! You don’t want to hire an agency or copywriters who are not specialized in construction. You know how special the construction industry is!
Finding new markets
Theoretically, companies should be looking for new markets before a recession. When things get out of control, it means it is time to look for new markets. Why? At those times, demand is higher than supply, making it easier to get into new markets. But few are following this tip, and if this has been missed, then this is the last time when companies should distribute their risk. It is time to find alternative markets. This will redistribute your risk in case your main market underperforms.
Employ an extra sales manager. This is the time when competition will be tougher. Margins will be slimmer, and more companies will apply for the same tender. Fight for every possible project. Be ready that suddenly a project for which you already have a contract could be cancelled.
Be active on social media.
Spread the word about what you do. Social media is another source where you can get clients, but more importantly, increase your company’s recognition. People working in your industry will see you, and eventually they can start to talk about you. More and more great talents will start to apply for your job positions. All of the successful construction companies are now starting to perform on social media.
The main benefit of doing so is that it will attract great talents. If you are a contractor, you know how hard it is to find and keep great talent. But being active on social media can be time-consuming, and results can be seen only with time.
Many contractors and companies are using storytellers and copywriters who help them manage content.
If you have strong balance sheets and enough cash reserves, then a recession is a great time to strengthen your company. The recession will overcome those who are smart and strong. This is a great time when you can rebrand yourself, open new markets, and strengthen your company. Because once the recession is over, you will need more talents, and they will want to work with companies that care about them and what they do.