How To Run A Successful Contracting Business

October 26th, 2017 | by James B
How To Run A Successful Contracting Business

One of the steadiest industries and one that is potentially very lucrative is contracting. With a bit of smart maneuvering and a lot of hard work, a contracting business can grow rapidly and soon turn into a company with a number of employees and customers who will pay for good work. It is also a very competitive industry and in order to succeed, you really need to do a lot of things the right way. Today, we will be looking at what you need to do in order to succeed as a contractor.

Get your papers in order

Before anything else, you have to remember that the days of cowboy contractors are behind us. People want to work only with licensed contractors who have registered companies and who will always be above board. In order to have all your papers in order, you will have to check the requirements in your part of the world. The next step is to assemble all the paperwork and take out a contractors license. You also have to register your company for tax purposes and take care of all the other requirements. You might also want to register with the local contractors’ associations as this will also help you attract customers.

Hire the right people

One of the main jobs of a contractor is to manage the different people who work for them and make sure that everyone is doing their jobs. It may seem like an easy task, but in reality, finding the right people and motivating them the right way can be difficult. You will want to hire people with experience, but you will soon find out that sometimes inexperienced employees can be a boon for your company, willing to learn and work hard. These are the people who will represent your contracting business and you cannot afford to hire subpar professionals.

Do smart marketing

Let’s be realistic here – simply starting a company is rarely enough in the competitive industry such as contracting. You need to make sure that potential customers find you and this is where marketing comes in. While contracting is still one of those industries where traditional marketing can be very effective (local media ads, for example), you really have to embrace the new technologies and start doing online marketing. A bit of social media, some content marketing, and smartly placed online mentions can do wonders for your business. Also, you should always monitor review websites and encourage your satisfied customers to write something nice about your company.

Be careful about customer service

Word of mouth is everything in the contracting business and satisfied customers will breed new customers. This is why you always have to make sure that the people who hired you received the best possible service for their money. This will go beyond delivering on the quote. You will want to keep them in the loop, invite them to the site and explain every little thing that might deviate from the initial plan. When it comes to contracts, remember to stay flexible and to never promise something that you cannot do.

Get into subcontracting

One of the smartest things for new contractors is to take on some subcontracting work. In other words, you will partner up with more established companies and offer them your expert services for parts of their contracts. This way, you not only make money on contracts that would be out of your reach, but you also build a name for yourself. You build a name for yourself in front of both professionals in your industry and the potential customers. It can actually be one of the best things you can do for your contracting business.