Savvy contractors remember the 2008 housing crash and the ensuing failure of thousands of construction businesses. The lesson learned? Whether the economy is in boom or bust mode, it is important to utilize solid business principles. Here are 10 tips to help build or maintain a financially stable construction company:
- Build a Great Team. Surround yourself with the best. Offer a competitive salary and benefits package and provide a plan for career growth. Happy employees are productive employees—and tend to remain with the company.
- Create a Budget. Cash flow is a common issue. Scrutinize every expense and eliminate anything that is not necessary. Stay on top of accounts/receivables invoicing. Learn to acquire funding, if needed, from outside sources such as lines of credit, construction loans and over-draft protection.
- Find Your Niche. Is it better to be pretty good at everything or excellent in one area? In the construction business, it pays to find your sweet spot.
- Market Yourself. These days, referrals and word-of-mouth advertising are not enough. Harness the power of social media for effective marketing
- Learn To Say “No.” Many contractors find it difficult to turn down work, but not all jobs are created equally. Projects figured on a time plus cost basis or that feature a difficult client just aren’t cost-effective.
- Produce a Great Product. Quality is king, and your business will rise or fall based on your results.
- Make Customer Service a Priority. Responsiveness and punctuality go a long way in making any business a success.
- Outsource Special Needs. Consider hiring a CPA or a freelancer for bookkeeping duties. Look outside the company for help with social marketing and/or web design.
- Attend to the Details. Don’t fall behind on required licenses, bonds and insurance. Make sure your business is in compliance
- Join a Trade Association. Why go it alone?
Contact ABC Baltimore today at 410-821-0351 to learn more about the networking, training and mentoring programs available to general and specialty contractors.