5 Rules to Run Your Contracting Business By

Experienced business owners will tell you that there isn’t many hard-and-fast rules you can follow that will guarantee success. In fact, one of the hardest things about running your own company is deciding when to be unconventional, and which risks to take.

Still, there are some tried-and-true bits of advice that still hold a lot of weight in 2013 and beyond. In fact, you could easily call them rules to run your contracting business by, since ignoring them is an almost surefire way to lose profits and stop your company from growing.

Here are five of the most important that every California licensed contractor needs to be aware of:

1. Invest in your company, and yourself. The minute you stop investing in your company, it stops growing. New equipment, software, and ideas make it possible to get more done, or finish projects faster and to a higher standard. So, learn to make smart investments in your business, and yourself.

2. Never make the same big mistake twice. No matter how well prepared you are, know that you’re going to make some mistakes along the way, and potentially some very big ones. The key isn’t to avoid all errors, but to learn from them so you don’t suffer from the same problems or setbacks again and again.

3. Always save some of your money for the unexpected. As we have noted in the past, having cash on hand makes it much, much easier to keep your business running. Get in the habit of saving a bit of each check you receive, and you’ll find contracting is a lot less stressful than it would be otherwise.

4. Be very careful when making hiring decisions. This is one part of running a company that a lot of contractors struggle with. The men and women you bring in to your business have to represent you while you’re not there, so choose the right skills and personalities for the job.

5. Keep learning and moving forward. Construction is always changing, and it’s up to you to keep learning and adding to your skill set if you want to compete with the next set of new contractors, and all the other construction professionals who will come into the market after them.

Obviously, finding success as a licensed California contractor isn’t as simple as following a few rules. But, if you can keep these in mind, you can avoid some of the biggest errors and problems that cause construction firms to fail… and that’s a pretty good start for any brand-new contractor.

Thinking of becoming a licensed California contractor? CSLS has a number of self-study and in-class options to meet any schedule or budget. Click here to learn more.