If you are a subcontractor who wants to grow your business both in the area of finances and client relations, our Tallahassee construction law attorneys want to help you get off on the right start whether you are new to construction work or a seasoned professional. Practicing the tips in part one and this last section will increase your chances of winning more contracts.
Manage Your Finances Well
The construction industry is known for delayed payments, which puts subcontractors in a compromising position. This is why subcontractors must ensure that they have a strategy for managing their finances. Mismanagement of finances is the reason many businesses fail. Some negative cash flow is expected; however, a consistent struggle with negative cash flow can ultimately lead to you closing the doors of your business for good.
General contractors are relying on you to have an adequate cash flow to uphold your end of the contract agreement. Be sure that you are keeping detailed records of your expenses and that you can cover your labor, materials, and any upfront costs. A lack of capital can be a hindrance to the project and will reflect badly on you which jeopardizes your chances of getting repeat work from the owner.
Going Above and Beyond the Call of Duty
By no means do you want to go above and beyond by working for free, but you do want to show the general contractor that you are willing to do more than the bare minimum to meet project goals. However, going above and beyond means being proactive. You take responsibility by staying in communication with the project manager, general contractor, and customer. You monitor projects regular and conduct business with integrity. Your reputation speaks for itself and you are regarded as a professional, trustworthy, and dependable subcontractor.
Proactively Marketing Your Business
Businesses do not build themselves. Subcontractors must proactively market and promote their business if they want to continue to grow. This requires some investment on your part to ensure that your subcontractor business stays top of mind. Get a website or try social media so prospective customers will know that you exist. Understanding the type of general contractors you want to work with is key as well as understanding what sets you apart from your competition. Why would a general contractor hire you over another subcontractor? Your past projects also serve as a form of marketing. What would your past customers say about you? Would they recommend you to others?
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.