The field of construction work is as broad as the human imagination; for every architect with a vision in their heads, there is a team of construction professionals who can bring it to life. As every contractor knows, this also means there are endless opportunities to expand business and earn additional income.
Contractors who want to increase the revenue of their small businesses have a lot of options; so many, in fact, that it can sometimes be difficult to know where to begin. Below are just a few tips and techniques to start increasing cash flow.
Get Licensed
Those in the construction field know that a license is not necessarily indicative of a contractor’s skill level. After all, there are many unlicensed individuals out there who provide quality work, just as there are some licensed contractors who do not. So why go through the hassle of getting licensed?
Simply put, getting licensed opens the door for bigger and more complex projects, and of course, more income. With the advent of review websites like Angie’s List, it is easier than ever for homeowners and businesses to weed through competing contractors and hire only those with the best ratings. A license can help a contractor stand out from the competition and earn higher rankings on these review sites.
Many of today’s potential clients also only are willing to work with licensed professionals. A lot of them view a license in the same way they do a high school diploma, in that it is often seen as a basic requirement that just promises work will be done safely and according to code.
Many states also require contractors to be licensed and can impose fines or even jail time on those who work without one. If you are ready to get licensed, the board of contractors in Virginia has many resources to help you pass your exam.
Offer a Specialized Service
If you or your one of your employees has a particular area of expertise—for instance, restoration skills for older structures—use it to make your business stand out. You can advertise your business as one of the few providers of this service; since people will have to come to you to get this service, you will have a lot of leeway in setting prices.
Advertise Your Business
You might be the best contractor in your area, but your business will never expand if no one knows you exist. Word of mouth can be a good place to start, but you should also consider taking out a few well-placed ads to help get your name out there.
Online reviews are also a great, low cost way to generate more business. After each job, make sure to ask your client to review their experience on a site like YellowPages or Angie’sList where your business is listed.
Take Care of Your Crew
Everyone knows the importance of maintaining their equipment, but sometimes managers forget to maintain their crews. Looking out for the welfare and morale of your workers will pay dividends; research has shown that people who enjoy their job and feel like a valued member of the team are more likely to show up on time and motivated.
Employees who feel like their company and manager cares about them are more willing do what it takes to support the company’s goals: they are more likely to arrive on time, put in extra hours, and generally strive harder to maintain high standards of work.
Taking care of your crew can be as simple as buying them meals or offering paid time off for things like doctor’s visits and childcare. Gestures like this let your employees know that you see them as more than expendable workers and that you recognize the value of their contributions to your business. And in the end, those small gestures will turn into more profitability.
