The construction industry makes up around 4 percent of America’s gross domestic product. People who love working with their hands and creating things can make a great living as a contractor.
With all of the competition in this industry, you will have to find a way to set your contracting business. Failing to adequately market the construction services you offer can lead to big problems.
If you have been in the construction business for a while but are having a hard time acquiring new clients, now is the time to shake things up. Read below to find out more about how to build an efficient and successful contracting business.
1. A Contracting Business Can Only Be Successful With the Right Team
One of the main concerns you should have as a business owner is building the right team. While this may sound like a relatively easy task, it is anything but.
Currently, construction companies are having a hard time finding skilled laborers to hire. The best way to solve these hiring issues is by working with a staffing agency.
Often times, these agencies will have a large pool of talent they can pull from. Before hiring a staffing agency, you need to find out more about the various industries they serve.
Ideally, you want to hire an agency that deals exclusively with companies in the construction industry. By doing this, you can rest assured that the employees you get will be high-quality.
2. Being a Good Leader
Some newcomers to the world of small business ownership think that managing their team is the same thing as being a leader. Simply telling your team what needs to be done is not the same thing as leading them.
Your workers need to see that you are not afraid to get in there and get your hands dirty. It will be very hard to properly lead your team if you are never on the jobsite with them.
Being too far removed from your business will come back to haunt you in the long run. You need to be in the trenches with your workers each day to show them the right way to do things.
The last thing you want is for your workers to produce shoddy work for a client due to a lack of supervision. This is why you have to make time to be at the jobsite on a daily basis.
3. Invest in Your Contracting Business
Once your contracting business starts to make money, you need to figure out how to best invest it.
Taking the money and buying a new boat or house may seem like a good idea, but you need to avoid this. Investing this money into new equipment and software is a great way to improve productivity levels.
Even if you can’t afford brand new equipment, you should be able to find quality used items for a good price. Before investing in used machinery, you need to do your homework.
Taking a mechanic with you to look at the machinery is a great idea. They will be able to alert you to any issues that may exist. Knowing this information can help you avoid a case of buyer’s remorse in the future.
4. Be Selective About the Jobs You Take
Taking any and every job that is presented to your contracting business is usually a bad idea. Being selective about the jobs you take will allow you to increase profits and avoid overextending your resources.
By taking every job you are offered, you will be spreading yourself and your staff thin. This can lead to tasks going uncompleted, which will put your business in a bad light.
Before you take a particular job, you need to go out and give an estimate. Not only does this estimate help the customer, it can benefit you as well.
Getting a firsthand look at what a particular job entails will help you decide whether or not you need to take. Offering these estimates for free is a great way to attract new customers.
5. Play to Your Strengths
Some new contractors make the mistake of trying to do every job involved in building and maintaining a structure. If you don’t have experience with doing things like hanging drywall or painting, then you probably need to avoid taking on jobs that involve these tasks.
Ideally, you want to play to the strengths you have. This means that if you are exceptionally good at carpentry work that is what you need to offer clients.
Trying to do too much, too soon is a recipe for disaster. Your clients will appreciate your honesty if you tell them that you are not qualified to do the job at hand. Neglecting to be upfront and honest can lead to you producing less than stellar results due to a lack of experience.
6. Networking is a Great Idea
Most contractors underestimate the value of networking with people in the building industry.
Pairing up with a real estate developer can help you keep a steady flow of high-paying work. Generally, most areas will have trade associations.
Attending the meetings held by this association is a great way to rub elbows with like-minded professionals. The time and effort you put into networking will definitely be worth it in the long run.
Having the Right Tools is Essential
As any successful contracting business owner will tell you, having the right tools is a big part of making money. Utilizing the power of technology is essential when trying to remain competitive in this industry.
Are you looking for a way to track the work your team is performing? Check out our blogs to find out more about the productivity tracking apps and software we offer.