With construction projects on the rise for 2015, contractors could see a surge in opportunities. However, as many of these experienced workers know, the high can only last so long. During the time when demand is low and costs are high, construction industry contractors can feel blown away. Work is not always guaranteed, and contractors have to be able to survive by stretching their budget.
A solid budget starts with analysis. If you aren’t already keeping close tabs on your incoming and outgoing expenses, take the time now to get that business perspective. After you understand your financial flow, you can create a plan to hold you over during the slow seasons. At CCS Construction Staffing, we’ve helped hundreds of construction firms and independent contractors develop budgets and strategies that keep their business steady and strong. Here are a few tips our clients have found successful during any economy.
3 Budgeting Tips for Contractors
#1 Research Materials Costs
You’ve heard the old saying, time is money, and for contractors the adage couldn’t be truer. Contractors can save a great deal of money by taking the time to research options for purchasing materials. Some supplies you know you’ll go through quickly, so try to buy those materials in bulk. Buying in bulk reduces the cost per item. For equipment and tools, check out second-hand opportunities like auctions and online forums such as Ebay or Craig’s List. Often used equipment just one year old can be found at steep discounts.
#2 Outsource Workforce Services
Most contractors know that staffing firms can provide access to employees, but they can also provide administrative and payroll services. For example, at CCS Construction Staffing, our clients can save time and money by using our connection to highly trained temporary workers, hiring leadership and payroll opportunities. By taking these tasks off a contractor’s plate, you can focus on planning bids, networking with clients and increasing your business.
#3 Place a Bid That Reflects Your Quality
Many contractors, especially those starting out, tend to lowball their bids, in hopes of grabbing clients and making a reputation. However, if you bid too low, you won’t have the money you need to complete the project or start a new one. Place bids that reflect both your needs and the client’s needs to ensure the project goes well and your bottom line stays afloat. Remember to be open to negotiation.
Though you will face a lot of unexpected expenses while self-employed or owning a business, you can be prepared. Equipment and employment are two of the largest expenses for contractors, but those are also the two you stand the best chance of predicting. At CCS Construction Staffing, we’ve helped contractors large and small stay successful year round. And, since our focus is on your industry, we understand your needs. If you’re looking for opportunities to build a stronger business, give us a call!