It’s easy to get into the habit of “whatever works is best,” but we all know there are some areas where best practice really is best. When it comes to construction and building, general contractors have so many hard hats to wear, and there are some areas where you just can’t cut corners. So let’s talk about 3 best practices for the contractor business.
One particular area that general contractors will deal with regularly is that of client relations. It’s also one of those areas that it might be easy to slack on, but you want to keep a tight rope here. The best practice in client relations often sounds like the client is always right. But that’s not necessarily the case — especially in construction where building codes matter and people’s safety is at risk. The best client relations practice for contractors will be a little more hands on.
Maintain open communication and get ahead of any problems. Schedule updates at predetermined time intervals, so that there’s always an opportunity for questions and clarification. Weekly or bi-weekly (or whatever you and the client decide is reasonable) in person or phone conversations can ensure that miscommunication is minimal. You’ll also be able to manage the clients expectations and keep them reasonable. Ultimately, the best client relations is open communication.
Other areas to focus on best practices is quality. The quality of your service is really the most valuable asset you provide. This should be an area where best practice is standard practice. Best practice says you should use the highest-quality materials within your client’s budget and that you should complete each task with care and attention. So many general contractors end up doing shoddy work in the name of time crunches. No client should have to deal with that. So always strive for best practices when it comes to the quality of your work.
Over budget for time so that time deficits aren’t a factor for the quality of work you produce. Following best practices when it comes to your services will pay off in the long run as you build a reputation for reliably delivering high-quality products. People pay for quality.
And finally, overhead costs should be an area where you strive for best practices always. Why? This is the area that will make or break you in terms of business success. So many businesses fail because they don’t consider and budget properly for their everyday operating costs. Your budgeting records should be meticulous. Break down the cost of everything you do and everything you use for work — and we do mean EVERYTHING. From insurance to the electric bill for your office to pens you buy to sign contracts, you need to make sure each of these expenses is covered in your overhead. When you know your exact overhead, then your job costs and overhead markup will be more accurate, and you’ll be able to operate a successful business.
Best practice is just that, best practice. Make sure your business is meeting those best-practice standards, and we’ll make sure you’re offering the best contractor financing for customers. Partner with HFS Financial for contractor financing. It’s as quick and easy as our 60-second loan application. With HFS Financial, “You Dream It, We Finance It.”