Without residential contractors, many homeowners would have very uncomfortable homes to live in. Residential contractors Success are what keep homes in balance and life’s necessities (like water, electricity, and filtered air) running smoothly. Although residential contractors are essential for well-functioning homes, finding and keeping work aren’t always easy for a contractor business. Whether you are meeting struggle in your contracting business, or you are hoping to expand and aren’t sure which steps to take next, view our residential contractor success guide below for ideas.
First, Perform a Complete Analysis
Before learning what you can do to be more successful, you need to first analyze your own business practices. Which areas need improvement, and which are thriving? What are your biggest needs, and what are your biggest blocks to continued growth? How are the business’ finances, and what is your employee turnover rate? Once you have outlined these, then you will have a preliminary list of goals to aim for and understand which processes to tweak.
Second, Expand Your Network
Most businesses can’t scale without help and guidance from the outside. Building a network of others in your industry, market leaders, vendors, and other resources is one of the best actions you can do to help your business scale. You won’t be able to do everything yourself, which is why it’s imperative to build relationships now that you can turn to when you’re ready to grow your business. Not only can you turn to your network for tips on how to succeed in residential contracting, but you can also use your network for:
- Understanding industry best practices
- Learning hiring tips
- Building vendor relationships
- Business partnerships
- Contract writing tips
- Staying up-to-date on the latest products and technology
SGI is a great place to find your network partners and start building the foundation for the future growth of your business. Not only will you meet peers in your industry, but you can find an experienced mentor and learn from top industry leaders on what helped them succeed as well. These relationships, along with continuing education resources and meetings, are the building blocks for every business wanting to scale.
Third, Improve Your Systems
Once you have identified where to make improvements in your business and gathered resources from your network of industry professionals, it’s time to put new systems into place. There are online tools to help business owners with bookkeeping, invoicing, scheduling, training, and more. Your network can even provide you with their favorite programs to help you choose the best one for your business.
One of the most important parts of this process is building a company culture that is teachable and repeatable. When you teach a system to one of your managers, they should be able to follow it and teach it to someone else. You want to make sure the systems are easy enough to execute so that you can trust everyone is getting the job done just as well as, or better than, you could. Every business wanting to scale must organize systems for every part of their business to keep everything organized and flowing well. When something goes awry, management can refer to where in the system the process broke down and improve upon that area for next time. With systems in place, unfulfillment in orders and services will occur less often, and deliveries will be kept on time.
Fourth, Grow Your Funding and Hire More Employees
As you continue to grow, you will need more resources like trucks, equipment, and storage to accommodate the demands of your incoming business. Financing these items will become important, and your contractor network is the first place you can ask for references. Your mentor may have used a particular bank that they loved, or your contractor friend may know a great place to find deals on equipment. Utilizing your network means you don’t have to rely on hours of research or guesswork when choosing who to partner with in your growth.
Your hiring process will also need to ramp up for the next season of growth. If you know what your turnover rate is and know how many jobs you have lined up for the next few months or year, then you know how many people you need to hire in the next year to keep up with demands. Since it’s more cost-effective to keep an employee than hire and train a new one, it’s a good idea to make note of how you can decrease your turnover rate and incentivize employees to stay with you long term. Following these few tips will help you build a strong foundation for your scaling residential contracting business.