Key Takeaways
- Bid strategically: Start slightly higher than you think you need to — it builds in a buffer for unexpected costs and teaches you where the market sits.
- Know your numbers: Learn to read P&L statements, set a startup budget, and prepare for slow periods before they hit.
- Price for value, not cost: Reliability and quality command a premium over the lowest bid.
- Streamline estimating: Efficient estimating software saves hours and reduces costly pricing errors as you grow.
- Market consistently: A professional online presence combined with word-of-mouth referrals drives sustainable, compounding growth.
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.
Conclusion
The contracting business is always evolving. Stay open to learning new skills, both in your trade and in business management. Continuously analyze and reassess your operations to ensure you’re on the right track. As you grow, you may need to invest in bigger tools or hire employees. Take these steps gradually and only when your business can support them.
Frequently Asked Questions
How do I know if my bid price is right?
Run early bids past experienced tradespeople in your area until you develop a feel for the market. Track your win rate — if you’re winning every job, you may be leaving money on the table. If you’re losing most bids, you may be too high on labor or overhead. Aim for a win rate that keeps you consistently busy without working at a loss.
What is cost-plus pricing for contractors?
Cost-plus pricing means you charge your actual direct costs plus a fixed margin on top. It’s lower-risk than fixed-price bidding because material price increases are passed through to the client. It works well for complex, variable-scope projects where your final costs are hard to predict upfront.
Can estimating software help me scale?
Yes. Manual spreadsheets introduce errors and slow you down as your project volume grows. Software like VoltPro lets you build estimates from your actual material costs, apply consistent markup, and generate professional PDFs in minutes — not hours. That time savings compounds as your business grows.