Starting a new business is thrilling, but the last thing you ever want to do is let your excitement get ahead of you. Being excited and wanting to rush through the planning steps could mean you end up launching a rickety business that needs damage control to be done from day one. Instead, you will want to ensure the bones of your business are strong and follow this guide:
Use the Best Practices Available Today
Before you focus on any contracting jobs or new hires, you will need to ensure that the skeleton of your business is strong and stable. This means using the best tools available today to help you keep track of finances, invoicing, customers, employees, contacts, and everything else your business will need to succeed.
A good option is to stick with the Cloud and to choose SaaS tools, meaning you pay a monthly subscription instead of paying a huge upfront license fee. This way, you can expand as necessary without needing to switch systems.
Join an Industry Association
The best way to promote yourself as a quality contractor is to join a swarm of others. Associations, like the Associated General Contractors, are perfect for helping you network, grow your business skills, help you improve your business, and of course, provide a seal of trust and authority to your potential customers.
Skip the Multiple Insurance Policies and Stick with One
You will need insurance to operate. It is non-negotiable, and not investing in satisfactory insurance to cover your entire operation is just begging for bankruptcy. In some states, you won’t even be able to acquire your business license without insurance already in hand.
Thankfully you don’t need to look through and sign up for the individual insurance policies that you will need, which can include:
- General Liability
- Professional Liability
- Worker’s Compensation
- Auto Insurance
- Tool Insurance
- Pollution Insurance
- And so much more
With so many options for you as a contractor to choose from, it can be hard to get it right, and that’s without even considering how difficult it will be to manage all these different policies and a thriving business.
Skip all of that. There is a simple solution to be amply covered without inviting in a migraine, and that solution is to opt for a contractor insurance package that covers everything you need to operate your business and can be customized to fit your needs.
Grow Your Contact List
You will want to grow both a potential client list and, more importantly, a business partner list. You need to know who to turn to for materials, for outsourcing jobs, and for anything else that needs doing. Working with the right people is going to seal the deal on whether the projects you work on are quality – or not. If your work is exceptional, but the plumber hired to complete the job didn’t care, and a leak happens that is on you as lead contractor.
Focus on Your Strengths
It is far better to stay small and keep to a small number of quality clients then it is to try to artificially expand. Focus on your strengths, grow a great reputation, and remember that a modest profit margin is the pinnacle of success. There is no need to artificially expand, especially when many medium-sized contracting businesses find that this does not mean an increase in sales.