As an independent contractor you have a number of factors that need to be balanced in order to develop and maintain a successful business. You want your business to be able to support you and your family. After all, that is why you decided to start a company in the first place.
First and foremost, you need to deliver quality work to your current customers. That paves the way for getting return work as well as word-of-mouth referrals to friends and neighbors. This is a great way to obtain new clients, and you should always strive to go the extra mile to ensure customer satisfaction.
You also need to generate a steady flow of new work. While return customers are great, the odds of supporting your business without a constant influx of new clients are very slim. This part of your overall business strategy can build on referrals from former customers and needs to also involve aggressive advertising and follow-up with prospective clients. Ideally, you will always have some new customers in the pipeline.
In addition to building and maintaining a stable of customers, you also need to look at ways that your business can save money while still delivering quality work and service. This aspect of increasing profitability cannot be overlooked, as small savings can accumulate and end up being a major ingredient in making your business a financial success.
We are going to take look at four companies that can help you achieve financial success by helping you reduce costs.
A proven way to generate more business for your contracting company is to offer your customers the option of using contractor financing for their home improvement projects. The ability of your company to help its clients obtain financing at reasonable rates can go a long way toward building your business. You want to find the right financial institution to work with that understands the needs of the contractor.
Hearth is a financial company that definitely fits the bill by helping you reduce your cost when offering contractor financing to your clients. While many financial institutions will work with contractors to provide financing for their customers, Hearth saves you money by not charging a per loan fee. A single monthly charge gives your customers access to as many loans as needed.
Hearth will set you up with a branded financing page where your customers can apply for a loan. You will be able to follow the process as it moves along, and when your client obtains the financing, you can go ahead and get the job started. By offering financing and getting one more customer per year, your alliance with Hearth will pay for itself.
2. United Rentals
Construction equipment is expensive, and there may be situations where you need a specific vehicle or device to get a single job done. United Rentals can help by renting you the machinery that you need for the length of time you need it. According to the website SeekingAlpha, they are the largest equipment rental company in the world with over 800 locations in North America.
United Rentals breaks up their equipment offerings into two groups. The general rental section concentrates on construction, aerial, industrial, and homeowner equipment. They also have a trench, power, and pump segment that rents specialty equipment.
Renting equipment that you might not need in your everyday contracting can cut costs while at the same time opening up new avenues of business. United Rentals has every type of construction machinery you would ever need, and in addition to rentals. they sell used equipment, which is another way you can save some money. Why buy a new piece of equipment when you can get one that’s broken in already and still in good shape?
3. MidAtlantic Employers’ Association
MidAtlantic Employers’ Association (MEA) is a human resource outsourcing company that specializes in various industries, one of which is construction companies. They can handle many of your HR needs, allowing you to focus more fully on running your business.
Small to mid-size companies are often challenged when confronted with HR issues. Lacking a dedicated human resource department means that the work has to be done piecemeal by managers and company executives. This can take up valuable time, and is in most cases, outside their areas of expertise.
MEA can help with a variety of your company’s HR requirements, including:
Recruiting and talent acquisition – MEA handles the recruiting process from end to end. They advertise, search, and identify candidates that will fill the needs of your company.
Management of employee benefits – MEA will help your company by providing plans that cover your employees’ medical, dental, and other insurance needs.
Compensation – Lack of a good compensation package can hinder your ability to attract the quality of worker that you desire. MEA will work with your company to come up with a compensation strategy tailored to your company and its goals.
If your contracting business does any painting, then Sherwin-Williams can save you money with their ProDiscounts program. It offers lower prices on paint and painting supplies for any size project. The program also offers steeper discounts on bulk purchases that will help control costs on your larger jobs.
The company states that they offer the discounts to make it easier for you to do business with them, and the savings you accrue will make it easier for your customers to do business with you.
Sherwin-Williams is just one example of retailers offering discounts that contractors can use to their advantage. It is worth your time to check out all of the local materials and equipment providers to determine if they offer a contractor discount. Materials are something you need on every job, and even small savings can add up to real money over the course of a year.
You can minimize your costs as a contractor by taking advantage of the companies listed above, and others like them. They will allow you to add to your bottom line and offer your customers better deals.
Was this article helpful and informative? Leave us a comment with your thoughts in the section below.