And finally, the contractors in this camp plan so well that a strong finish is inevitable, he said. Set aside enough capital to weather the downturn or softening of the construction market that is to come, he advised. Inputting data into visually interactive dashboards can be a powerful tool for tracking overhead and determining how much is appropriate. The better approach is to incrementally grow people first, he continued, noting that dashboards are particularly helpful in tracking the success of this measured strategy.
Contractors are risk-takers by nature, said Engelbrecht, and must be careful not to let this strength become their pitfall. Most job failures can be traced to a bad decision in taking the job on when the red flags were present, he said. Follow Kathleen Brown on Twitter. Topics covered: commercial, infrastructure, design, green, regulation, multifamily construction, and more. Search x. An article from.
The 10 traits successful contractors have in common. Published April 4, Share it post share tweet. The Family Business Institute. Get construction news like this in your inbox daily. Subscribe to Construction Dive: Email: Select Newsletter: Construction Dive Topics covered: commercial, infrastructure, design, green, regulation, multifamily construction, and more.
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The 10 traits successful contractors have in common | Construction Dive
The 10 traits successful contractors have in common
They also recommend which products you should use for each type job and where to find sub-trades. After that, network in your community both online and offline by attending chamber of commerce meetings or answering questions in a local newspaper forum. Cash-flow struggles due to delayed payments from customers are actually common.
The reason: The mentor has "been there" already. This is your long-term answer to any micromanagement problems that you may have. By hiring people who are smarter and more talented than you are, you can trust them to handle any assignment on their without your supervision. This gives you more time to focus on growing your contractor business. When sending out bids, factor in the costs involved with the project, particularly materials and labor, and give the customer a ballpark estimate.
This shows you how much money you have coming in and how much is going out. If the amount going out surpasses the amount coming in, then you have to start making some changes by cutting unnecessary expenses and raising your rates. Does your business have a particular specialization or cater to a niche market? Then definitely capitalize on what makes your business different from the others in town. It could simply be your ability to provide services specifically for offices, as opposed to other contractors, who solely focus on residential properties.
However, make sure that you offer a healthy balance of products of services. Is it really worth chasing down a couple of hundred bucks from a deadbeat customer who only asked for some minor contracting work? Or, would you rather land a major project from a client who pays you upfront?
Always keep in mind that you want customers who deliver a solid ROI, instead of those who give you headaches.
To save you this aggravation, learn how to spot these customers before agreeing on a project. For example, accounting can be nerve-wracking and time-consuming. So, why not contract out all of your bookkeeping and accounting needs to a freelancer or CPA? After all, being prepared is the key to efficiency and profitability. That part now can set you back a couple of hundred dollars because you have to overnight it. Even running to the local hardware store costs you time and money. Staying small also reduces stress since the workload is easier to manage.
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