If your contractor clients are ready to grow their businesses, they’ll need help. As an agent, you can plan an important role in connecting your clients with the resources available in the community. This will allow them to create a more efficient, organized and productive business.
With this in mind, here are five key referrals for professional relationships that you need to make to your clients to help them grow their business.
How your contractor clients manage their books is a critical factor to their success. If they’ve handled it in-house, that may have worked at their current scale. However, as they grow their business, the size and complexity of the accounting are also likely to grow. To manage this growth, they need an accountant or bookkeeper with a solid understanding of the complexities of the construction business. It may require paying a little more, but by investing in their accounting, they’ll have a business that is more financially stable and better able to function in the long-term.
Even if they’re not ready to bring in someone new, using a service like Cinium’s Project Accounting Service may be a good place to start. They get the benefits of an experienced project accountant, without paying any upfront costs. That way, their books are better managed, and they know that every project dollar is accounted for.
Your client’s ability to grow their business will be dependent on their liquidity, which may depend on the size of their bank line. That’s why, as they grow their business, they should make sure that they have a good relationship with their bank, and ideally with a personal banker.
If they are already working with a bank, encourage them to include the bank in their expansion planning. This can help provide them with a sense of how much credit they can access, and how much liquidity they’ll have available as they take on bigger projects.
If they’re planning to grow their business, encourage your clients to take the time to talk to their vendors. If the size of their orders is likely to go up, their vendors may be able to offer more favorable terms or discounts for early payment.
For contractors, bigger jobs mean bigger and more complex contracts. If they don’t already have one, encourage your clients to hire an attorney to review their contracts. It can make all the difference between success and failure. Make sure the attorney you recommend is experienced with the construction industry. Even though they may balk at the cost, if their attorney can help them to avoid unfavorable language, liens or liquidated damages, their service pays for itself.
5. Surety Bonding Agent
If your clients are planning to grow their business, they may need to expand their bonding lines to accommodate larger project budgets. Developing a relationship with a surety bond producer like Cinium that understands the construction industry, can provide bonds in the non-standard market, and can assess what bonding solutions are best for their business is critical.
If they are ready to grow, working with Cinium can help. Our Contractor Credit Program is designed to fully assess a contractor’s potential, both on the job site and in the back office.
Our team of construction experts can determine a bonding line that works for your client’s business, our Project Accounting Service can help them to better organize and manage their back office, and our Requisition Cash Advance service can help them to better manage their cash flow issues so that they have the funds they need to get the job done.
Looking to take advantage of Cinium’s Contractor Credit Program? Schedule a free consultation today, or call (855) 4-CINIUM.