In our previous article, we examined some of the practical questions that contractors should ask themselves as they consider growing their business.
This is because your business isn’t just a place you go to collect a paycheck. It’s an extension of you and everyone who works with you. That’s why it’s also important to examine the personal factors that can affect your business and its ability to grow.
1. Do You Have the Time?
With your current business, it’s a good idea to take a look at how much time you have during the week and how you’re using it? Assume that you could double the number or size of the projects you’re working on. Would you have double the time to manage the books, work with clients and still manage your job site?
If you’re uncertain of the answer, it may mean that you’ll want to explore options to outsource tasks like project accounting or payroll management, so that you can focus on growing your business.
2. Do You Have the Staff You Need?
One of the biggest mistakes that contractors make is that they don’t invest in their back office. This isn’t just about space and office supplies. This is about having the staff you need.
For contractors that means:
- Hiring a bookkeeper or accountant who knows more about how to manage the accounts better than you do.
- Hiring team leaders who can successfully manage projects from beginning to end.
- Working with a marketer or an agency that knows how to promote your business in a way that brings in new clients.
- Hiring an office manager or office assistant who can anticipate needs and keep your business running efficiently.
Hiring these people may cost more, but don’t think about staffing as money that you’re spending. Think of it as money that you’re investing in the future of your business.
3. Is Your Company Culture Aligned Toward Growth
Growing a business can be rewarding. But it also requires extra work and a willingness to stretch yourself, your team members and even your family. Before you start to grow your business, it’s a good idea to make sure that everyone on the team understands the goals, knows how they can contribute, and is ready to step in when needed.
4. Do You Have a Support System
For contractors seeking to grow their business, it’s important to have a support system in place with partners that you can trust, and who understand the needs of your business.
For example, are you working with a surety bond provider that understands the needs of your business? Does your insurance agent know how to scale up your coverage? Do you have a project accountant or accounting team that you trust and who understands construction?
This becomes important because this support system can provide valuable guidance along the way that can help you improve how you run your business, and provide solutions that allow you to scale your business up responsibly.
5. Are You Ready to Run a Bigger Business?
It’s important to remember that the more you grow your business, the more responsibility you need to take for the business part of the business.
This can lead to you spending more time meeting with clients, promoting and networking and less time on the job site.
If you’re ready to grow, working with Ox Bonding can help. Our Contractor Credit Program is designed to fully assess a contractor’s potential, both on the job site and in the back office.
Our team of construction experts can determine a bonding line that works for your business, our Project Accounting Service can help you to better organize and manage your back office, and our Requisition Cash Advance service can help you to better manage your cash flow issues so that you have the funds you need to get the job done.
Ready to put Ox Bonding’s experience to work for you? Download an enrollment application or call us today at (877) 55-THE-OX.