Scaling Your Contracting Business: 5 Key Strategies for Success (Part 2)

In our previous article, we laid the groundwork for launching your contracting business. We covered the essential first steps: defining your specialization, choosing a business name, handling legal requirements and insurance, setting up your finances, and building a strong network. 

Now that you've established these fundamentals, it's time to focus on strategies that will help your business thrive and grow. In this second installment, we'll dive into five key areas that can make the difference between simply staying afloat and beating the competition. Whether you're just starting out or looking to take your existing business to the next level, these insights will help you build a more profitable, efficient, and sustainable contracting company. Let's explore the critical skills and strategies that will set you apart in the industry and pave the way for long-term success.

#1 - Learn the art of bidding

Bidding is a skill you'll refine over time. Start by running your bids past experienced tradespeople in your industry. A good rule of thumb is to bid slightly higher than you think you should - this gives you a buffer for unexpected costs and the opportunity to come in under budget when possible. Be prepared to learn from both won and lost bids. As you gain experience, you'll better understand your costs and the market rates in your area.

#2 - Keep your finances organized

Stay on top of your books or hire a good bookkeeper or CPA. Understanding your financial position is crucial for making informed business decisions. Learn to read balance sheets and P&L statements. Set a startup budget. Be prepared for the possibility of slow periods, especially when you first go full-time.

#3 - Price your services wisely

Determine competitive yet profitable rates for your work. If your market allows, consider a cost-plus pricing model, which can lower your risk. Don't be the cheapest option - focus on providing value and charge a fair rate for your market. This approach will keep you busy and allow for sustainable growth. Remember, the lowest price isn't always the most attractive to clients - reliability, quality, and professionalism often command a premium.

#4 - Streamline your estimating process

Implementing an efficient system for creating estimates can give you a significant edge in winning jobs and managing your time effectively. Quick, accurate estimates can set you apart from competitors and save valuable hours that you can dedicate to billable work. Consider using estimating software like VoltPro, which can help you create professional estimates quickly, track material costs, and present a polished image to potential clients. A streamlined estimating process not only saves time but also reduces errors, helping you price jobs more accurately and protect your profit margins.

#5 - Market your services

Develop a simple, professional website that showcases your services, past projects, and contact information. Platforms like Wix or Squarespace make it easy to create a polished site without extensive web design knowledge. Print simple business cards to hand out when you get the chance. Remember, in the contracting world, word-of-mouth referrals are incredibly powerful. Encourage satisfied customers to refer you to their friends and family. Consistently delivering quality work and excellent customer service is your best long-term marketing strategy.