Business Expansion Tips for Contractors Part 1
Whether you are new to the construction industry or have worked in the field for years, you may be well aware of the challenges of growing a profitable contracting business. Our Jacksonville construction attorneys know that some opportunities may come easily but with others, you may experience opposition. This two-part article will give you some tips to help you grow your business.
Join an Industry Association
When operating a small business, it is beneficial to link up with other like-minded professionals. Trade associations such as the Associated General Contractors, the National Roofing Contractors Association, and others, provide long-term benefits to contractors. Some may think that these memberships are a waste of time and money, but they actually provide contractors with a plethora of opportunities and benefits such as:
- Moral support
- Technical support
- Product recommendations
- Enhanced credibility with customers
- Educational and professional development
- Group purchasing which translates to cost savings
Protect Your Cash Flow
A lack of cash flow has been a major reason for contractor insolvency. If you want your business to grow, you must plan ahead and manage your cash flow. Cash flow problems are the bane of contractors and can be caused by a number of factors including nonpayment for projects and paying suppliers and subcontractors before being paid by clients. Rapid growth can even cause cash flow issues because a contractor may hire additional workers to complete a large project, but may not be able to cover their wages until they receive payment from the client.
Having a cash flow strategy will keep your business growing. Our Jacksonville construction attorneys recommend strategies such as proper project planning, boosting cash flow reserves, and strengthening your borrowing capacity. Head over to part two to read about investing in your business, hiring the right people, and paying attention to emerging trends.
If you would like to speak with one of our Jacksonville construction attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.