Growing a contracting company will definitely include some challenges that you need to face. As with any type of business, you can’t focus on expanding too rapidly. While there are many ways to expand your construction company, focusing on keeping your accounting up today, labor properly tracked on job sites, and managing labor costs is a great place to start.
Doing so will only result in you spending too much money buying equipment that you don’t need and employees that you can’t afford, especially when compared to the amount of money you’ll be bringing in.
Successfully growing a contracting business is something that not only needs to happen organically but that also needs to happen slowly over time.
👉Related: Ultimate labor tracking guide for business owners
One of the most important things that you can do when growing a contracting business is understand fully that the process isn’t one that will happen quickly. Even the most successful companies all started out small. Their growth didn’t happen instantaneously – instead, it happened organically over great periods of time.
Managing your expectations with regard to both the rate at which your company is growing and the direction it’s moving in will ultimately help you stay focused on your long-term goals. You’ll be more likely to make better decisions because you’ll understand you aren’t playing the lottery. Growing a contracting business isn’t a “get rich quick” scheme. If anything, it’s an investment in both you and your employees' futures.
No matter what type of company you’re talking about, two of the biggest factors that are associated with growing a business include both time management and lost wages. If your employees aren’t effectively managing their time, they aren’t reaching their maximum possible earnings potential. With more employees to keep track of your old methods of time tracking might not effectively get the job done.
This can dramatically affect both your ability to hire new employees and your ability to go after those large-scale jobs that are required for your organization to grow.
Time management IT solutions allow all of your employees to stay on the same page with regard to where they’re supposed to be going and what they should be doing when they get there. As productivity increases so will revenue and ultimately the size of your business.
In order to successfully grow a contracting business, you need to both:
Maintain realistic expectations about that growth and carefully manage employees on each job site.
These are two of the most important steps when it comes to scaling your business. So long as you keep your eyes on the proverbial prize, you’ll have the company you always dreamed of before you know it.
The key is to create scalable solutions to your problems. If you're still using punch cards or time sheets for tracking labor costs and employee productivity, as you begin to hire more employees this solution won't scare you. Start with applications such as a time tracking app for construction that will allow you better manage the flow of employees' work days.