Business Insights for Residential Contractors

You could be losing $60,000 or more in annual profits without even realizing it. If you're like most contractors, you're probably nodding your head that you are working too hard and keeping too little. You have most likely mastered the basics of managing your costs, but here's the shocking truth: there's a whole array of hidden costs silently destroying your bottom line. Labor [Link to Top 3 reasons your estimates are leaking profit] is the biggest profit leak we see with most of our clients, but there are many others.

As a construction business owner, you know change orders are inevitable. But here's the game-changing truth: with the right strategy, the change order process does not have to be a nightmare. Set the Stage for Success (Before You Even Pick Up a Hammer) Your change order success story begins long before the first nail is driven. Here's how to lay the groundwork: Introduce change orders early: By covering your different processes during the sales meeting, you demonstrate professionalism. Make it official: Include a detailed change order section in your contract covering communication, approvals, and consequences.

Is your construction business ready to take its financial management to the next level? You're in good company. Many successful contractors are discovering the power of strategic cash flow management to boost their bottom line and reduce stress.

Your profit margins might be telling you a shocking story. As a contractor, you might think high revenue is the key to success. But here's the truth: you can sell $10,000,000 in a year and still struggle if your profit margins aren't healthy. It's not about how much you're bringing in; it's about how much you're keeping. Let's dive into some game-changing financial insights that could revolutionize your residential remodeling or new home construction business.

Discover how healthy margins can transform your entire operation. As a general contractor, you might think that financial success is the ultimate goal. But here's a game-changing truth: improving your profit margins can revolutionize every aspect of your business, from decision-making to work-life balance. Let's explore how focusing on margins can lead to a more efficient, scalable, and enjoyable contracting business, and personal life.

Let's talk about something crucial for your custom home or remodeling business: managing by the numbers and focusing on profitability through a solid business strategy for contractors. You know how it goes - we often find ourselves taking on any job that comes our way just to stay "busy." But here's the thing: being busy doesn't always mean being profitable. It's time to shift our focus from simply “staying busy” to actually making money and improving our quality of life. Think about it - when you plan a vacation, you don't just wing it, right? You figure out where you're going, how you'll get there, and what you'll do. Your business deserves the same level of planning. Without a clear strategy, you might find yourself working hard but not seeing the profits you deserve.

Accurate estimates can make or break a GC's success. Simply factoring in your employees' hourly wages and projected work hours won't cut it. This leads to underpriced projects and profit leaks. For a healthy bottom line,you need to calculate the fully accounted labor rate of your employees.

Bidding on construction projects can sometimes feel like a gamble. You pour hours into detailed proposals, only to lose out to competitors, giving away your valuable time for free. But what if there was a way to get paid for your time and expertise even before the project starts and help ensure the client gets exactly what they want? That's where the Professional Services Agreement (PSA) comes in—a game-changer for GCs tired of the endless bidding cycle. Architects and engineers use PSAs all the time, and so can you!

Winning projects is EXCITING! But one often overlooked area that can significantly impact your success in winning these projects is your client intake process. A weak intake process can lead to a domino effect of problems, but having a well-defined intake process will make a good first impression, qualify leads effectively, and ensure you come prepared for the sales and leave a lasting impression with potential clients. So, why is a solid intake process so crucial for GCs?

You're not alone. Poor client expectation management can quickly sour even the most promising project, turning dream projects into profit-draining nightmares. But there's hope! By identifying the 5 key red flags before they derail your construction project, you can steer clear of client mishaps and navigate towards smooth sailing and satisfied customers.