Running a contracting business is competitive. From funding to bidding to executing to marketing your business, you need to constantly stay on top of your game. These nine tips are a starting point to ensure you are running your business as effectively as possible. Some are common sense, while others are straightforward. These tips include how to market your business, how to enhance your services and operations, and finally how to manage bid prioritization. The trick is identifying what is hindering your business and implementing the associated tips.
While there are several different ways to grow your contracting business, there are three general areas to focus in on. The first is how you market your company, including:
· Differentiating your company by creating a list of your firm’s distinguishing attributes
· Investing in marketing tools, and consider a marketing budget of 2 to 4 percent of your total revenue
· Asking for referrals each time clients are satisfied with your work, and feature them on your website or in a case study
· Joining relevant construction associations
The second area to focus in on is enhancing your services and operations, including:
· Improving your cash flow by asking for up-front deposits, longer repayment terms and accepting credit payments
· Getting licensed for extra credibility and for protecting your clients
· Becoming certified to further your competitive advantage, including becoming LEED (Leadership in Energy & Environmental Design) certified, a HERS (Home Energy Rating System) Rater, or certified by the Building Performance Institute
The final area to focus in on, and arguably the most important, is bid prioritization, including:
· Choosing the projects that are right for your firm by calculating the ROI (return on investment) for each project to determine profitability
· Running post-bid analyses on each submission to help your bid prioritization process
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