Top 10 Tips to Running a Successful Construction Business

Summary

In this video, a seasoned contractor shares ten valuable tips for newcomers to the trades industry. From the importance of answering your phone and responding quickly to quotes, to focusing on volume over high pricing and embracing social media for business growth, these insights offer a practical roadmap for success. Key takeaways include maintaining open communication, doing small jobs to build a reputation, treating employees well, and staying open to new ideas. The video emphasizes the importance of building trust, staying relevant, and leveraging modern tools to grow your business in the competitive contracting world.

Takeaways

• 😀 Answer your phone promptly to secure work. Clients often struggle to get in touch with contractors, so being available is crucial.
• 😀 Respond to quotes and estimates in a timely manner. Clients are waiting for your reply, so speed matters in keeping them engaged.
• 😀 Focus on volume over high pricing, especially when starting out. Filling your schedule with jobs helps you gain experience and stay busy.
• 😀 Don’t underestimate small jobs. They can lead to bigger opportunities as clients often return for more substantial projects.
• 😀 Stick to your quotes. Avoid asking for more money at the end of a job due to poor bidding. Learn from your mistakes instead.
• 😀 Prioritize clear and honest communication with your clients. Keeping them informed builds trust and results in repeat business.
• 😀 Be open to learning new techniques. Just because something worked in the past doesn’t mean it’s the best way to do it now.
• 😀 Hire competent and willing-to-learn people if you plan to grow your business. Treat them well and pay fairly to build a motivated team.
• 😀 Focus on building your brand, not just your business. A strong brand attracts loyal clients, even if you keep your operation small.
• 😀 Leverage social media to market your work. Posting photos and videos allows you to reach the right audience and build your reputation.

Q & A

What is one of the most important things a new contractor can do to secure work?

Answer your phone. Being responsive to potential clients by answering calls and being present is crucial for securing work. Many clients report not being able to get a response from contractors, so being the one who follows up can win you the job.

How should contractors handle providing quotes or bids to clients?

Contractors should provide quotes, bids, or estimates in a timely manner. Even though contractors may have multiple projects going on, it's important to remember that the client is only focused on their job and is waiting for your response.

What approach can contractors take to remain competitive while keeping their schedule full?

Contractors can focus on volume rather than aiming for the highest prices. By offering lower rates and staying busy with multiple jobs, they can hone their skills and remain relevant in the market, which is especially important when starting out.

Why should new contractors not dismiss small jobs?

Small jobs, such as replacing a door or fixing a faucet, can lead to bigger opportunities. These jobs help build connections with clients who may later need larger projects. Providing excellent service at a fair rate ensures that clients remember you for bigger work in the future.

What advice does the speaker give about dealing with change orders or mistakes in bids?

Contractors should never go back to the client and ask for more money due to errors in the original bid. Clients should only pay extra for changes made during the project, not for mistakes made during the bidding process. Transparency and honesty are key.

How important is communication between contractors and clients?

Communication is crucial. Contractors should keep clients informed about any issues or changes during the project. Open and honest communication helps build trust and ensures clients feel valued and respected throughout the process.

What should contractors keep in mind about innovation and learning from others?

Contractors should be open to new ideas and methods, even if they’ve learned a traditional way of doing things. Social media platforms like Instagram and YouTube offer opportunities to learn from others in the trade and share knowledge.

What is the difference between growing a business and growing a brand, according to the speaker?

The speaker prefers to grow a brand rather than a large business. While others may focus on expanding their business and workforce, the speaker aims to maintain a boutique-style service, focusing on a specific standard of work that attracts clients willing to pay a premium.

What advice is given for hiring people when scaling a business?

When scaling a business, it’s important to hire competent people who are willing to learn and work hard, not necessarily those with the most experience. Contractors must also treat their employees well, pay them appropriately, and put their best interest first.

Why is social media important for contractors starting their business?

Social media is a powerful tool for contractors to showcase their work and connect with potential clients. By posting content, contractors can control the narrative and reach the right audience through algorithms, offering a low-cost and effective way to grow their business.