How to Grow a Construction Business: 8 Proven Strategies for Success

Growing a successful construction business isn’t just about quality craftsmanship—it’s about strategic growth. 

You may have nailed down the essentials, and your reputation speaks for itself. But how do you turn a strong foundation into sustainable, high-margin growth? And how do you scale without burning out or risking profit?

Here’s the truth: many builders stall at this very point. They try to grow but get buried in back-office bottlenecks, margin squeezes, and relentless competition on price.

You don’t have to settle. This isn’t about trying a dozen different tactics and hoping something sticks. It’s about proven strategies that directly address the biggest barriers custom home builders face. 

In this guide, you’ll discover eight essential tactics to drive growth on your terms—strategies trusted by builders who are now seeing the benefits of better profit margins, high-quality leads, and a business that works for them.

1. Invest In Marketing To Keep Your Pipeline Full

The truth? Most builders don’t spend enough on marketing their construction business. 

The State of Residential Construction Industry Report found that top builders dedicate 1-3% of their revenue to marketing, consistently filling their pipeline with quality leads.

To maximise your marketing budget, get crystal-clear on your ideal client. Use a multi-channel approach to reach them where they are, be it through paid ads, social media, or content marketing. And if you’re not sure where to start, APB’s Builders’ Marketing Blueprint will walk you through it, step-by-step.

Here’s a short explainer video on how the best building companies approach marketing:

2. Collect Client Feedback to Drive Referrals and Loyalty

Imagine every client you work with turning into two or three new projects. That’s the power of referrals. 

Did you know referrals are five times more likely to convert than cold leads? By focusing on the client experience and asking for referrals, you can build a steady stream of new projects—and maintain your margins while doing it, as the trust factor is already established. 

We recommend tracking your Net Promoter Score (NPS) to identify which clients are most satisfied and likely to refer you.

For more tips on generating referrals, take a look at this article on How Builders Generate Referrals.

3. Rethink Your Pricing Strategy to Boost Margins

Optimising your pricing strategy is essential for growth. Many construction businesses fail to differentiate between markup and margin, leading to profit margin shortfalls. Correctly setting your prices—with a focus on value-based pricing—is key to avoiding a race to the bottom and positioning yourself as a high-quality builder.

What is the ideal margin for a building company? We recommend a minimum of a 33.3% markup (55% for remodeling projects), which equates to a 25% gross margin and 10% net profit. 

Not sure where to start? Our Pricing 4 Profit framework teaches builders the nuances of markup vs. margin, so you can price confidently and avoid undercutting your value.

Here’s a short summary of the concept:

4. Build a Strategic Plan and Stick to It

A well-thought-out construction business plan serves as the foundation for long-term success. It aligns short-term actions with long-term goals, ensuring your construction business has a clear direction. 

The key elements of a comprehensive business plan include defining core values, setting a BHAG (Big Hairy Audacious Goal), performing a SWOT analysis, and setting financial projections.

Strategic planning should be broken down into actionable steps that guide daily operations, helping builders stay on track toward their long-term goals. We recommend using a Quarterly Strategic Planning framework—focusing on goals for the next three years, one year, and 90 days—to keep the plan adaptive and responsive to any changes in the market.

When you’re clear on the direction of your business, daily actions become deliberate steps toward sustainable growth. This isn’t about doing more; it’s about doing what matters.

5. Invest in Your Team, and They’ll Invest in You

The success of your construction business relies heavily on the people behind it. Hiring for cultural fit, rather than just technical skills, can make all the difference in building a cohesive and high-performing team. A positive company culture not only attracts top talent but also reduces turnover, ensuring your projects are completed efficiently and to the highest standard.

It’s also important to build an employer brand that makes your company attractive to potential hires. Investing in your team and focusing on culture will pay dividends in terms of productivity and project quality. For more insights on building a winning company culture, check out this podcast episode with Josh Hostetler, President of Hostetler Family Homes:

6. Network and Build Industry Relationships

Industry relationships can open doors you didn’t know existed. Building alliances with subcontractors, suppliers, and peers brings in new ideas, cost-saving options, and even potential clients.

Networking is about more than attending events. It’s about creating real relationships that add value to your business. Listen to our podcast episode, The Benefits of Joining a Builders Network, to find out how to make these connections work for you.

7. Create and Document Systems to Scale with Consistency

If you’re aiming to scale, you already know you can’t do it all yourself. But growth doesn’t happen simply by hiring more hands—you need systems and processes to ensure every part of your business runs smoothly, even when you’re not there to oversee it. That’s where company manuals come in.

Builders who consistently grow have documented processes covering everything: from lead generation to client follow-ups, pricing strategies to project handovers. Each system, clearly outlined in a manual, becomes a reliable playbook that your team can follow, ensuring nothing falls through the cracks.

With these manuals in place, you’ll have a scalable foundation that supports your growth goals. Not only do they empower your team to operate independently, but they also create consistency, freeing you from day-to-day oversight. Every process documented and followed is one less burden on your shoulders, giving you the freedom to focus on high-level strategy and growth.

APB’s member resources offer in-depth guides on building these core systems so you can establish a solid infrastructure for growth. With clear systems in place, you’re not just growing—you’re creating a business that can scale sustainably.

8. Understand Your Financials to Make Data-Driven Decisions

The financial health of your construction business is a key indicator of its growth potential. Understanding how to read financial statements can help you make informed decisions and prevent cashflow problems. 

Reviewing these financial statements weekly, monthly, and quarterly ensures that errors are caught early and that you stay on track to meet financial targets.

Setting clear financial goals and using "what if" scenarios allows you to plan for growth and adjust your budget as necessary. Without a deep understanding of your financials, it’s difficult to make strategic decisions that lead to long-term success.

Want to dive deeper into this topic? Listen to our podcast on Cashflow vs Profit:

Implementing Proven Strategies for Growth

Growing a construction business requires deliberate action and a clear strategy. By focusing on these eight key areas—marketing, client feedback, pricing, business planning, team building, networking, documented systems, and financials—you can set your construction business up for sustained success.

APB is here to support you every step of the way. Whether you need guidance on marketing, sales training, pricing, or strategic planning, APB provides resources and coaching to help your construction company thrive. 

Take the next step by exploring the Professional Builders Secrets Book and discover more about how to grow your construction business effectively.