In our previous article, we examined some of the practical questions that your contractor clients should ask themselves as they consider growing their business.
That’s because their business isn’t just a place they go to collect a paycheck. It’s an extension of themselves. That’s why it’s also important that they examine the personal factors that can affect their business and its ability to grow.
1. Do They Have the Time?
With their current business, it’s a good idea that they take a look at how much time they have during the week and how they’re using it. Assuming that they could double the number or size of the projects they’re working on, would they have double the time to manage the books, work with clients and still manage their job sites?
If they’re uncertain of the answer, it may mean that they’ll want to explore options to outsource tasks like project accounting or payroll management, so that they can focus on growing their business.
2. Do They Have the Staff They Need?
One of the biggest mistakes that contractors make is that they don’t invest in their back office. This isn’t just about space and office supplies. This is about having the staff they need.
For contractors that means:
- Hiring a bookkeeper or accountant who knows more about how to manage the accounts better than they do.
- Hiring team leaders who can successfully manage projects from beginning to end.
- Working with a marketer or an agency that knows how to promote their business in a way that brings in new clients.
- Hiring an office manager or office assistant who can anticipate needs and keep their business running efficiently.
Hiring these people may cost more, but they shouldn’t think about staffing as money that they’re spending. Instead, they should think of it as investing in the future of their business. As an agent, you can help them grow their business by recommending the references they need.
3. Do They Have a Support System
For contractors seeking to grow their business, it’s important to have a support system in place with partners that you can trust, and who understand the needs of their business.
For example, are they working with a surety bond provider that understands the needs of their business? Do they have a project accountant or accounting team that they can trust and who understands construction?
This becomes important because this support system can provide valuable guidance along the way that can help them improve how they run your business. It can also provide solutions that will allow them to scale their business up responsibly.
4. Are They Ready to Run a Bigger Business?
It’s important to remember that as your clients grow their business, it will require that they take more responsibility for the business part of the business.
This can lead to them spending more time meeting with clients, promoting and networking and less time on the job site.
As an agent, you can help them assess whether they’re truly ready to grow, or whether they should maintain their present size.
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.