In parts one and two of this three-part series, the Jacksonville construction lawyers at Cotney Construction Law discussed several strategies designed to help contractors improve their bottom line, including:
- Reevaluating pricing
- Eliminating redundant expenses
- Replacing hard work with smart work
- Investing in training
Now, we will bring our series to a close by discussing three more strategies that every contractor should consider if they want to improve the financial health of their business. Remember, regardless of how successful your business has been in the past, the industry is experiencing a period of drastic change characterized by new advancements in the field of construction management, planning, and execution. It’s imperative that contractors arm themselves with the necessary tools and knowledge to maintain profitability for the years to come.
5. Embrace New Opportunities
When your business started out, you likely focused on a single niche to keep costs consistent, but as time passed, you noticed that it became harder and harder to stay competitive. If you ignore potentially lucrative contracts because your firm doesn’t specialize in a certain type of construction, you’re only limiting your ability to generate profits. Start slow and branch out into new areas of construction that you are comfortable overseeing. There’s no need to rush, slow and steady truly does win the race in most occasions, but you have to be willing to at least try. Otherwise, your business will be stuck in the doldrums with no plan of escape. For example, if you specialize in single family homes, consider transitioning into duplexes and condominiums.
6. Cut Your Losses and Move On
There are few things that can hurt your business more than the unwillingness to accept a loss. Very few business owners make the right move every time, but it’s vital that you have the ability to recognize a mistake and eliminate it before it becomes a parasite for your business. Don’t let your ego get involved, simply opt out when something seems unsustainable. The minor loss is preferential to the financial catastrophe that could be waiting on the horizon.
7. Get Legal Help
If there’s one thing you want to avoid at all costs, it’s getting into a legal dispute with an owner during the course of a project. This is one of the quickest ways to compromise the profitability of your firm. Partner with a Jacksonville construction lawyer today and prevent legal disputes tomorrow and every day after. From negotiating and reviewing your contracts to helping you perfect a mechanic’s lien to protecting your license, there’s no end to the benefits of partnering with a legal representative who has spent years defending contractors. Committing to a small monthly payment could pay dividends once a dispute arises.
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.