Useful Tips for Contractors

1. Don't buy expensive equipment if you are only going to use it once in awhile... rent it.
2. Don't over extend your credit with the hope that on the next job you will catch up. That's called working on cash flow. It is one of the biggest reasons for going broke.
3. Make sure you keep in contact with your customers and keep them informed of your progress; good customer relations are important.
4. Give yourself a time schedule on each job an try to stick it. Make sure your subcontractors are aware of your schedule.
5. Don't forget to put your sign and phone number on your truck...inexpensive advertising.
6. Don't be afraid to hire inexperienced people if you can train them. You are pay less wages and in many cases, get a good employee.
7. When considering office space, make sure there is easy access and lots of parking; construction offices do not have to be on a busy street.
8. Get extra wallet size license certificate. You can order them from the state for a small fee. This will enable your key employee to show proof of license when pulling permits, etc.
9. Keep a very accurate check book balance. If you bounce a check for a subcontractor or material supplier, you will loose their much needed confidence in your company.
10. Make sure you know who you are dealing with, who is authorized to approve contracts, plans, etc.
11. Don't go overboard in your office furnishings...there are many good used buys.
12. In choosing your company name, make sure it's not vague. the company name should say what you do. For example: A.B.C. Refrigeration, rather than, A.B.C Enterprises.
13. Don't expand your business too soon. Make sure you are financially able first. Get advice from your accountant.
14. When buying trucks, look around for utility company used fleet sales.
15. Don't ignore customer complaints; the sooner you take care for them, the better for all concerened.
16. Hire an answering service... very important that your customers calling on your ads are able to reach you. A phone not answered will create a lack of confidence in the caller.
17. Keep your appointments and be on time; there is nothing worse than being late or not showing up.
18. Don't let the customer bully you. Remember, you are the expert.
19. Don't give away extras on the job. It doesn't take many extra to use up your profit.
20. Comply with all safety regulations. You or your employees getting hurt on the job could create costly problems.
21. Construction is among the most dangerous occupations, the need for proper insurance is important.
Remark:
Everyone wants to succeed, however, wanting is not enough. You must know what to do, how to do it, and, most important, how to apply all the knowledge you gain to your business.

Persistence is the key to most people's failure or success, but if you don't have the basic knowledge to start with, the probability of your success is greatly reduced.