Our Jacksonville construction attorneys know that running a contracting business can be one of life’s most rewarding experiences, but it can also be one of the most frustrating experiences too. Minimizing and eliminating some of the bumps in the road is the key to creating a smoother and more joyous path. The following tips will help you stay on track to make the journey worthwhile. For the rest of our tips, read part two of the article.
Plan to Win
You cannot approach construction work without a plan. A lack of preparation only leads to failure. Planning on the front-end of your projects will help you reach your goals. If you’re the type of contractor that takes on any project that comes your way or one who mishandles finances, you will be in for a rude awakening at the end of the year. Detailed planning is essential to your long-term success. You must consider the following in your plans:
- Contract administration
- People management
- Budgeting and finance
- Legal issues
Follow your plans and revisit them to make adjustments when necessary.
Run Away From Bad Contracts
A strong contract is essential to your success. Do you know a bad contract when you see one? If you do not understand the language and terms of a contract, you should contact a Jacksonville construction attorney immediately. Never sign on the dotted line unless you are clear about what the agreement entails. Once signed, you are agreeing to every obligation, risk, and liability. If a legal dispute were to occur, you want to be sure you contract provisions look out for your best interest.
Establish a Credit Line
The construction industry is notorious for slow payment. As a result, many contractors often struggle to keep a balanced cash flow. If you own a small contracting business, you likely do not have the same backing that a larger company would have. This is why you must establish secure lines of credit and work diligently to maintain it by keeping your debt balanced and paying off the line when you receive your payments. Doing so will help you keep your business afloat while you continue to focus on your daily job production instead of worrying about your finances. You can keep your cash flow healthy by meeting your client’s requirements, keeping up with your billing, and invoicing your clients consistently and on time.
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.