Entering a New Market as a Construction Company

Whenever a business attempts to break into a new market, it is met with challenges. The process is a little easier for businesses that are expanding, as they have their initial locations to fall back on. And they have built up a reputation with those locations, which allows them some brand recognition and good will when they enter a new market.

But a small business that is attempting to enter a market that already has existing players is always going to find it challenging. And it is especially true when we are talking about the construction industry. So what can be done?

Tips for New Companies in Construction

If you are contemplating opening a construction business in the Midlothian area, we have some tips for you.

  1. Offer the Most Competitive Prices

It may sound obvious, but one way to get a leg up on the competition is to offer lower rates. When an asphalt paving company in Midlothian is starting out, they have to compete. By offering 10 percent lower prices across the board, they can become a tempting proposition for some.

Yes, you will have customers who will still go to the companies they trust. But not everyone is going to go that route. Many will look at those lower prices and take a chance on you, especially if you are offering good terms and warranty on your services.

  1. Treat Customer Interactions Like a Long Term Relationship

The worst mistake that a new company can make is acting short or cold with customers. When you are entering a new market as a small business, you must establish relationships.

A driveway pavement contractor in Midlothian is not going to make a lot of money from the same customer every year. But talking to a customer like you are building a long term relationship is helpful in two ways. It establishes trust, while it also increases the chances of the customer recommending your business to others.

  1. Provide Genuine and Honest Advice

Customers are tired of construction companies that just want to make an extra buck at their expense. They have seen that attitude from far too many companies. It is what you can use to differentiate your brand from others.


When entering a new market, ensure that you always try to help customers with honest and genuine advice. Say a customer asks a driveway paving company in Midlothian about what type of driveway to get. The company could say something like concrete, as it would make them more money. But if they want to be honest, they would say asphalt, as it is the most affordable in the short and long-term.

  1. Limit Overhead

The first years are always difficult for a new business. There is no way that you can make huge amounts of money during the first couple years. You are already offering lower prices compared to the competition. And you may have some stretches where you do not have any pending work to complete for customers.

The best way to manage such a situation is to limit overhead. Only hire the bare minimum full time employees, keep everyone else part time. It is not a nice thing to do, but it is necessary to ensure that your business is still viable two or three years down the road!

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