By Joseph P. Leverich, CPA

It seems you can't open a newspaper or watch a news broadcast these days without hearing about social networking sites such as Facebook, Twitter and LinkedIn. Now one of your younger project managers is recommending that your construction company put up a Facebook page. Is there really any financial benefit to this ?

The rise of social networking has become too prominent to ignore. Generally, construction companies have been slow to give social networking a try. But that doesn't necessarily mean you shouldn't listen to your young project manager.

Add me?

Social networking sites allow you to set up a company profile containing all the pertinent basics (name, location, description, contact info) and then enable you to interact with anyone else who networks on that site by adding them as a contact.

So why would a contractor throw his virtual hardhat into this milieu? In a word, visibility. By keeping your construction company's name in front of customers, prospects and referral sources (such as architects and developers), you'll stay on their minds when a need arises for your construction services.

For example, on Facebook you can send out status updates (brief messages letting contacts know what you're up to) as often as you like. You might use this function to let everyone know when you, say, win a bid or complete a project. You could also post pictures — or even videos — of job progress or a finished project. You might also pass along important industry news or promote your company's involvement with local charities or community sports.

If done regularly and appropriately, your contacts should eventually begin to rely on you as a resource for what's going on nationally and locally construction-wise. You also can build goodwill by exchanging friendly messages and posting supportive statements on their pages.

What's the problem?

Naturally, there are dangers to social networking. First and foremost, make sure you aren't inadvertently divulging sensitive information such as upcoming project targets or bid amounts.

Also beware of the dreaded "TMI" — too much information. If you update your page too often or with frivolous or even unintentionally offensive remarks, you could wind up turning off clients, prospects and referral sources.

On the flip side, if you don't update (or at least monitor) your page frequently, harmful items can end up on it, or the page can become embarrassingly out of date. So if you're unable to keep up with the rigors of social networking, you're probably best off deleting your profile.

How to begin?

When carefully integrated with an overall marketing plan, social networking can pay off financially. But, as noted, it has its risks. Your best bet is to start slowly; stick to simple, friendly messages; and keep a close eye on what you say.