Any good business owner is always on the hunt for ways to make their company more profitable. Contracting companies are no exception. You’re already being smart about your expenses and you’re working full days, so extending your work days just isn’t in the cards. Now it’s time to work smarter, not harder. Follow these tips for three ways contractors can become more profitable.
It’s no secret that bidding on contracting jobs is an important part of your business. Your bid not only determines whether you get the job, but also if you make a profit. If you go too high, you could lose out to someone who bid less. If you bid too low, you can get the job, but run the risk of losing out on profits.
Start by limiting the amount of time you put into a bid. That may sound counterintuitive, but think about it. If you spend half of your work week formulating a bid that you don’t get, you just lost money.
Instead, evaluate the likelihood of you actually winning that bid. If the project isn’t exactly in your wheelhouse or it’s simply not interesting to you, skip it. Focus on the projects where you know that you and your team can knock it out of the park.
Happy Crew, the More They Do
Your team plays a huge part in the success of your business. When they’re happy and satisfied in their work, they’ll do better work and put out a better product. Here are a few easy ways to bring more satisfaction to your crew.
A great start is to invest in your team. Is there a training program that would double the number of employees who specialize in a certain skill? Send them! This small investment can increase your company’s ability to meet the needs of your clients.
Provide time off, with pay, for family-related reasons. Sometimes they’ll be the only one who can take a relative to an appointment or care for a sick child. Offer that flexibility and they’ll give you everything they’ve got on the job site.
Another way you can increase your profitability is by steering clear of overtime when possible. Studies have shown that productivity of employees can actually decrease over the course of a 50 or 60-hour work week. By that point your team is spent. Save money and ensure top-quality work by avoiding overtime pay.
All of these ideas can contribute to a happier crew. And we all know a happy crew equates to higher productivity and profitability.
Tools are a mainstay on a job site. But have you ever wondered how much money is spent on replacing them? When you and your team take good care of tools and maintain them properly, they’ll last longer and reduce the money spent replacing or repairing them. Be sure to take time to dust off or clean them after each use, and look over cords to ensure they’re not faulty. A few extra minutes at the end of the work day can keep tools in great condition, reduce your expenses and increase profitability.
You’re armed with three ways contractors can become more profitable. Now, arm your clients with the best contractor financing for customers. Let HFS Financial connect your clients with the perfect loan for them. With our easy, 60-second inquiry, they’ll be well on their way to financing the perfect project with your company. Give us a call at 1-800-254-9560. “You Dream It, We Finance It.”