Throughout 2017 we told the tale of two contractors on our blog. Rich, the forward thinking contractor who embraces process and technology, and Dick, the contractor who refuses to adapt or try anything new with his business. If you want your contracting business to take the next step in 2018, it’s time to make a resolution that you’re going to be Rich…not Dick. This post will walk you through some of the key points you’ll need to remember to keep that resolution throughout the year.
If you missed the introduction to these two characters the first time around, here’s the recap:
Successful Contractors Stick to Processes
It’s 2018 and homeowners have access to more information than ever before. They can compare reviews on you and your competitors in a matter of minutes, so when you get a call or an email you better deliver a top notch experience. Having processes in place ensures that every homeowner you interact with receives that top notch experience. Contractors like Rich know the importance of processes for:
- Providing quick, professional looking quotes. If you want to be like Rich, you’ll have a big advantage over your competitors using a tool like JobFLEX which allows contractors to develop and email professional looking PDFs right from the jobsite.
- Payment terms. Including consistent payment terms on quotes helps ensure that your customers pay on time and keeps your cash flow in good shape.
- Quick invoicing. Your business will never make the next step if you’re not on top of invoicing. Sure you can use a free invoice template, but having processes and tools (like JobFLEX) to help you get invoices out as soon as a job is complete will make your business run much more smoothly in 2018 and beyond.
Read more on processes here.
Meet Customer Expectations
As mentioned above, customers have access to more information than ever before. Between word of mouth and online reviews, providing underwhelming service can sink your business quickly. In 2018, it’s important to be the contractor homeowners want. In this case, homeowners want someone who’s safe to hire, like Rich. The chart below details some very clear differences between the type of contractor homeowners want and one who will likely scare off business.
See Your Future, Be Your Future
2018 needs to be the year you start thinking about the end game for your business. If you don’t plan for the future you run the risk of running in place. If you want to be like Rich you need to start figuring your long term plans for the business. When do you want to retire? Do you want to sell the business to an employee or an outside firm? As you start planning for these things, you’ll need to have your business set up to accommodate your goals. We found a list of commonalities among contractors like Rich who turn these goals into reality, including:
Use of technology. Successful contractors embrace technology and use it to their advantage to save time in scheduling, quoting, invoicing and managing communication with customers and prospects.- Quick turnarounds on quotes. In the age of the internet, no one wants to wait any longer than necessary. Using technology like the JobFLEX app allows contractors to assemble and send quotes right from the job site.
- A steady backlog of work. Due to solid sales and marketing plans and good word of mouth, successful contractors find it easier to get repeat business and new customers.
- Referrals account for 30% or more of business. Contractors who learn to land referrals from partner businesses and clients don’t have to spend nearly the time trying to find new business.
- Steady cash flow. Cash flow is vital and successful contractors know this. Quotes require 50% down payment to start work, invoices are due on receipt and have penalties for late payment.
- Reinvesting in the business. Steady cash flow means contractors can pump money back into the business, meaning they can update equipment and add people to grow their team.
- Year to year profits. Well-oiled machines turn profits every year and allow a successful contractor to maintain quality employees and plan for the future.
Learn more about the “tale of two contractors” here.
You Have To Get Paid
Not to belabor this point, but so many contractors struggle because they don’t manage their cash flow. If you want to get rich, you need to be like Rich. In 2018, being like Rich means you are taking the following steps to ensure your cash flow is strong:
- Require money up front. Get 30-50% down before you begin working on a project.
- Consistent payment terms. Make payment due on receipt and DO NOT DEVIATE from it. Your customers will know what to expect when you do this consistently, and you’ll see a lot less late payments.
Read more on payment terms here.
Make 2018 Your Year
With the information provided above, it should be fairly clear if you run your business more like Dick or like Rich. Armed with the know how above, the only other thing you need to achieve your goals is the right tools. When it comes to putting processes in place for quotes and invoicing, a tool like JobFLEX can help you make the transition even if you’re not particularly tech savvy. Click on the link below to give JobFLEX a try today.
