10 Ways to Grow Your Contractor Business

Many people turn to the contracting industry because they want to be their own boss, instead of work for someone else. Contracting is a great way to earn a living while improving people’s lives and experiencing something different every day. Try these 10 tips to grow your contracting business and find success in the long term.

1. Join a Professional Association

By becoming a member of a professional association — for instance, Associated General Contractors of America or Associated Builders and Contractors, Inc. — you can network with peers who might later refer you or boost your core business skills. You’ll gain information you can use to grow your business and support network of peers who can help you with problems.

2. Decrease Callback Time

The longer you wait to make contact with a new client, the greater the odds that client has gone with another contractor who was available. If you’re not getting business calls on your personal phone, start forwarding them, then pick up and engage with leads. While it’s critical to return calls quickly for leads, it’s also essential to communicate with existing clients. Clients know when they aren’t important to you, and they can damage your reputation, which may negatively be impacting your income.

3. Do High-Quality Work

Ever notice how some contractors are always fully booked? If you want to be like them, make sure you’re giving every job your best effort and are proud of the work you are turning out. When you do high-quality work on every job, you’ll impress clients and get them to refer you more business or call you back for their next projects.

4. Hire the Right People

When you don’t trust the people you’ve hired, you’ll spend a lot of time micromanaging them. Vet potential workers carefully and hire people who are bright, driven, and trustworthy. You might feel like no one can do it the way you do it; however, this attitude will set you back. You need a crew you can rely on to work independently, so you can focus on running your business.

5. Delegate Tasks

The sooner you accept the fact that you won’t be able to do everything, the sooner you’ll take your business to the next level. Focus your attention on the tasks you must do to grow your business, while outsourcing the rest of the items on your to-do list to trustworthy people who can execute your vision.

6. Invest in Marketing

While word of mouth marketing is a driver of contractor referrals, that doesn’t mean you should rely on it exclusively. Not every one of your customers is going to refer you, even if you do a fabulous job. Invest in marketing to attract a new crop of leads and avoid the gap that can occur when you rely on referrals and run into a dry spell.

7. Advertise Locally

Advertise in local publications, leave business cards at hardware stores, and get your name out there in your community as well as online platforms, such as Houzz or Angie’s List. The more visible you are within your community, the more likely you are to get inquiries.

8. Specialize

One of the easiest ways to grow your business is through specialization in one or more niches. Let the market near you guide you in determining what to specialize in, from historical homes to modular construction. Then invest in the training you need to stand apart in your niche.

9. Find a Mentor

You’ve got contractor skills, but do you have the business skills you need to run a company? Find a mentor who understands your industry, your niche, and the business landscape near you. A mentor can help you improve your skills in areas where they are weak, walk you through problem-solving, and help you during the early stages of your contracting career.

10. Improve Your Financial Management

Don’t let a shortfall from a late payment threaten your business. Watch your finances and make sure you have enough cash flow to cover out-of-pocket expenses before starting any new jobs. Consider applying for a business line of credit or opening a business credit card, so you have another option if you wind up with a temporary cash flow shortage while waiting for a customer’s check. If you’re still having cash flow problems, it might be time to raise your rates.

Start implementing the techniques you aren’t using one at a time to grow your contractor business and achieve the goals you’ve set for yourself.