Working in the construction industry as a contractor can be extremely lucrative if you have a deft understanding of the costs and expenses that fuel your projects. However, when you fail to keep a close vigil on your finances, it can lead to a severe lack of profitability. This can quickly bankrupt a business if the proper actions aren’t taken in a timely manner.
In part one of this three-part series, the Jacksonville construction attorneys at Cotney Construction Law discussed two important strategies that contractors should employ to improve their bottom line — adjusting pricing and cutting down expenses. Now, we will continue to propose effective strategies to help you bolster your bottom line and grow your construction business.
3. Work Smarter, Not Harder
While there’s no underplaying the value of hard work, it’s important that contractors embrace intelligent solutions to help improve their bottom line. By working smarter, you can greatly reduce the time and money spent completing a project. Many contractors have found success by delegating tasks to proficient workers who excel in certain areas. Others have invested in new technologies — like drones, advanced personal protective equipment (PPE), and construction management software — to help streamline the building process, decrease the likelihood of human error, and safeguard workers’ health. While it can be mentally challenging to cede control to other team members and place your confidence in new technology, it can greatly improve efficiency while simultaneously driving profits in a positive trajectory.
4. Invest in Training
Let’s face it, there’s a severe labor shortage threatening the construction industry and if we don’t act quickly, it could spell disaster for construction businesses that don’t have a strong foothold. Fortunately, there’s one solution that can help counteract this issue: investing in additional training for workers. Skilled workers not only increase the value of your work, they also tend to stick around longer since they feel as though their future is being supported by the company they’ve aligned with. Construction firms with a large pool of skilled workers will outlast their competitors once the labor shortage reaches critical mass. In other words, investing in training now will likely be a short-term expense with positive, long-term repercussions.
To learn more about strategies contractors can employ to improve their bottom line, read part three.
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.