Starting a business isn’t easy, especially in the construction sector. It may be a lucrative trade, but there’s a lot of work and preparation involved too. In a highly competitive industry such as this one, even the slightest error and oversight can create irrecoverable setbacks and keep you from achieving your goals. And if you want to steer clear of any potentially catastrophic problems and tip the scales in your favor as a contractor, you’ll need to adopt a few essential business practices. In this piece, we’ll discuss exactly what these practices are that’ll give your business a much better chance at success than it would’ve had otherwise. Read on to find out more.
1. Establish a comprehensive and concrete business plan
They say that if you refuse to create a plan, then you’re practically planning to fail. This statement applies to starting a business. The plan must be as comprehensive as it is solid. It needs to include as many details as possible for every phase of the process. From the funding to the timeframe, the more information you include in the business model, the less likely it is to fail and the greater your chances of reaching your objectives. You’ll also give investors and financial institutions a better reason to fund the endeavor.
To ensure that the business plan is developed as succinctly and as efficiently as possible, it would be a good idea to look into various options in the realm of business software. The idea of utilizing business software is not altogether uncommon, as there are plenty of other companies looking to make things more streamlined with the help of the right software. You will find that as you go, startups will need more and more attention. Even if you felt as though you could handle the many nuances with the help of your staff, it is only a matter of time before the paperwork starts to pile up. At that point, the best thing to do would be to utilize business software as much as possible. The best part is that there will always be relevant software no matter the industry!
2. The location of your home base matters
While the majority of contractors tend to begin their respective businesses in their homes, it’s essential to secure business premises so that you can legitimize your operations. However, you must choose your location wisely; your distance from potential suppliers and prospective clients will affect your bottom line, after all. Apart from the area, you’ll also need to make sure that your home base will have sufficient storage and office space.
The area will also dictate specific processes of the company. For example, if you intend to run a contracting business and utilize various construction equipment, the area will play a big part at the storage of heavy machinery. If the area is not conducive to the leasing of heavy equipment, there is also the advantage of renting equipment. However, keep in mind that the traffic also needs to be taken into consideration when renting equipment, as they will have to be moved around often. While there are undoubtedly plenty of factors that go into choosing an area, most startups do not have to put too much attention in the location if they intend to do most of the work from home.
3. Make sure that your business is covered
Making sure that the business is covered with the right policies like the required contractor liability insurance is vital for many reasons. For starters, it helps to protect the company if accidents or problems arise. It gives peace of mind that the business is covered for any unpredictable aspects of the trade. Having insurance also shows your clients that you’re a professional and will likely win you more bids as a result.
While it is true that all startups have to deal with mandatory insurance to even get things off the ground, not every business owner manages to make the most out of insurance. Aside from learning about all sorts of different coverage that can help, the company providing the coverage matters as well. A bit of research goes a long way, which is why it is recommended that you look into several insurance providers and narrow the list before finally making a choice. It is never a bad idea to look long and hard for insurance companies that genuinely care about their clients.
4. Network with manufacturers and suppliers
A construction company rarely finds success – let alone survives – on its own. You’ll need to network with various manufacturers and suppliers and build relationships with them to obtain essentials like equipment and materials at excellent prices. It also pays to reach out to other contractors so that you have other specialists you can call in just in case a project is too big to handle yourself or if it’s something that your company is unable to do. Networking also includes tactics such as outsourcing and white label services, as you can make up for your lack of experience with the experience of other businesses. It’s also the reason why an experienced accountant is always a better idea than going with industry rookies!
5. Keep everything as simple as possible
One of the reasons why many startups fail is that the idea behind their business ventures snowballs and becomes a lot more complicated than it actually is. And as a result, they end up with goods and services that are too elaborate and expensive for their target audience. Because of this, it is good standard practice always to try to narrow down the focus of the business. Concentrate on delivering excellent offerings for your customers and stick with simple online marketing strategies instead of adopting large-scale campaigns. As a startup, you don’t need everything that a large corporation requires, and you’ll just end up spending money you won’t be able to make back by doing so.
6. Monitor your expenses
Very few business owners find the task of keeping track of their companies’ expenses appealing. However, it’s critical that you do, even if you already have the services of a professional accountant. After all, doing some number-crunching won’t just make you more aware of the business’s finances and help you improve your ability to manage its financial resources. But you’ll also give you an idea of which areas of your startup that you can potentially save costs on, increasing your overall profits.
7. Never make a financial commitment without shopping first
The success of any business venture is usually measured by how well it keeps its costs down without making any concessions that could potentially compromise the quality of its offerings. If you want to reduce your fixed expenses and maintain high standard products or services, you must always shop around first before you make a financial commitment. You’re far more likely to secure better deals and find cheaper options if you give yourself the chance to explore every avenue first. It may appear like additional work that many of us would undoubtedly rather be without. However, it can go a long way in helping you business sustain its operations and achieve success.
8. Learn to delegate
Ask any successful entrepreneur, and they’ll tell you the same thing: don’t micromanage. Instead, learn to delegate. When you get right down to it, there’s a limit to what we can achieve on our own, and you’ll be compromising the efficiency and productivity of your daily operations if you don’t assign responsibilities to your team. More importantly, by delegating, you’ll show your employees that you trust them enough with their tasks, which in turn, will get you much better results.
9. Open yourself to joint-projects
These days, it is fairly common for startups and SMBs to collaborate on joint projects and ventures, and it isn’t hard to see why. For starters, it opens them up to new markets without having to invest in any advertising campaign. It also effectively minimizes the risks of the endeavor because the investment is shared by all parties involved while maximizing their chances of achieving success in the process. So if the opportunity comes up, don’t shy away from collaborations.
10. Make sure that your business is compliant
If you want to build a professional business that inspires confidence, you must show your clients and target audience that your company is efficient, organized, and acquiescent with all the relevant laws, standards, and regulations of your chosen industry. To do this, the business must have all its legal matters sorted out. From the necessary registrations and licenses to essential permits and certifications, ensuring that your business has all that it needs to run its operations won’t just give you peace of mind. It may also keep your existing customers happy and help you secure your target market.
There’s no denying that it’s a colossal undertaking to achieve success as a construction business. But as they say, nothing easy is worth doing. And by adopting these best business practices, you’ll present your business with more opportunities to succeed where many others have failed.