Without freelance contractors, homes and offices would definitely fall apart. Since freelance contractors are an absolute necessity, they’re considered to be key contributors to our economy. If you’re planning to set up your own contractor business, you’ll need to learn how to build one that’s going to last. If you already own one, arm yourself with the right information about things like contractor financing, and more. Check out these helpful tips that can help you grow your contractor business given by SMB Compass:
1. Establish a system that uses the industry’s best practices
Contractors usually encounter problems when they try to improve their efficiency and grow their business. One of these problems includes agreeing on the industry’s best practices. Most contractor businesses are not so keen on changing the system they’ve already set in place. They don’t like to change it because it works and they’re familiar with it.
However, having a system that operates with the best industry practices is a must. You can use a system that can handle scheduling, bookkeeping, invoicing, task management, and training. Be sure that it can provide your employees with step-by-step instructions for specific tasks. Establishing an effective system allows you to maintain your level of success and prepare your business for future growth.
2. Conduct a comprehensive assessment or your internal organization
It’s extremely important to assess if your contracting business is financially stable or otherwise. You’ll also need to know if you’re getting repeat sales or customer referrals. Determine your employee turnover rate and try to find out how your customers rate your business.
You can find the answers you need when you review your books, talk to your employees, and check out what your customers are saying about you online. Before you think about growing your contracting business, areas that need to be improved must be promptly addressed.
After you assess the internal state of things, create key performance indicators (KPIs) and an action-based plan. These points can help you assess employee morale, productivity, and overall company growth. If you want a long-term business, you need to create contract management goals and objectives(you can find more info on contractnow.com). You may opt to get a team on board to keep track of this, or simply get a management software. Remember that conducting a comprehensive assessment is not just to put out fires, but also to develop a sustainable system that improves overall operations.
3. Be available to your customers
Be sure that you make yourself available to your prospective customers during normal business hours. This is absolutely necessary if you want to avoid losing your customers to your competitors. When you’re out of the office, it’s best to send business calls to your smartphone so that you can promptly address their questions or concerns.
Also, clearly state your business hours and physical location on your website, social media channels, and business cards. During off-hours, set up social media messages and automated email with a message that informs your customer to expect a response within 24 hours.
4. Join industry associations
When you join industry associations, you’ll have opportunities to foster good business relationships and cultivate important business skills. You’ll also get recommendations and insights that are relevant to your contractor business.
5. Up your marketing game
Build a stronger digital presence by interacting with your target audience through your website, social media, email, and blog posts. Also, make sure that your address, phone number, and business hours are accurate, updated, and easily searchable online.
It’s also important to network in your community offline. You can do this by advertising your business in the local newspaper and attending the Chamber of Commerce meetings.
6. Find someone to mentor you
You’ll need a more mature and experienced person to stimulate your personal and professional growth. This trusted advisor can offer you guidance as you attempt to solve certain problems. A mentor can also connect you to people who are willing to invest in your company, to a talent that can help fuel your business, and to your target audience. This mentor could be a retired contractor, a family member, or somebody that you need to hire.
7. Keep an eye on your finances
Aside from paying attention to your overhead expenses, you’ll need to consider any additional costs before you decide to accept a job. It’s also important to factor in the costs that are involved in a certain project before you give your customer a ballpark estimate when you send out bids.
Creating a budget is also a must when it comes to handling your overhead. By doing so, you’ll be able to monitor the money that’s coming in and going out. When the money that’s going out exceeds the amount that’s coming in, you’ll need to decide if you should raise your rates or cut your expenses.
8. Attract funding
If you don’t have enough financial pull that could support your business’ expansion, you’ll need to look into contractor financing options. Make sure that you keep your financial records detailed and organized. Research on the best type of loan based on your current business needs.