For many of your contractor clients, there is a point in the life of their business where they feel that they are ready to grow. In recent articles, we’ve discussed the questions that your contractor clients should ask themselves to determine if they’re ready to grow.
If they feel they’re ready, remember that the decision to grow their business is only the first step.
Here are some tips to get them started.
1. Internal Assessment
Before they can grow their business, they need to make sure that the foundations of their business are strong. To do this, they need to take the time to perform a thorough assessment of their business. This may entail a financial audit, a review of their business practices and a review of their job site practices.
For this to be successful, they also need to create an opportunity for their team members to speak their minds. They need to be able to ask questions and give their team room to point out potential weaknesses in their business, while also giving them the agency to offer suggestions for improvement.
As they talk to their team members, they should try to get an understanding of what is working and what isn’t working. Once they’ve done that, they can create a plan of action to improve it.
2. Improve Their Back Office
Once they understand where there’s room for improvement, it’s time for them to take steps to build their business. This may include improving their practices. Some of the easiest ways to do this may be to:
- Focus on creating an organized system for tracking paperwork.
- Ask every member of their team to create written processes and procedures for every aspect of their job. That way, if someone leaves, they don’t take their institutional knowledge with them.
- Create an online calendar to organize their appointments and client meetings.
- Schedule time during the week for strategic planning meetings with their stakeholders.
- Upgrade their software. There are many affordable solutions available that are easy to learn. Once they have a new system in place, they should also make sure that they and their team take the time to get trained.
Whatever improvements they choose to make, they need to do it deliberately and document everything as much as possible.
If their assessment determines that they’re lacking key team members, instead of hiring new staff members, it may be advisable to outsource. For example:
- Outsourcing their project accounting can help them to organize and streamline their project finances without needing to hire someone full time.
- Outsourcing payroll allows them to stay compliant with state and federal regulations and helps ensure that their team members are receiving the correct tax documentation.
4. Define Their Niche
Instead of trying to be all things to all people, encourage your clients to try to define their niche. While many contractors try to be a jack of all trades, it can actually be more profitable to identify where they can provide project owners with the best service and the greatest level of expertise.
This allows them to stand out from the competition. It will also allow them to charge more because project owners will be willing to pay a premium for their work if they can demonstrate that they’re the best in town.
This will also allow them to focus their marketing efforts to get the jobs they want.
5. Market Upwards
There’s an old saying in business, “don’t dress for the job you have, dress for the job you want.”
The same holds true for your contractor clients. As they start improving their business and determining their niche, they should start reaching out to the project owners and large general contractors that they’d like to work with. As an agent, you may be able to make recommendations or referrals. Even if the general contractors or project owners don’t have an immediate need for their particular skill set, chances are they will in the future. When your larger clients have your smaller clients on their radar, it’s a win for everyone.
6. Grow Their Business with Cinium
Working with Cinium can help. Even if they don’t need a surety bond, our Project Accounting Service can still work with them to help better organize and manage their back office, and our Discounted Payroll Service through ADP can provide them with the payroll support they need at a price they can afford.
Looking to take advantage of Cinium’s Contractor Credit Program? Schedule a free consultation today, or call (855) 4-CINIUM.