Starting and running a general contractor business can be rewarding. But it does come with its challenges. However, there are many ways you can build and run a successful general contractor business.
Additionally, If you are thinking of starting a general contractor business, consider writing a business plan. It can help you discover your goals, target market, services, and financial projections. A business plan will help you research most areas before you get started. It can help keep you focused and guide you while you are growing your business. It will also help you through each stage of your business.
If you need a loan for your company or investors, you may be required to provide a business plan. There are many examples online of different types of business plans. The SBA offers a business plan tool to help you write your plans and they also offer examples of different plans for a product or service. Think about using these free resources and research best practices.
Here are 12 tips that can help you run your business:
1. Obtain Necessary Licenses and Certifications
It is vital for your business’s success to comply with all local, state, and federal regulations. That must be non-negotiable for your business. This protects your business from fines but also builds trust with your clients. Furthermore, you can open yourself up to lawsuits when you do not get licensed.
Research your state and location to make sure you know your requirements and laws too.
Also, by getting the proper licensing and permits, you will build your good reputation. Many things that can go wrong with a job. Ensure anyone you hire is properly licensed as well. You could be held accountable if not. Also, you may have to pay for the repairs and rebuilding out of your pocket if a subcontractor messes up.
2. Build a Strong Network of Subcontractors and Suppliers
Your subcontractors and suppliers will help your business grow. Also, building strong relationships with great partners will help you complete your projects on time and within budget.
As stated above, ensure your subcontractors are properly licensed. Hiring a friend who can do electrical work may cause you problems down the line. Hire great people to work for you too. Make sure they are skilled, licensed, and represent your company well.
3. Invest in Quality Tools and Equipment
Using high-quality tools and equipment can make a difference in your efficiency and the quality of your work. At first, this may be pricey. However, by determining what items you need to be successful at the beginning, you will save money. Furthermore, consider renting high value items until your business picks up.
Need an Affordable Mobile Time Tracking App for Your Employees?
4. Implement Good Project Management Practices
How do you keep your projects on schedule and within budget? Use a good project management software, set clear milestones, and communicate with your team to ensure everyone is on the same page. Additionally, you can stay focused when you are organized.
Also, think about processes you should develop to perform good quality work. Think about what measurements or steps should be written down as a process to ensure all workers follow the required guidelines. This helps with new hires too. If you have a guidebook on regular processes you can give that to new hires on day one of starting work.
5. Prioritize Safety at your General Contractor Business
Safety should always be a top priority on your job sites. Applying strict safety protocols protects your workers and reduces the risk of costly accidents. Regular training and safety audits are essential to a safe working environment. For workers to perform safely, they need to know the hazards and risks on the job site. Safety talks, even a few minutes before the job starts, can help. Safety comes from the top. When you take safety seriously, your workers will too.
6. Develop a Website and Social Media Profiles
A professional website and active social media profiles can help you. Also, it is free advertising. Your online presence is often the first impression potential clients will have of your business. Update your sites often. Put photos, testimonials, and blog posts on your social media accounts and website to attract new clients.
7. Focus on Customer Satisfaction
When your clients are happy, they tell everyone. Then, your business runs on repeat business and referrals. By delivering high quality work and being open to the customer’s needs, you can achieve that. If they have any issues, address them promptly.
Invest in training for any of your workers who meet with potential and current clients. They should always be professional, maintain a good and clean image, and build trust with clients.
8. Manage Your Finances
Managing your finances is critical to the success of your business. Track your expenses, manage your cash flow, and create a budget for each project. Staying on top of your finances ensures that you remain profitable and can handle unexpected challenges.
9. Research Industry Trends
New tools, software, devices, and more can help you become needed in your area.
The construction industry is constantly evolving. Basic research is helpful to stay ahead. Being informed about new trends and best practices can give you a competitive edge. Attend industry conferences, participate in workshops, and subscribe to trade publications.
10. Offer Competitive Pricing and High Quality
Great quality will help you get more business. Also, setting the right price for your business is crucial. Research your competitors, understand your costs, and price your services well.
Be careful when analyzing your pricing strategy. You want to be able to offer competitive rates without sacrificing quality.
11. Build a Strong Reputation
Your reputation is everything in the construction industry. A strong reputation will bring in more clients and allow you to command higher prices. Focus on delivering quality work, maintaining integrity, and building great relationships.
12. Implement Good Systems and Processes
Using a construction time clock app like ezClocker will allow you to create work schedules for your employees. You can also assign employees to a specific worksite. Also, your employees can clock in and out from anywhere. It also offers GPS verification so you can ensure they are at the job site when they clock in and out. Your staff can view their schedules on their phones or computer whenever changes are made.
Case Study Example
General contractor businesses use tools like ezClocker to streamline operations, improve compliance with labor laws, and reduce paperwork. Accurate timekeeping can prevent misunderstandings with your employees and clients. It can also help you make informed decisions about staffing and pricing future jobs.
For example, Daniel Alvizo owns Daniel’s Tile in Denver, Colorado. When Daniel started his business, he struggled to make a decent profit. Now, his business is thriving. With the help of ezClocker, he was able to switch from paying his workers by the day to paying by the hour. He knows what time his employees are arriving at work even when he’s not on site. “When you do construction there are a lot of changes every day – customers, materials, things like that,” Daniel says. “So at night it’s really nice when you’re already in bed and a customer cancels, you can change everything in less than one minute. You don’t have to call your employees. You just put it in the app, and in the morning when they wake up they see it.”
Final Thoughts
In conclusion, be mindful of common pitfalls such as poor financial management and neglecting relationships and safety protocols. Avoiding these mistakes will help you build a successful business.
Finally, using tools like ezClocker can help you with your general contractor business and improve efficiency. ezClocker can track your team’s hours, manage projects, and stay on top of deadlines. By investing in the right tools and focusing on your finances, quality of work, and customer relations, you can have a successful general contract business.
