As you head out on your own as a licensed contractor, you have the opportunity to create a solid income for life. But if you set yourself up for success from the beginning, you're sure to experience a smoother and faster route to the growth you really want.
So, how can you set up your fledgling business for success? Here are five habits to develop.
When they start a one- or two-person operation, many small business owners are lax about keeping up business-like standards. You'll be very busy, you won't have experience with accounting matters, and you may not have a lot of money to invest in financial tools.
Make the effort, though, to start out as much as possible doing things in the most business-like way feasible. This helps develop good habits and avoids large-scale changes as your needs grow.
Marketing is one of the most important keys to building any business. But it's also one of the most challenging for many contractors. After all, you got into the trades because that's what you enjoy - not marketing and advertising. However, marketing gets your foot in the door, so to speak. You probably can't hire much outside assistance at this point, so learn quickly to handle your own promotion.
Educate yourself on how to use modern advertising mediums, including social media, company websites, blogging, and email to raise your presence and become a useful source to potential customers. Balance local sources such as the Chamber of Commerce with online review sites and search engines.
Other contractors are a source of expertise in many areas. And you can tap into this expertise in a variety of ways. For instance, join local trade associations and community organizations geared toward your industry. Talk with those who have been in business for a while. Ask questions and really listen to answers.
While your best source of mentoring is those who have contracting businesses of their own, you can also learn a lot from many small business owners. Form the habit of speaking with everyone, then parsing out small advice treasures you can use to better your own work or company.
Keep a tight grip on your new business's finances. For hard-working contractors, this is a challenge, but cash flow and profit margins are key when your business is young. Even as you grow, your company will have cycles involving more work and profit as well as less work and profit.
Learn skills involving your money now. Can you determine the profit margin on any given job? Do you know how to project cash flow? How do you determine when outsourcing a skill is the wise move? Do you focus on customers who are more likely to offer future work potential? Do you habitually use a set time to work on invoicing and collections efforts? Keep building your skills managing the finances.
Finally, embrace change. Use the valuable lessons you learned in contractor school, but be open to new ways of doing things. Constantly assess profit margins, timelines, and administrative processes to see what the weaknesses are and what the strengths are. Don't be afraid to make changes that lead to more efficiency. And take advantage of technology, such as apps to manage invoicing or scheduling.
At
Golden State Contractors School, we know how hard starting your contractor business can be. That's why we provide practical assistance and training throughout your education. Call today to learn how we can help you get started in this lucrative field.
